Guidelines for public sector managers on assessing the impact of outsourcing on business continuity strategies: a Brazilian case

Abstract

Purpose This paper aims to propose guidelines for public sector managers in assessing the impact of outsourcing on business continuity (BC) strategies. This paper evaluated how public managers from the state of Pernambuco, Brazil, perceive outsourcing, considering BC and how it relates to the outsourcing of services and activities. Design/methodology/approach Theoretical lenses of outsourcing and BC were used to derive the study hypotheses. A questionnaire was drawn up to collect information to test the hypotheses. To test the proposed hypotheses, binary logistic regression was used through an empirical analysis of a sample of 51 Brazilian public managers. Findings This study found that when the public sector suffers from negative impacts of financial restrictions, outsourced services are the first ones to receive the negative impacts. This has had an adverse impact on BC in the public sphere. On the other hand, the authors verified that the public sphere’s capacity for resilience and the existence of specific methodologies to support public managers in outsourcing decision-making can contribute to BC. Research limitations/implications This study assists public organizations to take advantage of internal outsourced services in the best possible way, making better use of public resources, gaining social legitimacy and legitimacy also in the provision of public services. However, each public sector can present different risks of non-continuity, and this aspect could not be considered in this research as well. Originality/value This study is a pioneer in highlighting the relationships between outsourcing strategies and BC in public services in Brazil. Through the guidelines discussed in this study, public managers could develop a more effective response to the implications of post-outsourcing budget constraints. In addition, the findings of this paper add to an understanding of the importance of business strategies for public services continuity and seek to help reduce uncertainties and better inform the government decision-making process.