Backsourcing in the private and public sectors—A systematic review

Abstract

This article provides a systematic review of the literature on backsourcing. The aim is to synthesize existing literature in order to compare and analyze similarities and differences in backsourcing in the private and public sectors. The study asks questions about: which methods and theories have been used, why backsourcing has been implemented, and what reasons have been described for backsourcing. The study is based on an analysis of 500 articles about backsourcing and 33 articles in the final data set. The results show that backsourcing is primarily caused by: increased costs, lack of quality, and contract problems in the private sector, along with loss of control, cost saving, and changed strategy in the public sector. The study's synthesis highlights three explanations for how backsourcing is managed and interpreted in both the sectors. The article contributes specifically to summarizing current research on backsourcing, synthesizing how backsourcing has been studied, illustrating gaps in the research, as well as explaining relevant differences between private and public backsourcing.

Abolishing the Act on System of Choice in Swedish eldercare: on arguments and replacements in the municipalities

“…, 2021; Warner and Aldag, 2021). According to previous research, ideology does not have a substantial effect on re-municipalization (Hanna and McDonald, 2021; Berlin et al ., 2023; Warner, 2023). However, it must be noted that party politicization at the local level is low in countries investigated such as the United States (Warner and Aldag, 2021; Warner, 2023) while also social services have been largely neglected in previous research.…”

“…For example, it may be an ambition to regain democratic control over critical infrastructure, such as water and energy, or not to let in forprofit providers in tax-funded public services (e.g., Hall, 2012;Clifton et al, 2021;Warner and Aldag, 2021). According to previous research, ideology does not have a substantial effect on re-municipalization (Hanna and McDonald, 2021;Berlin et al, 2023;Warner, 2023). However, it must be noted that party politicization at the local level is low in countries investigated such as the United States (Warner and Aldag, 2021;Warner, 2023) while also social services have been largely neglected in previous research.…”

“…, 2021; Voorn, 2021; Warner and Aldag, 2021; Albalate et al. , 2022; Berlin et al. , 2023; Warner, 2023).…”

“…However, in some cases, the public sector regains ground in the ownership or provision. Therefore, lately, another trend has received attention, described as backsourcing (Young and Macinati, 2012;Thakur-Wernz, 2019;Berlin et al, 2022Berlin et al, , 2023, insourcing (Damanpour et al, 2020), reverse privatization (Hefetz and Warner, 2004;Warner, 2008;Warner and Hefetz, 2012), contracting back-in (Hung and Lu, 2022), or-in the case of most relevance here since we are dealing with the local levelre-municipalization (Hall et al, 2013;B€ onker et al, 2016;Wollman, 2018;Clifton et al, 2021;Voorn et al, 2021).…”

“…Simultaneously international research pays attention to the fact that marketization and privatization in the public sector are not irreversible nor a lineal development (e.g., Bel et al, 2018;Voorn et al, 2021;Berlin et al, 2023). The case of LOV in Sweden is no exception.…”