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Sourcing, Insourcing and Outsourcing of Telecom for the Swedish Public Sector
Linköping University, Department of Management and Engineering, Industrial Economics. Linköping University, The Institute of Technology.
Linköping University, Department of Management and Engineering, Industrial Economics. Linköping University, The Institute of Technology.ORCID iD: 0000-0003-3986-9160
Linköping University, Department of Management and Engineering, Industrial Economics. Linköping University, The Institute of Technology.
2010 (English)In: Strategic Outsourcing, ISSN 1753-8297, E-ISSN 1753-8300, Vol. 3, no 2, 144-162 p.Article in journal (Refereed) Published
Abstract [en]

Purpose – The purpose of this paper is to describe and analyze how and why the question of outsourcing or insourcing within a specific empirical context, telecommunications services, has been handled differently over time.

Design/methodology/approach – A longitudinal study on procurement of telecommunications for the Swedish public sector's organizations during the last 40 years. The empirical data were collected from three case studies and one research project.

Findings – The paper identifies four phases: from a simple buying situations, via insourcing of equipment in order to produce some services in-house, to outsourcing of telecommunications in a first step and to outsourcing of combined data and telecommunications in a second step. Three major contextual determinants are identified for the public procurement of telecommunications services: de-monopolization, rapid technical development and pressure on public agencies from politicians, citizens and others. In addition to low cost, core competence, control and flexibility, the paper identifies business development as a new logic for outsourcing and insourcing.

Research limitations/implications – This study is limited to Sweden and public procurement of telecommunications services. Therefore, it would be of value to test if the development of public procurement of telecommunications in other countries passed through the same phases and with the same determinants.

Practical implications – Many of the findings are valid for public procurement in other countries, especially in the European Union due to the common legislative base for public procurement.

Originality/value – The paper fulfills an identified need to carry out a longitudinal study of changes in public procurement of telecommunications through the different phases of in/outsourcing.

Place, publisher, year, edition, pages
Emerald Group Publishing Limited, 2010. Vol. 3, no 2, 144-162 p.
Keyword [en]
Public procurement; Telecommunications; Sweden; Outsourcing; Sourcing
National Category
Business Administration
Identifiers
URN: urn:nbn:se:liu:diva-16581DOI: 10.1108/17538291011060358OAI: oai:DiVA.org:liu-16581DiVA: diva2:158805
Available from: 2009-02-04 Created: 2009-02-04 Last updated: 2017-12-14Bibliographically approved
In thesis
1. Public Procurement and the Development of the Swedish Telecommunications Market
Open this publication in new window or tab >>Public Procurement and the Development of the Swedish Telecommunications Market
2008 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

This thesis describes and analyses public procurement and its processes in general against the framework of industrial marketing and purchasing. In particular, it focuses on the public procurement of telecommunications (“telecom”) and its effects on the de-monopolization and development of the Swedish telecom market based on empirical material from three case studies, interviews and publicly available written sources.

Public procurement is a significant part of any country’s economy. There is a plenitude of publicly available data due to Sweden’s and other public administrations’ transparency policies. Despite this fact, public procurement has been poorly covered in business administration literature when compared with the private sector’s purchasing and selling activities. This thesis tries to bridge the theoretical gap between knowledge of purchasing in business-to-business (“B2B”) and public procurement.

Public procurement can be considered as a special type of B2B transaction and, particularly in the case of bigger procurements, of project purchasing. The important difference is that public procurement must follow specific and stricter legislation compared with the private sector’s purchasing activities. Among other things, public procurement law restricts contact between the procuring organisation and tenderers in some phases of the procurement process, allows no changes after the publishing of the Request for Proposal and opens the possibility to appeal to the court if any party considers that the procuring organisation has not acted in accordance with the public procurement rules.

The telecom market has, over a period of thirty years, been transformed from a monopoly with practically no choice to a fully competitive market with several service and equipment providers as well as different pricing schemes and competing technical solutions. The development of the Swedish telecom market can be divided into four stages: Full monopoly, partial de-monopolization, full competition and system integration. The main driving forces behind this development have been the political decision to liberate the telecom market and achieve full competition as well as rapid and diverse technical development, which includes the introduction of mobile communication, broadband and Internet.

At the same time, the dependency on well functioning telecom in the public sector is constantly increasing due to political agendas such as agencies availability 24 hours 365 days (“24/7 agency”), use of telecom as a means of rationalization and increased internal efficiency as well as new usages in areas that previously were not using telecom in their daily routines. The public procurement of telecom has changed from being a relatively simple administrative issue through being of technical concern to becoming more and more of strategic importance, especially in case of outsourcing and/or procuring system integration from a prime contractor.

Place, publisher, year, edition, pages
Linköping: Linköping University Electronic Press, 2008. 199 p.
Series
Linköping Studies in Science and Technology. Dissertations, ISSN 0345-7524 ; 1219
Keyword
Public procurement, telecommunications, telecom market development, electronic procurement
National Category
Business Administration
Identifiers
urn:nbn:se:liu:diva-16587 (URN)978-91-7393-773-3 (ISBN)
Public defence
2008-11-21, ACAS, Hus A, Campus Valla, Linköpings universitet, Linköping, 13:15 (English)
Supervisors
Available from: 2009-02-04 Created: 2009-02-04 Last updated: 2013-08-29Bibliographically approved

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Brege, StaffanBrehmer, Per-OlofLindskog, Helena

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