The Research On The Transaction Cost Of Government Public Service Outsourcing

Public service outsourcing is the market competition mechanism into public service, during the supply by private enterprise instead of the government to produce public goods and services, is the government put the production public goods function in a way to transfer to the outsourcing contract private sector. Currently outsourcing is considerable countries worldwide by the public sector, the main objective of outsourcing is to by introducing market mechanism, reduce government expenditure, and curb government scale expansion due to the overstaffed organs, improve the quality of public services and ensure public interests as the main target. Western academic circles to public service outsourcing theory and practice research has ripe, but China’s public administration academic research in this field was relatively compare deficient, no fruitful achievements.As a transaction, the transaction costs in contracting out government services are inevitably existed. Contracting out government services may not be able to reduce transaction costs, we should compare the government internal institutions production costs and contract outsourcing cost, if the contract outsourcing costs below government internal production cost, used the contract outsourcing, conversely, the government to provide their own. At the same time, cost of uncertainty may be existed in contracting out government services, and reasonable definition of transaction costs is difficult. Analysis of domestic cases, and with the U.S. practice of outsourcing of public services, analyze the pros and cons, seeking truth from facts, made out according to actual conditions in China for their own road of outsourcing of public services. Based on these transaction cost variables, careful selection of public service outsourcing contracts, building of risk prevention mechanism and risk-sharing mechanism, and improving the ability of government control can be feasible paths to reduce the transaction costs in contracting out government services. The public interest has always been a public service contract and the ultimate goal of outsourcing criteria, in practice, the public sector should explore the diversity of service outsourcing mode of operation.