Factors Determining Employment Outsourcing in Public and Private Sectors

  • Ligita Gaspareniene Kaunas University of Technology
  • Rita Remeikiene Kaunas University of Technology
  • Grazina Startiene Kaunas University of Technology
Keywords: outsourcing, employment outsourcing, public and private sectors


Outsourcing is one of business kinds that influences development and organization of business processes. It earned scientific attention more than 20 years ago, and at present is increasingly establishing itself in public sector as a measure to reduce operation costs and provide qualitative services. This article presents the analysis of the field that has earned little scientific attention - the factors of employment outsourcing. That is why the aim of the article is to establish the factors determining the choice of employment outsourcing in both public and private sectors. With reference to the results of expert evaluation, the main differences and similarities buying employment services from outside in public and private sectors have been identified. In private sector, the factor that has a positive impact on employment outsourcing is absence of personnel department while in public sector, competences of the companies that provide employment services and available database resources are considered to be the most influential factors. The experts from both sectors were unanimous appointing it is the factors having the impact while choosing an outsourcing service provider. Employment outsourcing in public sector is negatively influenced by reluctance to dismiss long-term employees as well as poor quality of the service and increased costs. The latter factors also determine the actions in private sector to refuse a current outsourcing supplier and switch to another.

DOI: http://dx.doi.org/10.5755/j01.ee.25.2.6098