ABSTRACT
LTJhc practice of employing irresponsible panics, having no official connection with the government. in the performance of public duties, which may be properly performed by regu lar officers of the government, und of purchasing by private contract supplies for the different deparll11CnIS, where open and fair competition might be properl y invited by reasonable advert isements for proposals. is injurious 10 the public service, and meets the unqualified disapprobation of Ihis House. (U.S. House COll1miucc on Government Contracts, 1861; quoted in Bolles 1886,231 -235)
Much has changed during the last generation in the way Western governments provide services. As Christophe r Hood relates, ''Thi rty years ago, many cllpitali st states di rectl y owned and operated a w ide range of production fac ilit ies ... O utsourc ing has re placed insourc ing across a range of functions a nd stales hllve moved from a ' making ' to a ' taking" role in many areas. Indeed, what would once have been seen a s core Slate functions .. "-like the runn ing of pri sons-arc coming to be part of a n outsourced contract secto r" ([996, [20). This process was influenced by the so-called New Publi c Manageme nt (N PM ) moveme nt (e.g ., Hood [99 [; Osborne and Gae b[er [992), which di scredited the ability of governmen t agencies 10 produce public goods and services e ffici e ntl y; the cho ice to move as many government funct ions as possible into the pri vate sector was considered a necessary re fo rm. NPM
took diffe rcnt forms in d iffcrent countries, but its gencral principles underlie the rapid growth of outsourcing.
