Analysis of the Criterions of Outsourcing Contracts in Public and Private Sectors: Review of the Scientific Literature

Theoretical literature defines service transfer from public to private sector as an outsourcing contract (Besley, Ghatak, 2003; Burgess, Ratto, 2003; Hart, 2003; Kettl, 2000, etc.). Although outsourcing in public and private sectors was analysed rather sufficiently, the criterions that determine making of outsourcing contracts in both sectors have hardly been analysed in complex. That is why the aim of the article is to identify the main criterions that determine making of outsourcing contracts in public and private sectors.The researchrevealed that although public sector's approach to outsourcing is prescribed by regulations while in private sector it is driven by the strategy, the majority of the criterions of making outsourcing contracts in both sectors are similar and include cost efficiency, cost reduction, risk management, improvement of service quality, efficiency increase, access to the resources and skills, process improvement, process standardization, customer satisfaction andadding value to the chain.