Abstract
The aim of this study is to contribute to the literature on how involuntary backsourcing in public organisations is performed in practice and how it affects the relationship between principal and agent. The study focuses on two questions; 1) Which stages characterise the process when public contracts are involuntary terminated? 2) How does involuntary backsourcing affect the relationship between principal and agent during the transfer period? The study’s case concerns public backsourcing in Sweden, in particular, how a metropolitan municipality manages involuntary backsourcing. This study provides in‐depth insights into backsourcing and its practice, as well the degree to which the conflict dimension between the parties is affected. The study shows ‐ paradoxically ‐ that the relationship between principal and agent during the transition phase is characterised by dependence, mutual exchange of information, collaboration and less conflict. The study contributes to developing the theory of backsourcing, particularly the behaviour that is played out between principal and agent in the transition stage. The findings identify the need for public organisations which make outsourcing decisions to have contingency plans for bringing operations back in‐house.