By Simon Domberger
In line with over a decade of study and consulting adventure by means of Simon Domberger, Contracting Organization's conclusions have many sensible implications. The ebook develops an analytical decision-making framework for the review of contracting ideas, and has relevance in either the personal and public sectors. will probably be precious to all these looking a greater realizing of the outsourcing phenomenon.
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Extra resources for The Contracting Organization: A Strategic Guide to Outsourcing
But the call to use the market for the provision of a whole range of public services was made several years earlier by Savas (1987), in the book entitled Privatization: The Key to Better Government. Despite the widespread influence of the would-be public sector reformers, the US federal administration has not implemented a competitive service programme on the scale seen in the United Kingdom. Defence procurement has been, and continues to be, a joint private-public sector endeavour, although the methods of selecting defence contractors have been subject to frequent criticisms, particularly from academics.
A more detailed analysis of the forces propelling organizations towards contractual solutions would be useful. These forces are changing the nature of both the private and public sectors, and they will be considered according to this division. Factors driving organizational change in the private sector The forces which are making companies transform themselves are shrouded in speculation and hyperbole. The usual suspects are globalization, competition from low-wage developing countries, and advances in communications and information technology.
It is interesting to note that Marks & Spencer is actually moving away from the network concept and coming closer to the classic type of market transaction, by introducing competitive tendering for some of its bought-in services. But what is beyond doubt is that the vertically integrated, horizontally diversified organizations are not, in general, as competitive in the modern economic environment as they may have been before. Where the boundaries of the organization should now be drawn given its own particular circumstances, and how to structure contractual relationships, are questions which will be considered in later chapters of this book.