An approach through which the government retains responsibility for providing a good or service but hires private sector firms to actually provide the good or service is called <u>Contracting out.</u>
<h3>What is the meaning of contracting out?</h3>
Contracting out or outsourcing is a part of public sector reform strategy wherein government engages a private entity to provide a service within a set of specific conditions.
Contracting out is used as a means to deliver essential public services and perform public functions in a wide range of country environments including fragile states, post-conflict nations, countries hit by natural disasters, stable developing countries and industrialised nations.
If your local city uses a private garbage company, you are already familiar with contracting out. Examples of contracting out and competi- tive sourcing can be found at all levels of government. The federal government has contracted out services as simple as window washing and as complex as air traffic control.
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