THREE:
Chapter 3 surveys a range of governance interventions that are available for states to resolve outsourcing problems. Contractual governance centres on improving contract design and management, seeking to strike a balance between detail and formalized contracting and relational or framework contracts. Beyond contracting, the state may seek leverage in public markets (public procurement) to impose accountability on providers keen to enter or continue their partnership with the public sector, or it may, by selecting different types of provider, diversify its provider pool to temper incumbency powers. It may use regulatory governance to impose additional constraints on providers, supplementing contractual and market mechanisms, and it may potentially create an institutional body – for example, a public or regulatory agency – to oversee implementation.
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