Nowadays, permanent employment has seized to be an option for most people since contracting out has now become a trend. At first, contracting out was a government habit, but businesses and different organizations have started opting for this option, especially for services that are not covered by in-house staff. This trend has proven that privatization and the private sector at large have drastically gained popularity within the government and other business entities. However, most people are still not much aware of this strategy as well as the dangers it possesses hence requiring legal interventions. Major aspects involved in contracting out and my perspectives about contracting out will be addressed. On a personal level, I have no experience in the field of contracting out, but I have heard a thing or two about what it is all about and how it works. Contracting out, also known as outsourcing, is the act of making arrangements with another person or entity to do a specified job for them within a given period and agreement. This agreement between two parties is usually written and enforced by law while specifying the good or the service being procured. Despite not having experience in the field, some of the reasons that have contributed to the growth of contracting out include its cost-effectiveness and efficiency as well as the need for encouraging innovations (Ya Ni, & Bretschneider, 2007). As an accountant, managing funds is crucial in any organization and therefore requires well-thought decisions that will reduce expenses. The Healthcare sector is one of the industries that require proper funds management which can be done through outsourcing. Contracting out can be beneficial, especially in cutting out organizational expenses and at the same time increasing work efficiency. The Healthcare sector involves providing services to the general public and thus protecting the public interest is a major concern in an outsourced world. As much as contracting out tends to reduce expenses, it is known to encourage corruption and unethical behavior. According to Cohen (2008), the act of contracting out started way back during the Revolutionary War when Americans were instructed to feed, arm, and clothe the military. However, as time went by, laws and regulations had to be implemented to improve the integrity of contracts and offer protection to public interests. The first law that was developed in regard to contracting out is the 1792 federal contracting law (Cohen, 2008). More laws have since been developed and all promoting aspects of integrity, transparency, and ethics. In my opinion, outsourcing services is a healthy way to promote not only innovation but also nation-building and improvement of services. Growth in E-governance has also led to the tremendous growth of contracting out. It has made the need for electronic services rise. Some of these services include data processing, website hosting, as well as project management and training. Contracting out is also another way of growing the private sector which aids in economic stability by providing income and employment. However, as much as it is beneficial, it also comes along with some drawbacks that cannot be assumed. Some of these drawbacks include a lack of transparency, overcharging, and encouraging corruption which can all be regulated by law enforcement (Vrangbæk, Petersen, & Hjelmar, (2015). In conclusion, contracting out is now seen as one method of acquiring public services at affordable prices. On the other hand, the government can attract and retain industries through contracting, which acts as a way of subsidizing local economies. In the healthcare sector, outsourcing can be used to obtain services such as training staff and project development and management. However, further studies on contracting out are encouraged to establish more benefits as well as the solution for the stated drawbacks.
References
Cohen, S. (2008). The responsible contract manager: Protecting the public interest in an outsourced world. Georgetown University Press.
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Vrangbæk, K., Petersen, O. H., & Hjelmar, U. (2015). Is contracting out good or bad for employees? A review of international experience. Review of Public Personnel Administration, 35 (1), 3-23.
Ya Ni, A., & Bretschneider, S. (2007). The Decision to Contract Out: A Study of Contracting for E‐Government Services in State Governments. Public Administration Review, 67 (3), 531-544.
