Outsourcing in the World
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Federal State budgetary institution of the highest education
«FINANCIAL UNIVERSITY UNDER
THE GOVERNMENT OF THE RUSSIAN FEDERATION»
(Financial University)
CHAIR OF “MICROECONOMICS”
«Outsourcing and its role in modern economy»
Written by:
Student of IFF 1-4
Dyukov Daniil Dmitrievich
Tutor:
Slobodyanik Victor Vladimirovich
Moscow 2012
Contents
Introduction - 2 -
1. The concept of outsourcing - 4 -
1.1 The theory of outsourcing - 4 -
1.2 The process of outsourcing - 15 -
2. Outsourcing in the World - 17 -
2.1 Outsourcing in General Motors Company - 17 -
2.2 Outsourcing in Russia - 18 -
The conclusion - 20 -
Literature - 22 -
Introduction
Outsourcing happens when a company decides to purchase a product
or service from a source outside of the company. It generally refers
to products or services that were once done in-house, now purchased
from a source external to the company. We do outsourcing in our everyday
lives, such as dining out, whereby we purchase our prepared food from
an external source— a restaurant— instead of making the meal ourselves.1
Outsourcing - the modern methodology of creating highly effective and competitive organizations in a highly competitive three economic centers established by the beginning Simply speaking, outsourcing - the transfer of a third party company activities previously carried out within the organization. Subject outsourcing of virtually any non-key functions in the organization today is very relevant. Fleet management, travel, personnel, logistics, even the assembly line are transferred to specialized companies. Fit for outsourcing functions are mature, those which are not expected to innovation that can give the company a strategic advantage. Therefore, companies are outsourcing to focus on their core business, rather than administer canteens, as cleaners, in the accrual of pension funds, catching a computer virus.2
The
origins of outsourcing relate to the period of confrontation in the
automotive industry of the two great managers - Henry Ford and Alfred
Sloan in the 30s. XX century. When it became clear that no firm can not
be self-sufficient, so it is advisable to pass a number of functions
to specialized firms. This was especially true of auxiliary production:
maintenance and repair of equipment, production tools, etc. The expediency
of transferring to the side of a variety of services for the manufacturing
process in the automotive industry is due to several factors:
• The technological complexity of the car production process;
• High cost of the restructuring of production lines;
• increasing competition in the international automotive market;
•The process of economic globalization;
• Increased demands for quality.
According
to analysts, the company is now two-thirds of Ford parts and services
ordered on the side (at 100% independent production of parts and vehicles
at the time of its inception), and many computer companies (in particular,
Dell and Compaq) switched to 100% of production outsourcing .
In 1990. Some theorists management argued that the most important factor
in maintaining competitiveness is the division of functions on the major
and minor, and then transfer all the secondary functions of a specialist
in this field. This idea was not new, but it was definitely one of those
"whose time has come. "Discussions on this subject became
more heated, and in the course of these disputes was born the concept
of virtual organization. According to the theory underlying the virtual
organization, any function that is not the main, should be transferred
to an external expert in the field.
Many scientists believe that outsourcing was developed in connection
with the development of information systems and technologies, especially
in activities related to programming, network administration and support
of information systems in general.
The relevance of this work caused by the increasing development of outsourcing
as one of the most interesting and rapidly developing approach to doing business.
The purpose of the study - to justify the benefits and the possible economic effects of outsourcing in the activities of commercial firms.
The main objectives of the study as part of the subject:
- Describe the concept of economic substance and the conditions of use
of outsourcing in today's business;
- To analyze the benefits of outsourcing;
- Classify the existing forms and types of outsourcing;
- Justify the use of outsourcing in terms of improving the efficiency
of the enterprise;
- Show positive and negative aspects of use of outsourcing
1. The concept of outsourcing
1.1 The theory of outsourcing
Almost in all sources expression outsourcing means "outside",
"out the borders." This is could be:
1. Using the services of outside companies to perform their tasks.
2. Rejection of the own business processes and purchase services to implement this
business process in other organizations.
3. Using an external organization for processing banking and other financial data in commercial transactions.
4. Attracting external
resources to solve their own problems (for example, development projects).
5. Transfer of production from the region with more expensive labor force
in the region with less expensive to reduce costs.
6.
Extracting data from external sources (as opposed to obtaining data on their
own).
7. The conclusion of contracts for works with outside firms that have no union.
8. The transfer of the companies operations
9. Using a
temporary employee without an employment contract with him (sometimes mediated
by a specialized agency).
10. Maintenance and repair equipment of the company by the external experts .
11. Cooperation.
12. Application of restriction of their own production activities, when
the organization stops to engage itself in any direction (kind of) activity and
sends it to the outside performers.
13. Adoption of organizational solutions, which consists in the distribution
functions of the business system in accordance with the principle of "leave
yourself only what I can do better than others, to external performer that he
is doing better than others."
14. Transfer internal
From these definitions it is clear that the the horizon of the use of outsourcing has no borders: manufacturing, services, finance, information technology and systems, development strategies, human resources, etc.3
But in any business must be defined parameters and criteria.
It should also be noted that in the scientific literature meets a number
of terms similar to outsourcing:
shrinking - the reduction, compression of the organization;
downsizing - reduction of the organization;
deleyering - limiting the number of management levels;
spin off - a selection of business units;
externalization - the transfer of control over the implementation of any function to
the company, which specializes in this area.
However, they represent only a special case of application of the methodology of
outsourcing.4
Sometimes, instead of the term "outsourcing" the term "Facilities
management" is used. Outsourcing means an increase in value, and facilities management
agreement simply shifts the responsibility for personnel management, property
and equipment for another organization. For example, if a company wishes
to transfer only part of the functions of the IT department who uses the
old or legacy systems, including staff employees,
The application of outsourcing companies develop their own forms, which
can be classified as follows:
- The full (maximum) outsourcing
This term is used to describe the contract by which staff, and possibly assets related to the the basic of the company (in fact 90% of such activity), such as information technology or finance, sent to the service provider for the time of the contract.
- Partial (selective)
outsourcing
This form outsourcing may appear only in the manufacture of various high-value
products (eg household appliances).
In addition, partial outsourcing may include a particular package redirection
functions to another firm or created for this purpose subsidiary, as the experience
that they have accumulated in certain areas of production, gives some
Use of the opportunities outsourcing
In accordance with this agreement, much of the division of functions is managed
by the client.
- Collaborative outsourcing
The term "collaborative
- Intermediate outsourcing
This kind of outsourcing occurs when an organization transfers the management
of their systems and platforms to a third party, believing that its own IT
professionals are able to develop new systems. An organization planning
to implement an intermediate outsourcing,
- The transformational outsourcing
Unlike the intermediate outsourcing, the organization invites a service
provider that fully reorganize work units, developing new systems and creating
a solid base of knowledge and skills, which then passes to the customer. The
transformational outsourcing is different from the full only in that the transition
of employees and assets is not final - at the end of the project the client regains control and
takes its responsibilities. For many, this sounds like the usual services
of a consultant. The only difference is that the transformational
- Outsourcing of joint ventures
Outsourcing involves the creation a joint venture of the new company for future
business opportunities. Staff and assets of the client will then be transferred to
this joint venture, not the service provider. The aim would not only improve
the quality of transferred unit, but, more importantly, the development of
products and services that can be sold to a third party. Then the customer
and the provider share the profits earned by the new company. Thus, the service
provider will be able to fully utilize their capabilities to create systems,
and the client will share with them the costs of developing new software. The
joint venture takes advantage, using specialized knowledge of their customer market. Some
goods and services of the joint venture will be developed using the opportunities that
have arisen due to conclusion of agreements for the full outsourcing.6
In the world of business practice used by many different types of outsourcing, but they are all based on very simple idea. Its essence lies in the fact that any company, whether it's a small bakery or an international corporation specializes only in a limited number of processes. All other processes are not its specialization, which means that the company is unlikely to be able to implement them effectively. In terms of building the ideal business process, management of all non-key business functions is more profitable to give a service provider - a third-party companies that can do them better and cheaper. Let's consider a few basic types of outsourcing7
1. Business Process Outsourcing8
In the outsourcing industry, the term "business process outsourcing"
describes the range of secondary technological processes which structure is
constantly changing. Typically, this
2. IT Outsourcing
Currently, the term "IT - outsourcing" mean any transfer of the
execution of IT processes outside the companies. By IT processes
IT outsourcing became popular due to the development of information technology
in the late twentieth century. Most companies, both small and large, it
is advisable to entrust the business to ensure their operation of IT support to
specialized companies. This saves time and money. It should be noted that
IT outsourcing is the most used form of outsourcing in the world due to high rates
of development of computer technology.
3. Outsourcing of production and economic
Production and economic outsourcing - one of the most common types of outsourcing, in
which the care of the operation of real estate, cleaning services, nutrition workers, transport
park management companies, and other goods inventory services . etc. fall on
the shoulders of outsourcing companies.
4. Industrial (or manufacturing) outsourcing
There is an industrial (or manufacturing) outsourcing,
Release from a number of labor-intensive and non-core operations, makes it
possible to focus on developing new products or services and, if necessary,
quickly and painlessly restructure the production process.
The main advantages of the industrial (manufacturing)
5. Accounting outsourcing
Accounting outsourcing - one of the options for accounting in the enterprise for
which has full responsibility, in accordance with Russian legislation, the
head of the company.
Theoretically and practically, the accounting company can fully perform
all functions of accounting business until the execution of bank transfers,
and exhibiting original documents counterparties.
- Outsourcing of office printing
Outsourcing of office
printing - the use of technology specialized company for office printing. The
transition to pay for a printed page. Through the use of more efficient equipment may reduce
the outsourcing company to a current operating costs for supplies and service. It assumes
the risks and costs associated with the operation of printing equipment, until
replaced in case of failure of operative repair.
For a small company, with an unstable volume of printed works, this approach can
significantly reduce the need for initial working capital. This allows the
company not to make large single costs for the purchase of equipment.
- Outsourcing as hiring – outstaffing
Quite often, different companies have a need to hire skilled workers
without legal registration. To solve this problem and turn to outsourcing
to companies that are most often recruitment agencies. There are three
types of out staffing - staff leasing (staff leasing), recruitment of
temporary staff (temporary staffing) and removing personnel from the
staff (outstaffing).
In the first case there are such relationships, when a recruitment agency
enters into an employment contract with the employee on his own behalf,
and then forwards it to work for more than 3 months. Temporary staff
is selected for the short-term projects - from one day to 3 months. Typically,
this staff recruited for a period of illness or vacation of one of the
staff, as well as administrators and support staff at exhibitions, fairs
and conferences. Withdrawal of staff for the state means that the recruitment
agency chooses not staff, and draws in his State of the existing employees
of the client, which then remain at the same workplace. "
- Outsourcing of marketing
Outsourcing of marketing - is the transfer of functions of marketing company
specializing in this field. By outsourcing
The advantages of outsourcing marketing:
- Cost savings on maintenance and management of the marketing department;
- The narrow specialization of marketing specialist allows the customer
company to not only get results, as well as to solve specific problems;
- Reduces the likelihood of poor-quality solution;
- Outsourcing of marketing gives a company additional competitive advantages.
Outsourcing services for state power bodies and local
government
In Russia, outsourcing, in general, demanded for small and medium businesses,
as well as enterprises at the stage of formation and rapid growth.
Dynamic market every day poses new challenges in business. To provide a good
level of profits, entrepreneurs have to cut costs. One way to save money - to
request part of the work to external performers -
In the area of support and development of small and medium-sized businesses:
• The organization and conduct of research and analytical work in
different directions and topics related to the development of small
and medium-sized businesses;
• Preparation, organization and conduct promotional activities (round
tables, conferences, etc.) of subjects of entrepreneurship (including
youth and innovative direction, as well as foreign economic activities
of small and medium-sized businesses);
• Preparing, organizing and conducting training activities, as entrepreneurs,
and representatives of government and local governments, and organizations
supporting infrastructure;
• Development of regional programs to support and develop small and
medium-sized businesses that contain innovative mechanisms and tools
to support, as well as monitoring and feedback;
• Development and implementation of programs and activities to develop,
support and development of infrastructure organizations to support small
and medium-sized businesses;
• Development and publication of practical guides and brochures, teaching
materials in some areas.
In the framework of administrative reform:
• Developing and control of operations federal, state, municipal, special
programs, including departmental;
• improving the quality and effectiveness of government. Implementing a
quality management system for regional and municipal administration in
accordance with international standards;
• regulation and standardization of performance of public functions and public
and municipal services;
• improving the quality and availability of public and municipal services;
• Improving management of subordinate organizations;
• optimization of functions of the executive branch (changes in the structure of
executive power on the basis the construction of of functional units );
• expert review of normative and legal acts;
• Design, creation and development of multi-functional centers for the
provision of public and municipal services .
The reform of public service:
• regulation of the interaction between government
officials of various government agencies in the performance of official
duties;
• mechanisms of interaction between the civil service at federal and
regional levels, as well as public service with the municipal service;
• mechanisms for independent experts and civil society assessment
(audit) the impact of the professional performance of public servants;
• institutional mechanisms to ensure the objectivity of the selection
of independent experts in the Commission on Public Service, created
in the apparatus of government;
• Information management systems in the public service (a system of
personnel management, work planning and evaluation of civil servants);
• mechanisms for combating corruption in the public service;
• Ensure compliance and relationship goals and objectives of government
regulations and officials of public servants;
• ensuring compliance with regulations of officials of public servants
administrative regulations of state agencies;
• Electronic information systems planning, regulation and monitoring
of professional performance of public servants based on the performance
and effectiveness;
• A system of indicators for assessing the impact of the professional
performance of public servants;
• program and project objectives and principles of organization of
public servants
In the framework of public-private partnership:
• Development of concepts of public-private partnership for the RF subjects
and municipalities;
• Strategy development and implementation of mechanisms for public-private
partnership;
• marketing strategies of the RF subjects and municipalities;
• the concept of socio-economic development of the RF subjects and municipalities;
• Attracting investment in the RF subjects and municipalities on a contractual
basis;
• A program of development of investment activity for the RF subjects
and municipalities.
In the area of investment:
• assessment of investment potential;
• attracting investment;
• looking for a strategic investor;
• assessment of the economic and other types of investment efficiency;
• legal support.
In the development and implementation of projects:
• Analysis of market and competition;
• Identification and assessment of target customers;
• organization of economic activity;
• expert review the effectiveness of projects;
• legal analysis and support.
In the area of strategic consulting services:
• Development of corporate strategy;
• Develop policies and programs of socio-economic development of the
Russian Federation;
• Business Seminar "Managing business value."
- Outsourcing of call-center9
Every year the number of call-centers (contact centers) increases. Wishing
to use the services of call-center ,business leaders facing a choice - it
is more profitable, more correctly, it is wiser: the organization of call-center in
the company or take advantage of outsourcing call-center?
In the case of the term to call-centers for
• Rent the organization of working time of call-center operators;
• Rent Organization jobs call-
• Rent the functional organization of call-center equipment.
The advantage of outsourcing call-center:
• reducing the costs of recruiting and training staff;
• efficiency;
• reduction of costs;
• systematization of relations call center and other business unit
In brief, we should list
main advantages of outsourcing:
1. Reduce overhead costs (rent, maintenance and transportation costs, the
audit and financial statements, etc.).
2. Professional responsibility provided by the outsourcing company.
3. There is no need to monitor all changes to legislation relating to the
functions transferred to an external organization.
4. Training staff costs associated with the selection of personnel and the
need for context and continuity, become care of contractor.
5. Reduce costs associated with obtaining the tax and legal advice.10
Outsourcing
is not panacea for everybody and it has its own disadvantages, such
as not every company will entrust internal information outside the organization.
Second disadvantage is that transfer to the outsourcing of certain functions
can lead to a loss of some activities, which together with the main;
give the organization a success in the consumer market.
Transferring to the outsourcing of many functions, the organization
can increase costs. The excessive enthusiasm in outsourcing can completely
lead the outsourcing consumer to full dependence on foreign firms. Also
nobody can be insured against losses due to low quality. In addition,
the company-outsourcer, as well as any other, can be ruined, and therefore,
the contracting authority will have to use the services of a new outsourcer,
and it is additional moral and material costs. And one more significant
factor is the lack of control over the activities of organizations or
specialists who provide services.11
1.2 The process of outsourcing
A process approach to activities of the organization makes it possible to
choose the functions that can be brought outside the organization without
affecting its strategic position and competitiveness. For the outsourcing
of certain functions important how close they are to the main activities
of the organization and strategic importance. Traditionally, outsourcing
However, there are situations when core functions outsourcing can be very helpful. For example, if the firm is significantly behind their competitors, it may transfer some of the main activities to the outsourcer to purchase the necessary knowledge. In addition, it is possible that the company does not have enough necessary resources and technological capabilities to enter the just emerging and rapidly developing markets. In that case it is possible interaction with firms working in the same market who was considered before as a competitor13
The methodology of outsourcing consists in the selection of milestones of business processes, just those that make up core functions of the organization. The number of key functions can be relatively small, and all other business process may be transferred to outsourcers, and it concerns not only supporting, but the main activities of the Organization. The following steps without affecting its future help to determine what business processes must be "inside" of the company:14
• Accurate description of the process and resources used
• evaluating the effectiveness of the process
• Need for continuous improvement
There are a lot of benefits from using outsourcing services:
1. Ability to focus resources and attention on core business
2. Reduction of investment in functions that are not core for the business.
Not the basic functions do not require capital investment, and funded under
the current operating expenses, which, in particular, improves the return
on invested capital.
3. Specialized outsourcing
4. Volume of work provided by an outside contractor, easily scalable, meeting
the demands of a growing or decreasing
5. The process of restructuring the company - a client becomes smoother, as
the support functions are controlled by a professional, responsive to changing
requirements.15
Nevertheless it is often not enough to make a definitive decision to bring or not the outsourcing company. Therefore, one of the main criteria for deciding about the using outsourcing for companies in most cases is its economic justification. The economic justification is the comparison of the cost of production of goods and services on their own with their purchase.16In practice, to evaluate their own cost, they should take into account only those that can be reduced during the outsourcing:
- staff costs;
- the cost of production areas;
- the cost of the means of production;
- the cost of support means of production;
- Management costs.
Next step, compare the cost of purchasing functions outsourced and the cost of performing these functions natively.
If the ratio of costs of their own performance to the cost of purchasing > 1, so in this case, you should prefer the use of outsourcing. If <1, the improvement of their own division is preferable, since the transfer of functions to serve the information needs to a third party artist does not bring benefits in terms of reduced costs.17
2. Outsourcing in the World
2.1 Outsourcing in General Motors Company
Alfred Sloan one of first in the world rated and practically realized on a large scale the advantages of cooperation. The crown of the project was the Sloan car production, based on co-operation of highly specialized plants. In the 40's. XX century. methodology of Sloan adopted the company Ford Motors and Chrysler. Thus, the took shape "Big Three" U.S. auto industry, whose share in the 60s. in the production of passenger cars accounted for about 95%, in the production trucks - about 80%.
Outsourcing in the "Big Three" has three levels of vertical integration.
The first level - production at specialized factories of companies (in 1965 - 250 plants)
The second level - cooperation factories of "Big Three" with
the companies supplying ready for kitting car parts, components and aggregates (about seven
thousand firms).
The third-level factories of the second-level are
cooperating with companies supplying various products and materials.
The amount of such enterprises is more than 100 thousand of which only two thousand
enterprises have the number of employed over 250 people, small businesses make
up the majority.18
Thus the share of outsourcing accounted for 66% of the total cost of the automobile industry. The level of labor productivity in the automotive industry in the USSR was six times lower than in the U.S. auto industry.
Slowly the methodology of work in the area of outsourcing, applied by the U.S. car companies began to use and other American industrial companies. Nowadays, about 50% of U.S. companies use outsourcing in different areas: the main production equipment maintenance, transportation, supply, maintenance of warehouse, distribution, etc.
Thus, Western production is characterized by the highest degree of specialization. Practically all Western production differs by maximally simple structure; the majority of operations delivered on outsourcing. Outsourcing is the result of building an effective development strategy based on industrial cooperation and long-term mutually beneficial partnership. The use of outsourcing as a fundamentally new strategy for the management is actively used by leading corporations in the world.
Today, it is the largest organization, such as, Ford, British Petroleum, Procter & Gamble, Dell, Exel, and others due to the use outsourcing achieved the most impressive economic results: an increase in profit almost doubled by reducing the organizational and production costs, improving the overall efficiency of their companies.
2.2 Outsourcing in Russia
Outsourcing in Russia is much younger than the western and has about 15 years.
Birth of entrepreneurship in Russia was held in extremely bad conditions, when the methods of competition threatened to not only businesses but also the lives and health of its owners. So the first task of the Russian business has become the task of economic and physical survival.Thus, the pioneers of outsourcing in Russia are private security companies, which allowed hundreds of companies to protect their business better and more professional than a few full-time security guards. The first private security companies appeared in the early 90s, some of them successfully, there is still turned into a quite large multi-disciplinary company specializing in the field of physical security of person and objects, commercial security and technical protection of objects.19
Progressively the business became more civilized and advertising become increasingly important .Advertising specialists catastrophically lacking that created favorable conditions for the formation of advertising agencies. The cost of attracting advertising agencies were not less, and in many cases more than the execution of works by his own department, but it was the only way to create high-quality advertising.
Following the advertising agencies emerged PR-agencies and research companies.
By early 2000 Russian business has recovered from the 1998 default in
Russia, many entrepreneurs have returned, and began a new phase of enthusiasm
with modern business technology.
The relatively stable economic situation in Russia has contributed to the emergence of new services in the outsourcing market. The main of them are IT outsourcing, staff outsourcing and the outsourcing of accounting.
The first offered in the market functions of IT outsourcing were technical maintenance of office equipment and system administration.
Transfer of maintenance and system administration to outside organizations significant savings to companies with a small number of computers and users, but at the same time created significant risks to information security. This represented a serious threat to large companies, so they preferred to use a full-time employees.
Even in large companies, for which the Service of IT department is a complementary, sometimes used IT outstaffing.In most cases, outstaffing served to create a project team in a relatively short period of time.
Outsourcing of accounting caused the greatest concern among owners and managers of Russian enterprises, but as more and more offices of foreign companies gave their accounts to third parties, some Russian companies have also made their choice in favor of outsourcing.
It is logical to assume that the list of services provided by outsourcing companies, will only expand, creating new opportunities for mutually beneficial cooperation.
Unfortunately in Russia, outsourcing has not yet become popular. The economic situation established in Russia, inhibits the formation and development process - namely, imperfect legislation and the mentality of the business relationship, which not credible. These factors further increase the possibility of losing control over the process, failure the obligations , information leakage. It is also important that Russia has some of the activities are semi-legal nature (accounting), which further complicating the situation.
These circumstances are taking place in our economy, but despite that, over the past 3-4 years the situation with the spread of outsourcing began to change for the better. This can be explained by the following reasons:
During this time, there were significant qualitative changes in the economic and social life; many companies have tried, Other ways to optimize the production alternative to outsourcing, while business competition is not only not weakened but got stronger.
But despite the fact that outsourcing in Russia has not received such an extension in the West, there are several bright examples:
- «LUKOIL" and the "Yukos" singled out its drilling division into separate company "LUKOIL-drilling" and "Siberian Service Company", without leaving a controlling interest in participation in these companies;
- «LOMO" defense enterprise engaged in production and sales of opto-mechanical and opto-electronic devices, abandoned the domestic manufacture of printed circuit boards after the analysis has shown that the existing plant equipment is outdated and requires significant modernization;
- «Irbitsky Motorcycle Plant," has sold automaton and smiting
department;
- Company "August", a manufacturer of women's clothing under the brand name OGGI, has reserved only for model development, production planning, procurement of materials, accessories and clothing for sale. Production of most clothing is carried out outsource and executed numerous small and medium enterprises of light industry.20
The conclusion
In
difficult economic situation
One reason for the spread of outsourcing - the complication of of business processes, creating an unacceptable burden for the company. Passing the same painful duties to third-party professionals, the firm can concentrate on its main type of occupation. In this case there is good reason to hope that the execution of certain functions by the contractor will be better and less expensive than keeping them within the company.
In such a scheme of cooperation is a very important issue of managing and interacting with the outsourcer. Outsourcing involves a safe and guaranteed execution of functions. Because of the undeveloped legal basis, only the quality of their services determines whether to continue the cooperation. If your partner will do their job low quality, the customer-company simply find another performer.
The benefits of outsourcing include:
- reduction in the cost functions transferred outsourcer. Outsourcer performs execution of tasks assigned to it at a lower cost due to specialization in a narrow field, and due to the effect scale achieved through the execution of similar operations for multiple clients;
- improve the quality and reliability performance of outsourced functions, as outsourcer in solving similar tasks accumulates experience;
- Greater concentration on core objectives of the company, which makes it possible to focus on meeting customer needs and technology development;
The disadvantages are:
- The risk of information leaks during transmission of several important functions and the emergence of a new competitor that uses experience and knowledge of the company, ordering outsourcing;
- Loss of control over their own resources, a partial isolation from the leadership of the company
- Probability of collision with the need to urgently look for new partners, or start their own act, before were upon outsourcing
In Russia outsourcing has not yet received such a powerful development, as in the rest of the world. But gradually comes to understand that outsourcing is an effective way to reduce costs and to concentrate on running their core business.
A number of factors is still prevents widespread use of outsourcing. Our companies are afraid to trust the information to strangers, fear of losing control over the situation. Difficult to find a partner to companies in which you can be ensured, and the imperfection of the laws does not always guarantee the conditions of the agreement.
In our country there is one more feature of the business: Many companies do not just care about privacy, but are not interested in any, that may be openness, because accounting is often is semi-legal nature.
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1 Hira, Ron; Hira, Anil; Dobbs, Lou (Foreword by). Outsourcing America : The True Cost of Shipping Jobs Overseas and What Can Be Done about It. Saranac Lake, NY, USA: AMACOM Books, 2008. p 250.
2 Outsourcing: A Strategic Alliance special type. Berlin. Eric Schmidt, 2007
3 Outsourcing
Dilemma: The Search for Competitiveness Second Edition
J. Brian Heywood 2008
4 Power, Mark John; Desouza, Kevin Clyde; Bonifazi, Carlo. Outsourcing Handbook : How to Implement a Successful Outsourcing Process. London, , GBR: Kogan Page Ltd., 2007
5 OUTSOURCE: Competing in the Global Productivity Race by Edward Yourdon Prentice Hall/PTR 2007
6 Business Process Outsourcing. Problems and solutions F.N. Filina 2008
7 The Outsourcing Enterprise: From Cost Management to Collaborative Innovation Leslie P. Willcocks, Sara Cullen, Andrew Craig 2011
8 http://www.upcoo.ru/
9 Financial newspaper №27 01.07.2010 and №28 08.07.2010
10 http://www.mealtime.ru/
11 Wanna, John; Butcher, John; Freyens, Benoit. Policy in Action : The Challenge of Service Delivery. Sydney, NSW, AUS: UNSW Press, 2009. p 305.
12 Outsourcing and outstaffing - high-tech management Anikin B.A., Rudaya I.L_2009
13Aksenov, E., I. Alshutler: Outsourcing, 10 сommandments and 21 tool 2008
14 Cullen, Sara. Contract Scorecard : Successful Outsourcing by Design. Abingdon, Oxon, , GBR: Ashgate Publishing Group, 2009.
15 Cullen, S. (2007) ‘Outsourcing Success’, Sourcing and Vendor Relationships Executive Report, Cutter Consortium, December 2007.
16 http://www.outsourcing.ru/
17 16.10.2009, Zubanov Arthur. Consulting Center of Financial Academy under the RF Government
18 CFO Insights: Achieving High Performance through Finance Business Process Outsourcing S. Clements, M. Donnelan
19 http://www.rusconsult.ru/cms-
20 http://www.business-magazine.
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