Efficiency of Outsourcing in the Public Sector in the Czech Republic

Outsourcing internal services to private for-profit and non-profit firms is one of the most prevalent types of alternative service-delivering arrangements. The relevant literature proposes that outsourcing may, but need not, improve cost-effectiveness and the quality of service delivery. The efficiency of outsourcing is determined by policy and management capacities, resources and experience in public sector of specific country. This paper seeks to analyze the efficiency of outsourcing in the Czech public sector by using the multicriteria analysis (MBVI method, used to construct composite efficiency scores). The study uses a quantitative approach to investigate the research question and analyzes the originally collected survey data from own research. The results are slightly complicated - our analysis does not show one uniform trend, cannot answer if outsourcing is better solution as compared to internal production. However, such findings are in line with international experience, indicating that the success of outsourcing depends on many internal and external factors and cannot be universalised.