Efficiency assessment of outsourcing transactions

Abstract

Business development in modern conditions requires an enterprise to greater efforts in the direction of reducing costs to preserve and increase its competitive advantages. One of the ways to reduce costs is the outsourcing of non-core activities. Outsourcing involves transition to outside organizations of certain business processes that are not core to a company. Typically, the following functions are most often outsourced: accounting, legal support, IT services, transport services, marketing, etc. Currently, one of the main problems of outsourcing development is the fact that there is no clearly developed methodology for assessing the effectiveness of outsourcing and precision instruments to determine the effectiveness of outsourcing transactions. Lack of quality assessment procedures of all the effects of outsourcing can lead to inefficient solutions in this area. Therefore, in this paper there have been considered methods of determining the effectiveness of outsourcing, the basic tools used to evaluate the effectiveness of outsourcing transactions (economic and graphical methods). The study has revealed the advantages and disadvantages of existing methods of decisionmaking about outsourcing, and offers recommendations for successful implementation of outsourcing.