Outsourcing public services

Kerekes, Etelka and Oszterhuberné Bartus, Ildikó and Tolnay, Anita (2019) Outsourcing public services. In: International Conference of Economics PhD Students and Researchers in Komárno : Book of Abstracts. Selye János Egyetem; Univerzita J. Selyeho, Komárno, pp. 129-139. ISBN 9788081223341

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Abstract

The economic and social changes of the 20th and 21st centuries also require the "development" of the state. Significant part of the government budget is financing the state institutions, while at the same time the quality of public services is lower than prior decades, concerning education, health or even tax authorities. The rigidity of their operation and their inflexibility in organization also hinder economic developments. As the state recognized its significance and its tasks reconsidered its project mechanisms. Its main target is not to maintain a malfunctioning supply system at high costs. Clear relationship is needed with exactly set responsibilities and detailed cost calculation. A possible solution was to outsource the activities, which allowed to determine the public tasks based on market principles and procedures. The state may delegate task to the public sector in varying degrees and in different ways. The theme of our work - as indicated in our previous thoughts already - is the outsourcing of public tasks to the private sector. Based on the available scientific literature, we briefly present the theoretical basis of public service outsourcing, risk associated to outsourcing and the applied methods. The main objective of this paper was to explore the benefits and obstacles of internal audit process achieved as an employee and as a contractor partner of an organization.

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