Open Access
Article
SciPap-1117
Contracting and Outsourcing in Public Sector in the Czech Republic
by
Beáta Mikušová Meričková 1 
, Markéta Šumpíková 2, Nikoleta Jakuš Muthová 3 and Juraj Nemec 4,*
1 Department of Public Economics and Regional Development, Matej Bel University, Tajovskeho 10, Banska Bystrica 975 90, Slovakia
2 AMBIS, College of Regional Development and Banking Institute, Lindnerova 575/1, Praha 118 00, Czechia
3 Department of Public Economics and Regional Development, Matej Bel University, Tajovskeho 10, Banska Bystrica 975 90, Slovakia
4 Faculty of Economics and Administration, Department of Public Economics, Masaryk University, Lipová 41a, Brno 602 00, Czechia
* Authors to whom correspondence should be addressed.
Abstract: The aim of this study is to contribute to the recent discussion about contracting/outsourcing in public sector and its results. The study builds on the original research of contracting and outsourcing in the Czech public sector and assesses them from a comprehensive perspective. The following research questions are set: “Does contracting/outsourcing in public sector in the Czech Republic bring efficiency gains?” and “If not, why contracting/outsourcing services in the public sector in the Czech Republic do not bring efficiency gains?”. To answer the research questions two alternatives of services provision, namely internalisation and contracting, were evaluated. The three criteria, 1) expenditure on the provision of the service per citizen/employee, 2) the expenditure per performance indicator and 3) the quality of services evaluated on the basis of citizen/employee satisfaction as consumers of services were used in evaluation. To evaluate the efficiency of contracting services in the public sector was used the method of multi-criteria evaluation for selected samples - the method of the best values of criteria. It is not possible to come to the final conclusion about higher efficiency of internal versus external production. However, what can be clearly and un-doubtfully documented is the fact that depending on the concrete case the more efficient solutions differ. The core factor of the limited success of contracting and outsourcing - the quality of contract management represent critical problem in the Czech Republic.
Keywords: Czech Republic, Outsourcing, Contracting, Public Service, Contract Management
JEL classification: H41 - Public Goods, H57 - Procurement
Received: 17 July 2020 / Revised: 16 September 2020 / Accepted: 30 October 2020 / Published: 4 December 2020
