A Framework for evaluating the government contracting-out decision with an application to information technology
By: GLOBERMAN, Steven
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Contributor(s): VINING, Aidan R.
Material type: 
ArticlePublisher: Malden, MA : Blackwell Publishers, nov./dez. 1996Public administration review : PAR 56, 6, p. 577-586Abstract: How can government do a better job ate contracting out? Steven Globerman and Aidan Vining argue that contracting out is justified only when one can expect to lower the sum of production costs and the costs of managing the relationship between government and the contractee (transaction costs). While contracting out can usually reduce production costs, its value depends on whether it can reduce combined transaction costs and production costs. However, most transaction costs can be anticipated before contracting out. The article provides a logical taxonomy that lays out the main issues wich determine the feasibility and likely success of contracting out. The key issues in assessing contract design are task complexity, contestability and asset specificity. Potential strategies are available to modify each of these determinants. The authors offer some illustrations from information technology
How can government do a better job ate contracting out? Steven Globerman and Aidan Vining argue that contracting out is justified only when one can expect to lower the sum of production costs and the costs of managing the relationship between government and the contractee (transaction costs). While contracting out can usually reduce production costs, its value depends on whether it can reduce combined transaction costs and production costs. However, most transaction costs can be anticipated before contracting out. The article provides a logical taxonomy that lays out the main issues wich determine the feasibility and likely success of contracting out. The key issues in assessing contract design are task complexity, contestability and asset specificity. Potential strategies are available to modify each of these determinants. The authors offer some illustrations from information technology
Public administration review par
november/december 1996 volume 56 numero 6
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