EVALUATION OF IMPACT OF OUTSOURCING ON EFFICIENCY OF PUBLIC SECTOR ORGANISATIONS

Abstract

According to rough estimates, the amount of outsourcing projects in the Slovenian public sector have doubled in recent years and during the present economic and financial crisis, reach tens of millions of Euros. Outsourcing projects ought to reduce costs and help organizations to focus on core business processes which should consequently improve service provision and quality. Past experience and recent research carried out in the public sector show that outsourcing can indisputably bring many benefits to the organizations which master the art of devising, deploying, and maintaining outsourcing relationships, but for many organizations, these benefits remain elusive. The research focuses on in-depth analysis of the essential factors within the concept while examining the current situation in the field of outsourcing in the Slovenian public sector and eventually presents research findings on outsourcing of information technology projects (IT- projects) at the municipal level. The article analyzes the methodological, substantive, procedural and other relevant factors within the process of outsourcing and summarizes the results of our own empirical research on outsourcing of IT-projects in the Slovenian public sector. Paper finally provides guidelines for quality selection as well as effective and efficient implementation of outsourcing projects in the public sector

Keywords

• IT outsourcing, New Public Management, outsourcing effects, public sector, Balanced Scorecard

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