A Theoretical Study Of The Decision-making For Contracting-out In Public Services

The decision-making for contracting-out in public services is regarded as the research object in the paper. Summary and analysis of its main theoretical results at home and abroad are made in the files of legal regulation, management processes, cost/benefit and policy execution, after the meaning clarified between public goods and public services and the definition of contracting-out of public services made. The mainstream decision models of business process outsourcing are surveyed as the reference to the contracting-out in public services. The paper point out that the limitation of the former applying in the latter is reflected on the lack of publicity in legal regulation, strategic choice and cost/benefit based on analysis the strategic arrangement and economic benefit.Based on the reference from decision models of business process outsourcing, the paper point out that the crux of the decision-making for contracting-out in public services applies two aspects, one is lack of integration between relative subjects in guided theory in macro-aspect, and the other is structural absent at the practice in the Micro-aspect. The dilemma reflects that strategy direction is ambiguity, laws and regulations is mismatch, and cost/benefit is difficult to quantization. To resolve the problem, the paper provides the suggestion that to establish guiding principles, to perfect legal regulation, to use correct methods, to build scientific model. At last, the paper indicates that to provide public services better, to maintain public interests and to enhance social welfare are the ultimate meaning of decision-making for contracting-out in public services.