U.S. Federal Government Outsourcing Initiatives, Implementation and Benefits(2005年公共管理国际会议论文).doc

U.S. Federal Government Outsourcing Initiatives, Implementation and Benefits(2005年公共管理国际会议论文).doc

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U.S. Federal Government Outsourcing Initiatives, Implementation and Benefits(2005年公共管理国际会议论文)

U.S. Federal Government Outsourcing Initiatives, Implementation and Benefits Mary Johnson Florida Atlantic University, Florida, U.S.A. 33441 Abstract Ambitious plans of the U.S. government to outsource commercial activities are reviewed. The institutional model of Douglass North is applied as justifying these initiatives under the cost savings generated. Beyond transaction costs considerations, the role of motivations, institutions and descriptive jargon are discussed as relevant to current trends of outsourcing in the federal sector and private sector. Enabling legislation is traced that supports federal policy actions. In addition, the strategic sourcing policy under the George W. Bush administration is examined as the most current spin on federal outsourcing initiatives. Key words outsource commercial activities, federal outsorucing initiatives 1 Introduction A pervasive trend in federal government practice has been the increasing rate at which the government promotes outsourcing or competitive sourcing for the performance of governmental activities. Most recent history reaches back to the 1950’s with the A-76 Memorandum of the Office and Management and Budget. This document underwent several revisions in the years that followed. The intent, to rely on private business to perform governmental commercial activities, has been augmented in recent years. This is partly due to the increased use of outsourcing by private companies who are organizing their work around their core functions and outsourcing the rest of the work. Governments, federal, state and local are experiencing similar successes of cost-savings and increased benefits through the hiring of outsourced specialists. The most common measure of the success of the outsourcing effort is cost-savings reported. With this standard measure, the Douglass North model of institutions and the goal of minimizing transaction costs through institutional behavior fits nicely to explain the behavior of the federa

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