Term Paper: Outsourcing can be in Form of Different Systems

Sample Term Paper

Words 2,100

This is a term paper on outsourcing. Rather than being a single technique, outsourcing encompasses a range of alternative delivery systems. In the U.S. the most common outsourcing modalities include contracting, franchises and concessions, grants and subsidies, vouchers, and voluntarism.

Rather than being a single technique, outsourcing encompasses a range of alternative delivery systems. In the U.S. the most common outsourcing modalities include contracting, franchises and concessions, grants and subsidies, vouchers, and voluntarism.

Contracting

The most generally used method of outsourcing is contracting. With contracting a federal, state, or local government agency pays a private firm or not-for- profit entity to deliver goods or services to the municipal. In so doing, the governmental unit describes the amount and quality of the services to be provided. In most cases, the private provider is determined by aggressive bidding, a process that increasingly allows governmental agencies to compete for the right to persist delivering governmental services. This last point is worth highlight. A number of surveys and studies cited in this report reveal that the level of citizen contentment with public service delivery systems is higher when government agencies contend against the private sector.

Franchising and concessions

This technique also involves a governmental entity giving a private organization the right to provide services to the public. Here, however, citizens make payment for goods and services straight to the private provider. In many cases, this involves a governmental agency conceding monopoly privileges to the chosen private provider, who becomes the only source of the service within the government’s political jurisdiction or facility. Cable television is a case of a service frequently provided by an exclusive franchisee. Snack bars and gift shops at public parks and recreational facilities are common illustration of concessions.

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