Chapter

Conclusions

Simon Domberger

in The Contracting Organization

Published in print November 1998 | ISBN: 9780198774570
Published online November 2003 | e-ISBN: 9780191596148 | DOI: http://dx.doi.org/10.1093/0198774575.003.0012
 Conclusions

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This concluding chapter contains some lessons from experience and conclusions regarding what is already known about contracting out, and how much more still needs to be found out. Four ‘lessons’ from the contracting theory and experiences discussed in the book are worth noting: first, one of the most powerful effects of the switch from in‐house production to external supply is the change in incentives; second, there is a link that is not always clearly visible between the way that contractual arrangements are implemented and the benefits that are subsequently derived; third, contracts are relationships, and as such are governed by the factors that affect all relationships; and last, contractual relationships can be thought of as lying along a spectrum that runs from spot transactions at one end to vertical integration at the other.

Keywords: benefits; contract implementation; contracting out; incentives; outsourcing; relationships; spot transactions; structure; vertical integration

Chapter.  1750 words. 

Subjects: Microeconomics

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