The Possibility of Outsourcing Activities in Government Units: Risks and Challenges

Abstract

The concept of supplying outsourcing has emerged as a modern administrative method that helps economic units to provide the required services or products at a low cost. The secondary activities are entrusted to a third party as a specialized external contractor who relies on modern and advanced technologies when implementing the activity. It helps the economic units to focus only on their main activities, which is to provide the product or service to the customer according to the desired requirements. However, such a decision may not be without risks and challenges if applied to government units. This research will review in a theoretical way the decision of outsourcing by the government units and the risks and challenges that accompany this decision, as well as clarification of the mitigation mechanism for these risks in the application and how to regulate the relationship with the external contractor in order to ensure the safety of implementation. The most important conclusion of the research is: The outsourcing activities help government units to improve their performance through the development of human capabilities and access to technology and modern techniques of the external contractor who has a high level of performance and quality in the field of activity.