The adoption and success of private sector outsourcing in Australia

Abstract

This paper examines the extent to which outsourcing practices are adopted by Australian private sector organisations and compares the level of outsourcing between private and public sector organisations. In addition the paper assesses the influence of management control systems on outsourcing success by examining the relationship between the exchange of information and the tightness of control with outsourcing success. Results reveal that while outsourcing in the private sector is as prevalent as in the public sector, outsourcing practices in the former are not as successful. The results also support previous findings in respect to the importance of management control systems in enhancing the success of outsourcing practices, with the level of information and the tightness of control found to be associated with the level of outsourcing success. The findings contribute to the outsourcing literature and provide an important insight into how organisations can enhance the success of their outsourcing activities.