Contracting back-in has received growing scholarly attention, but there is little empirical consensus in the literature as to what drives governments to bring previously contracted work back in-house and to what extent. This study performs a meta-analysis to synthesize 332 effect sizes from 16 existing studies concerning the antecedents of contracting back-in across different countries. The analysis indicates that contracting back-in is a market management strategy driven by low levels of market competition, high proportions of for-profit contractors, insufficient cost savings, and inadequate contract management. Meanwhile, contracting back-in is a political move shaped by left-wing political ideology and employee opposition to outsourcing. Environmental factors including unemployment rate, population size, and population density also play a role. This study provides empirical generalizations of previous results and contributes a more coherent knowledge base for future studies. Points for practitioners Our analysis indicates that contracting back-in is driven by a mix of both pragmatic and political factors, but pragmatic factors related to contracting management complexity shape contracting back-in in a more forceful way. Our findings also suggest that factors pushing governments to contract out do not necessarily have an impact on contracting back-in. Government decisions to contract out and contract back-in may be based on different considerations.
PurposeIn recent years, there is a steady increase of studies documenting the emergence of “contracting back-in” in many countries around the world, that is, governments bringing previously contracted services back in-house and once again relying on public employees to deliver these services. Through a survey of the academic discourse on contracting back-in, this manuscript describes the phenomenon of contracting back-in and discusses its implications for “bringing the state back in”.Design/methodology/approachThe manuscript conducts a systematic review of existing literature on contracting back-in with a focus on the scope and rationale of contracting back-in.FindingsThe existing literature demonstrates that contracting back-in is often as common as contracting out and can be found in a variety of countries and across different service areas. Existing studies also suggest that contracting back-in is driven by a mix of managerial, political, and environmental factors. The rise of contracting back-in could imply a revival of the administrative state in public governance and a more dynamic, potentially more complicated, system of public service delivery.Originality/valueThe manuscript contributes to the special issue on “bringing the state back in” through the lens of government contracting. It adds a number of implications to the discussion on the emergence of the “new” administrative state and strategies to reinvent it.
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