Year: 2025
Type: article
Abstract: Outsourcing in the public sector has not been examined in depth academically (Warner & Hefetz, 2008). This review addresses two key questions: (1) What does empirical research reveal about outsourcing decisions and outcomes in the public sector? and (2) What gaps remain for future study? To explore these, we analysed 36 empirical articles published between 2000 and 2025 across 35 scholarly journals. The literature highlights factors such as client and vendor capabilities, relationship dynamics, contractual governance, decision-making processes, and transaction features. A central theme is the role of governance—both relational and contractual—in shaping outcomes. Effective outsourcing is not purely transactional but relies on trust, collaboration, communication, and adaptive contract design. The review also identifies gaps in understanding strategic motivations, environmental influences, dynamic interactions, and new sourcing destinations, pointing to promising directions for future research.
Authors: John A Gonsalvez, MV Mahesh
Language: English
Subfield: Management Information Systems
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4415535643