Theoretical Basis of Outsourcing
The present paper contains the analysis of the existing classifications of types of outsourcing. It demonstrates that these classifications are based on managerial and organizational criteria without taking into account the economical nature of outsourcing. Differences between outsourcing and purcha...
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irk-123456789-1234012017-09-04T03:03:12Z Theoretical Basis of Outsourcing Kovalyov, A.V. Management The present paper contains the analysis of the existing classifications of types of outsourcing. It demonstrates that these classifications are based on managerial and organizational criteria without taking into account the economical nature of outsourcing. Differences between outsourcing and purchase of products and services are described. A new approach to outsourcing is proposed that is based on economical aspects of this phenomenon. New classifications of types of outsourcing based on its economical nature and the types of interaction between companies are given. A list of methods of payment for outsourcing services is applied. У статті розглянуто існуючі класифікації видів аутсорсингу, доведено, що вони досліджують лише управлінську та організаційну складові аутсорсингу. Виявлено відмінності аутсорсингу від покупки товарів і послуг. Запропоновано підхід до аутсорсингу як до економічного феномену, побудовано класифікації видів аутсорсингу за економічним змістом і за способом організації взаємодії між підприємствами. Описано механізми взаємодії підприємств при аутсорсингу. В статье рассмотрены существующие классификации видов аутсорсинга, доказано, что они исследуют только управленческую и организационную составляющие аутсорсинга. Выявлены отличия аутсорсинга от покупки товаров и услуг. Предложен подход к аутсорсингу как к экономическому феномену, построены классификации видов аутсорсинга по экономическому содержанию и по способу организации взаимодействия между предприятиями. Описаны механизмы взаимодействия предприятий при аутсорсинге. 2013 Article Theoretical Basis of Outsourcing / A.V. Kovalyov // Економічний вісник Донбасу. — 2013. — № 4 (34). — С. 146–149. — Бібліогр.: 7 назв. — англ. 1817-3772 http://dspace.nbuv.gov.ua/handle/123456789/123401 334.752 en Економічний вісник Донбасу Інститут економіки промисловості НАН України |
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Management Management Kovalyov, A.V. Theoretical Basis of Outsourcing Економічний вісник Донбасу |
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The present paper contains the analysis of the existing classifications of types of outsourcing. It demonstrates that these classifications are based on managerial and organizational criteria without taking into account the economical nature of outsourcing. Differences between outsourcing and purchase of products and services are described. A new approach to outsourcing is proposed that is based on economical aspects of this phenomenon. New classifications of types of outsourcing based on its economical nature and the types of interaction between companies are given. A list of methods of payment for outsourcing services is applied. |
| format |
Article |
| author |
Kovalyov, A.V. |
| author_facet |
Kovalyov, A.V. |
| author_sort |
Kovalyov, A.V. |
| title |
Theoretical Basis of Outsourcing |
| title_short |
Theoretical Basis of Outsourcing |
| title_full |
Theoretical Basis of Outsourcing |
| title_fullStr |
Theoretical Basis of Outsourcing |
| title_full_unstemmed |
Theoretical Basis of Outsourcing |
| title_sort |
theoretical basis of outsourcing |
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Інститут економіки промисловості НАН України |
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2013 |
| topic_facet |
Management |
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http://dspace.nbuv.gov.ua/handle/123456789/123401 |
| citation_txt |
Theoretical Basis of Outsourcing / A.V. Kovalyov // Економічний вісник Донбасу. — 2013. — № 4 (34). — С. 146–149. — Бібліогр.: 7 назв. — англ. |
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Економічний вісник Донбасу |
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AT kovalyovav theoreticalbasisofoutsourcing |
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2025-07-08T23:36:06Z |
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2025-07-08T23:36:06Z |
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1837123789953957888 |
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146
Економічний вісник Донбасу № 4 (34), 2013
Outsourcing (transfer of business processes for
performance party customers) was recently accepted as
a highly effective form of business organization, enables
companies to reduce costs and to focus on the most
profitable activities for it. As an example, you can specify
a widespread rejection of clothing suppliers from
developed countries from the ownership of garment
factories in favor of placing orders for the production of
finished products from specialized companies located in
countries with low labor costs. In fact, the clothing
suppliers of its producers have become the owners of
trade mark and design technologies that do not lead
productive activities.
Abroad, and later – in Ukraine, a large amount of
literature on outsourcing – as a science that examines its
management and organizational aspects as well as a
mathematical model for the interaction of the customer
and the operator, and practical advice to business
managers and the use of Outsourcing in the daily activities
of the enterprise [2; 3; 5]. However, the author has a
great number of questions. The most important of these
issues are:
– What is the difference between outsourcing and
the other forms of cooperation between enterprises
(purchasing goods and services for industrial needs,
tolling production contract). This question is of both
theoretical and practical significance, since the answer
depends distribution of rights and obligations between
the parties and, in the result, there is a need for special
measures of legal regulation (as in the case of leasing);
– Nature of outsourcing as an economic phenomenon.
As previously mentioned, the focus of the existing
literature is given to organizational and managerial aspects,
however its economic essence is not adequately disclosed;
– In what form may be an interaction between
companies in outsourcing;
– How can choose to pay the operator’s services.
This article attempts to answer these questions.
Outsourcing is a method of optimization of activity
of the enterprises of customer of service, due to passing
to the external specialized organizations to Performers
(to the external providers of services – the operators of
outsourcing) of non-core functions, ancillary,
supporting or concomitant production of processes,
necessary for work of the enterprise, partly or fully,
that allows to concentrate the efforts of the enterprise
on the basic article of activity, to increase the business
efficiency [1].
An operator of outsourcing is the specialized
organization Performer (an external provider of services
is an operator of outsourcing), rendering the necessary
services to the enterprises in the area of its specialization;
having or hiring a skilled staff, applying the advanced
effective forms and methods of work, technical means
and technologies, providing the high quality of the given
services, the supplied products, the executable works
and the separate functions, partly or fully [2].
Advantages:
1. The decline of the cost of the realization of
business process, namely:
– the reduction and control of costs (as a rule,
cheaper, than the salary to a staff unit);
– the economy for the tax savings to a staff unit;
– the release of the internal resources of the
company for other aims (a synergetic effect is possible).
2. The increase of the quality of the got products
or services:
– focusing of the company on basic activity (both
the firm-customer and the performer – a synergetic effect
is also possible here);
– the use of the specialized equipment, knowledge,
technologies;
– the decline of risks, related with the realization
of business process;
– the use of competition at the market of performer;
– the reduction of the influence of uncontrollable
factors (shortage of stuff);
– the division and partial passing the risks to other
company;
– the additional access to finances (at the fund
market) is the increase of the investment attractiveness
of the enterprise.
The main source of the cost saving with the help of
outsourcing is the increase of the efficiency of the
enterprise generally and the appearance of possibility to
free the proper organizational, financial and still human
THEORETICAL BASIS OF OUTSOURCING
UDC 334.752
A. V. Kovalyov,
PhD (Economics),
The State Higher Education Establishment “Pryazovskyi State Technical University”,
Maryupol
A. V. Kovalyov
Management
147
Економічний вісник Донбасу № 4 (34), 2013
resources to develop the new directions or to concentrate
efforts to the existing, requiring enhanceable attention.
Basic types of outsourcing [3].
1. Outsourcing of business process. In industry of
the outsourcing the term of “outsourcing of business
process” is characterized by the complex of second-rate
technological processes, the composition of which
changes constantly. Usually the finances and book-
keeping, the labour resources, the supply, the extra charge
and the account of settlings, the internal audit, the
calculation of taxation, the centers of maintenance of
users and the row of specific processes characterized
for this industry are included in this complex.
2. IT-Outsourcing. Presently under the term of
“IT-Outsourcing” is implied the transmission of execution
of some IT-PROCESSES to the external companies. To
IT-PROCESSES take the processes of planning,
development, introduction, accompaniment and
development of IT-infrastructure of company.
3. Outsourcing of production and economic.
Outsourcing of production and economic is one of the
most widespread types of outsourcing for which all of
the anxieties of exploitation of the objects of the real estate,
cleaning up of the apartments, working feed, the
management of a transport park of the enterprise, taking
of inventory of commodity and other attendant work etc.
are the duties of outsourcing companies.
4. The industrial (or production) outsourcing. There
is an industrial (or manufacturing) outsourcing, when
the company is more profitable to attract outsourcer than
to conduct the production process on their own. The
electronics manufacturers and telecommunications
companies do so often in such a way.
A release from the row of labour intensive and
non-core operations enables to concentrate for the
development of the new products or services, and if it is
necessary to reconstruct a production process quickly
and painlessly. Basic advantages of industrial (production)
outsourcing are a decline of prime cost of production
process, upgrading of quality and reliability of the passed
functions, the access to the new resources. It is achieved
through the implementation of the company – of outsourcer
of more or less similar operations for itself and for plenty
of clients, using the modern technologies.
5. Accounting outsourcing. Accounting outsourcing
is one of the variants of providing the record-keeping at
the enterprise for which the head of the enterprise carries
the complete responsibility, in accordance with the
legislation of Ukraine. In this embodiment, in order to
ensure the accounting for its business and provide the
necessary accounting and budgetary funds are used
by a specialized company. The forms of collaboration
can be very various, beginning from forming of a “zero
accounting” and up to the regular collaboration on a daily
basis.
Theoretically and practically, the accounting
company can fully perform all functions of accounting
company up to the execution of bank payments and
primary documents counterparts. However, this does not
exclude the possibility of construction a fairly complex
and flexible business processes using the external
companies and their employees to achieve the maximum
efficiency.
6. Outsourcing of office printing. Outsourcing of
office printing is the use of technique of the specialized
company for an office printing. The transition to pay for
a printed page. Due to the use of the more productive
equipment, the outsourcing company may reduce the
current operating costs of the expense materials, services.
It assumes risks and expenses, related to the exploitation
of the printing equipment up to the replacement if it be
impossible of operative repair.
For a small firm, with the unstable volume of the
published works, such approach can substantially reduce
a requirement in an original circulating capital. It allows
a company not to make the large valid for one occasion
of the expenses of the acquisition of technique.
7. Outsourcing as hiring a staff – (оutstaffing).
Different companies enough often have a necessity to
hire the skilled personnel without legal registration.
8. Outsourcing of marketing. Outsourcing of
marketing is the transmission of functions of marketing
of company, specializing in this field. In that case the
companies refer to the outsourcing of marketing when
the companies is more profitable to solve marketing tasks
using the services of the strange specialized company.
The choice of marketing activities for a transmission for
outsourcing is unique for every company. It depends upon
the specific of activity of company, the presence in the
state of the enterprise of enough number of own
marketing specialists and the level of their qualification.
The advantages of outsourcing of the marketing:
– Economy of the cost savings for maintenance
and management by the marketing department;
– The narrow specialization of specialist of
marketing allows the company Customer not only to get
a result and also to solve the specific tasks;
– The probability of receipt of the poor-quality
solution of task goes down;
– Outsourcing of marketing gives the company
the additional competitive advantages.
9. The services of outsourcing for the public and
local self-government authorities.
10. Outsourcing of call-center. Every year the
number of call-centers (contact centers) increases.
Wishing to take the advantage of services of call-center,
A. V. Kovalyov
148
Економічний вісник Донбасу № 4 (34), 2013
A. V. Kovalyov
the leaders of the companies have a choice – what is
more profitable, more correct, more reasonable: the
organization of call-center in the company or take
advantage of outsourcing call-center? For many executives
the use of outsourcing business in business and including
in regard to a call-center is unusual. But distrust of
outsourced call-center disappears as soon as the responsible
persons meet closer with the high technological level of
equipment centers and understand that the creation of
such technical base for itself is impossible and unjustified
economically.
The forms of outsourcing [4].
1. Full (maximum) outsourcing. The term is used
for denotation of the agreement according to it the state
of employees and possibly the assets, related to the basic
activity of the enterprise (in fact up to 90% of such
activity), such as the information technologies or finance
are passed to the provider of services for the time of the
action of contract.
2. Partial (selective) outsourcing. This form of
outsourcing may be shown only at making of different
expensive products (for example, domestic technique).
3. Joint outsourcing. The term “joint outsourcing”,
introduced by the British company EDS, describes one
of the options for outsourcing, in which the parties to
the agreement are partners. Recently, however, some
experts use the term to describe subcontracts which
involve some service providers.
4. The intermediate outsourcing. This type of
outsourcing takes a place when the organization transfers
the management of their systems and platforms to a
third party, supposing that its own specialists of IT are
able to develop the new systems. The organization,
planning to carry out intermediate outsourcing, as a rule,
demonstrates the high level of trust to the capabilities of
the specialists of IT.
5. Transformational outsourcing. Unlike intermediate
outsourcing, the organization invites the provider of
services which will reorganize the work of subdivision
fully, developing the new systems and creating the reliable
base of knowledge and skills, which passes to the client
then. Transformation outsourcing differs from full one
only that the transition of staff and assets is not final up
to the end of the project a client finds the complete
control and takes the duties again. For many people it
sounds as the ordinary services of consultant. The only
difference is that the transformational outsourcing the
supplier usually operates sufficiently regardless of the
personnel of the client. Therefore it is not surprising,
that there are only small number of the real examples of
transformation outsourcing.
6. Outsourcing of joint ventures. Outsourcing of
joint venture involves the creation of the new company
for the use for the future business opportunities. The
staff and assets of client will be transferred to this joint
venture but not to the provider of services. The purpose
will be not only to improve the quality of work of the
translated subdivision but that is more important, the
development of commodities and services which can be
sold to the third party. Then the customer and the
provider of services will share the income earned by the
new company. Thus, the provider of services will be
able fully to utilize the possibilities for the creation of the
systems and a client will share the charges with him for
the development of the new software. A joint venture
gets advantages of using the specialized knowledge of
the client about the market. Some goods and services of
joint venture will be developed using the opportunities
which have arisen due to agreements for the complete
outsourcing.
Proposed in this paper include the classification of
outsourcing allowed to outsource certain activities that
previously were not included in outsourcing, and
considered as a separate, and to identify specific, has
not been studied, the type of outsourcing – the mutual
(two-way). The author’s point of view, is that it’s makes
it possible, on one hand, to has proper understanding of
the economic essence of the phenomenon of outsourcing,
and the mechanisms of interaction between enterprises
within the outsourcing, and on the other – has allowed
to consider a number of today’s popular forms of
business (including franchising) as a special case more
general phenomenon of resource use outside companies
(outsourcing).
The author hopes that the results obtained in this
study will be of great interest both to researchers studying
outsourcing and, more broadly, principles of interaction
between enterprises and managers to practitioners who
use outsourcing business activities run by their respective
companies.
References
1. Аникин Б. А., Рудая И. Л. Аутсорсинг и аут-
стаффинг: высокие технологии менеджмента: учебное
пособие / Б. А. Аникин, И. Л. Рудая. – М. : ИНФРА-М,
2009. – 320 с. 2. Бравар Ж.-Л. Эффективный аут-
сорсинг. Понимание, планирование и использование
успешных аутсорсинговых отношений / Ж.-Л. Бра-
вар, Р. Морган. – М. : Баланс Бизнес Букс, 2007. –
475 с. 3. Клементс С. И. Аутсорсинг бизнес-процес-
сов. Советы финансового директора / С. И. Клементс. –
М. : Вершина, 2006. – 416 с. 4. Котлер Ф. Основы
маркетинга: пер.с англ. / Ф. Котлер, Г. Армстронг,
Дж. Сондерс, В. М. Вонг. – М., СПб; К. : Вильямс,
1998. – 1156 с. 5. Хейвуд Дж. Б. Аутсорсинг: в поис-
ках конкурентных преимуществ / Дж. Б. Хейвуд. – М. :
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A. V. Kovalyov
Вильямс, 2002. – 176 с. 6. Outsourcing: the creation
of highly effective and competitive organizations. Textbook.
handbook / ed. prof. B. A. Anikin. – M. : INFRA-M,
2003. – 187. 7. Aalders R. IT outsourcing. How to /
Trans. from English. – Moscow: Alpina Business Books,
2004. – 300 p.
Ковальов А. В. Теоретичні основи аутсорсингу
У статті розглянуто існуючі класифікації видів
аутсорсингу, доведено, що вони досліджують лише
управлінську та організаційну складові аутсорсингу.
Виявлено відмінності аутсорсингу від покупки товарів
і послуг. Запропоновано підхід до аутсорсингу як до
економічного феномену, побудовано класифікації видів
аутсорсингу за економічним змістом і за способом
організації взаємодії між підприємствами. Описано ме-
ханізми взаємодії підприємств при аутсорсингу.
Ключові слова: аутсорсинг, види аутсорсингу,
види взаємодії підприємств.
Ковалев А. В. Теоретические основы аутсор-
синга
В статье рассмотрены существующие классифи-
кации видов аутсорсинга, доказано, что они исследу-
ют только управленческую и организационную состав-
ляющие аутсорсинга. Выявлены отличия аутсорсинга
от покупки товаров и услуг. Предложен подход к аут-
сорсингу как к экономическому феномену, построе-
ны классификации видов аутсорсинга по экономичес-
кому содержанию и по способу организации взаимо-
действия между предприятиями. Описаны механизмы
взаимодействия предприятий при аутсорсинге.
Ключевые слова: аутсорсинг, виды аутсорсинга,
виды взаимодействия предприятий.
Kovalyov A. V. Theoretical Basis of Outsourcing
The present paper contains the analysis of
the existing classifications of types of outsourcing. It
demonstrates that these classifications are based on
managerial and organizational criteria without taking into
account the economical nature of outsourcing. Differences
between outsourcing and purchase of products and
services are described. A new approach to outsourcing
is proposed that is based on economical aspects of this
phenomenon. New classifications of types of outsourcing
based on its economical nature and the types of interaction
between companies are given. A list of methods of
payment for outsourcing services is applied.
Key words: outsourcing, types of outsourcing, types
of interaction between companies.
Received by the editors: 15.11.2013
and final form 04.12.2013
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