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Antecedents of Contracting-Back-In

A View Beyond the Economic Paradigm

University of Georgia, chongan{at}uga.edu

Many contracted-out public services are now being contracted back into the public sector. The author first reviews the conventional economic factors—imperfect contracting market—which can bring pernicious effects to contracting-out. Second, the author proposes 9 noneconomic possibilities which may lead to contracting-back-in by looking into employment relationships, knowledge creation, isomorphism, opposition from unions and public officials, the loss of middle-level managers, political interference, the failure of balancing trust and control, corruption, and the loss of public values. Finally, the author concludes that a holistic understanding of contracting can hardly be developed unless one incorporates and balances economic and noneconomic views.

Key Words: contracting-back-in • contracting failure • contracting-out • public management

Administration & Society, Vol. 41, No. 1, 101-126 (2009)
DOI: 10.1177/0095399708330258


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