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A contingency approach to managing outsourcing risk in municipalities

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  • Federica Farneti
  • David W. Young

Abstract

We discuss outsourcing risk in relation to different governance models, and provide a framework for classifying the risk related to an outsourcing choice. We argue that different kinds of outsourcing have different degrees of risk, and that the governance model needed for successful outsourcing is contingent on the nature and amount of that risk. As a result, municipalities need to use several different governance models, each attuned to the degree of risk of the service being outsourced. Moreover, a municipality's managers must be especially careful not to outsource a service unless they have the capability to manage the requisite governance model.

Suggested Citation

  • Federica Farneti & David W. Young, 2008. "A contingency approach to managing outsourcing risk in municipalities," Public Management Review, Taylor & Francis Journals, vol. 10(1), pages 89-99, January.
    • Handle: RePEc:taf:pubmgr:v:10:y:2008:i:1:p:89-99
    DOI: 10.1080/14719030701763211
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    Cited by:

    1. van den Heuvel, Frank P. & de Langen, Peter W. & van Donselaar, Karel H. & Fransoo, Jan C., 2013. "Regional logistics land allocation policies: Stimulating spatial concentration of logistics firms," Transport Policy, Elsevier, vol. 30(C), pages 275-282.
    2. Debendra Kumar Mahalik, 2014. "Does Decision Changes—A Case Discussion on e-Governance Outsourcing: A Fuzzy Analysis Approach," Global Business Review, International Management Institute, vol. 15(4_suppl), pages 39-48, December.

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