Creating very specifically defined contracts makes them easier to monitor and evaluate. Services to be provided 2. Quality of services required 3. Clear expectations also go a long way toward forming successful relationships with the private vendors responsible for providing the contracted services. Cost savings from Privatization .
Savings stem from increased productivity rather than lower wages.
Increased productivity is derived from better use of technology and better management. Managers in the private sector have the right to hire and fire workers. In the public sector it is usually impossible to get rid of an unproductive employee Obstacles to Privatization 1. Lack of information or evidence regarding the effectiveness of privatization efforts. General opposition from elected officials.