Government production might be more efficient than outsourcing when these prices overwhelm savings that might otherwise accrue from acquiring out.
While supporting contracting as a viable tool for public sector managers, the public sector often pays insufficient attention to the costs of operating contracting out, and monitoring contractor compliance.
Contracting out is used as a means to provide essential public services and serve public functions in a wide range of country surroundings including delicate states, post-conflict nations, countries hit by natural disasters, stable developing countries, and industrialized countries.
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