The authors argue that outsourcing technology should be implemented into governance systems with consideration of their public or private nature. Functional review as a method of the administrative reform study showed lack of market-based governance methods, which proved to be effective in the private sector. Authors consider how market-oriented were introduced into the national security system of Russian Federation. The authors' aim is to find out the reasons for current state of affairs.

more »

... urcing was considered as such an innovative method of public administration, which was supposed to help to save financial resources and to leave governance structures from their usual functions. An analysis of outsourcing practices in the Russian army shows that instead of saving money, the cost of services received on the market increased by many times, and its use in the Armed Forces increased threats to national security instead of getting preferences.