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Research On The Risk Prevention Of Public Service Contract Outsourcing

Posted on:2015-02-24Degree:MasterType:Thesis
Country:ChinaCandidate:L WangFull Text:PDF
GTID:2296330431964525Subject:Administrative Management
Abstract/Summary:PDF Full Text Request
From a single center to polycentric governance has become an international trend.As one of the most important aspects of the polycentric governance,the market hasattracted much attention at home and abroad. China is also actively promoting publicservices marketization reform. Government introduce contract outsourcing into theproduction and supply of public services in order to improve the public service,promote the reform of the administrative and so on. In the1980s, contract outsourcinghas be incorporated into the practice of western countries, Our country also began topractice and research contract outsourcing in the1990s. Practice shows that the publicservices contract outsourcing achieved some success in improving the quality ofpublic services, diversity and productivity, etc. However, there are still many risksduring the entire period of public service contract outsourcing. Research on the riskprevention of public service contract outsourcing is still few, this is the content of this article.This paper argues that the public service contract outsourcing is an effective way ofproducing public service. The risk prevention is necessary because risks exist inpublic service contract outsourcing.The article around the risk prevention of public service contract outsourcing,illustrates from the related concepts of public service contract outsourcing risk, riskperformance, risk causes and risk preventive measures.The related concepts of public service contract outsourcing risk include publicservice, public service contract outsourcing and public service contract outsourcingrisk. The denotation of these concepts are diminishing. Through these concepts,readers can have a preliminary understanding for the public service contractoutsourcing and its risk. According to different subjects, risk performance of publicservice contract outsourcing can be divided into three aspects. The risk performanceof government include government liability risk, government legitimacycrisis, corruption and rent-seeking. The risk performance of private enterprise include government prisoner risk,supplier monopoly and lack of social fairness. Thejoint risk performance of the government and the private enterprise include thenegative externality risk, adverse selection and moral hazard.The causes of public service contracts outsourcing risk can be divided into fivespecific areas from three parts of the subject, market and contract. The first is theexistence of differences between the subjects of public service contract outsourcing,differences are mainly reflected in the information asymmetry and the value pursuit.The second is the government awareness of public service contract outsourcing isunclear. Mainly reflected in the government’s understanding for the complexity heprincipal-agent and the uncertainty of transaction cost in public servicecontract outsourcing are not clear. The third is the lack of government responsibilityin the public service contract outsourcing. The fourth is the public servicecontract outsourcing lacks benign market competition mechanism. Fifth, the publicservice outsourcing contract is difficult to complete. The first three aspects belong tothe cause of the subjects, The fourth aspect is the reason of market, the fifth aspect isthe cause of contract.In the public service contract outsourcing, the government is not only a server ofpublic, a buyer of public service, but also the supervisor of public service contractoutsourcing. If government want to prevent risks of public service outsourcingcontract, the premise is that the government understand the nature of public servicecontract outsourcing. Government can implement limited control to public servicecontract outsourcing by cultivating reasonable competition, implementing price capregulation and control decentralization. Government can also raise their contractmanagement ability through strengthening "steering" responsibility, perfecting theinformation disclosure of public service contract outsourcing and reverse contractoutsourcing. Eventually government should become a "smart buyer".
Keywords/Search Tags:Public service contract outsourcing, risk, Government, Private enterprise
PDF Full Text Request
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