The impact of governance on the outcomes of contracting out

Abstract

Whether contracting out to private actors results in value for money depends on how public authorities govern, organize and manage service contracting. However, only a few studies have attempted to investigate how local governing practices can help to ensure that the contracting out of public services enhances economic efficiency and service quality. To further advance our knowledge on this topic, we present the results of a systematic review of 21 international studies, published between 2000 and 2018, on the impact of governance on the outcomes of contracting out. We combine insights from the reviewed studies to develop a theoretical framework of use to both practitioners and researchers that posits how eight impact factors mediate the influence of local governance on the outcomes of contracting out.