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OUTSOURCING AS AN ELEMENT OF INNOVATION STRATEGY OF THE BUSINESS MANAGEMENT OF SERVICE ENTERPRISES

Title


OUTSOURCING AS AN ELEMENT OF INNOVATION STRATEGY OF THE BUSINESS MANAGEMENT OF SERVICE ENTERPRISES

Authors


Ratynskyj, Vadym
Affiliation
Ternopil Ivan Puluj National Technical University 56 Ruska str., 46001 Ternopil, Ukraine e-mail: ratvadim@gmail.com Ph.D, Assistant Professor, Department of Finance, Accounting and Control

Bibliographic description:

(International)


Ratynskyj, V. (2018). Autsorsynh yak element innovatsiinoi stratehii upravlinnia diialnistiu servisnykh pidpryiemstv [Outsourcing as an element of innovation strategy of the business management of service enterprises]. Sotsialno-ekonomichni problemy i derzhava [Socio-Economic Problems and the State] (electronic journal), Vol. 19, no. 2, pp. 114-122. Available at: http://sepd.tntu.edu.ua/images/stories/pdf/2018/18rvvdsp.pdf

Issue Date

dec-2018

Submitted date


oct-2018

Publisher


Ternopil Ivan Puluj National Technical University

DOI:


https://doi.org/10.33108/sepd2018.02.114


UDC

338.45:621
JEL: M21

Keywords


management
outsourcing
enterprise
expenses
profit

pages

9

first page


114

last page


122

Abstract

Outsourcing, or less known its name, as offshoring, is a good system for many domestic industries. However, outsourcing has both advantages and disadvantages. This research was aimed at analyzing the main advantages and disadvantages of promoting outsourcing in the flow of business and economy of Ukraine in the field of managing the activities of service enterprises. Using the random sampling technique, 20 executives and directors from selected 20 medium-sized enterprises of various industries in Ukraine, selected through random sampling, among the enterprises that use outsourcing elements in their activities, became participants of this study. Most of the selected companies are located in Kyiv and Lviv. Qualitative methods of in-depth interviews and discussion in small groups were used simultaneously with the selected groups of respondents. The results revealed that most respondents agreed that the benefits of using outsourcing were the ability to focus on the core business process, risk sharing and cost reduction, such as staff recruitment costs and operating costs. The disadvantages of using outsourcing include the risk of disclosure of confidential data and technologies, wrong partners, lack of customer attention and a host of hidden costs.

URI:


http://elartu.tntu.edu.ua/handle/lib/27324
ISSN:  2223-3822

Copyright owner

Socio-Economic Problems and the State
References:  1. Anikin, B. A. & Rudaya, I. L. (2009) Autsorsinh y autstaffinh: vysokye tekhnolohii menedzhmenta [Outsourcing and outstaffing: high technology management: student. Way]. INFRA-M.
2. Grigorak, M. Yu. (2012) Principles of outsourcing influence estimation on efficiency of industrial enterprises activity. [Electronic resource] Economy: Realities of Time. Scientific Journal. No. 3-4 (4-5), pp. 28-32.
3. Zagorodniy, A. G. & Party, G. O. (2009) Autsorsynh ta yoho vplyv na vytraty pidpryiemstva [Outsourcing and its impact on enterprise expenses]. Finance of Ukraine. No. 9, pp. 87-97.
4. Zorij, O. M., & Kovalenko, T. V. (2013) Osoblyvosti zastosuvannia autsorsynhu [Peculiarities of the application of outsourcing]. Economic Analysis: Sb. sciences works, Ternopil National Economic University. Ternopil: Publishing and Printing Center of Ternopil National Economic University "Economic Thought", Volume 14, No. 3, pp.18-28.
5. Zozul'ok, O. & Mikalo, O. (2009) Autsorsynh yak instrument pidvyshchennia konkurentospromozhnosti vitchyznianykh pidpryiemstv v umovakh hlobalizatsii [Outsourcing as an instrument for increasing the competitiveness of domestic enterprises in the context of globalization]. Economy of Ukraine. No. 8, pp 16-24.
6. Kalendjyan, S. O. (2003) Ob effektyvnosti autsorsynha [On the effectiveness of outsourcing]. Russian entrepreneurship. No. 8 (44), pp. 74-77.   https://doi.org/10.2307/40158182
7. Krupa, O. V. (2013) Obgruntuvannia mekhanizmu orhanizatsii autsorsynhu dopomizhnykh biznes-protsesiv pidpryiemstv mashynobuduvannia [Justification of the mechanism of organization of outsourcing of auxiliary business processes of mechanical engineering enterprises]. Bulletin of the Donetsk National University of Economics and Trade named after V.V. Michael Tugan-Baranovsky. Economic sciences. No. 3, pp. 30-37.
8. Lysyuk, T. V. & Tereshchuk, O. S. (2016) Autsorsynh yak chynnyk pidvyshchennia innovatsiinoi diialnosti u sferi turyzmu ta hotelno-restorannoho hospodarstva [Outsourcing as a factor in improving innovation in tourism and hotel and restaurant business]. Scientific journal "Scientific review". No. 6 (27), pp. 10-20.
9. Logvinova, O. P. (2013) Kryterii obgruntuvannia proektiv perekhodu pidpryiemstva na autsorsynh [Criteria of the justification of projects of transition of the enterprise to outsourcing]. Innovative economy. № 7, pp. 64-67.
10. Heywood, J. B (2004) Outsourcing: In Search of Competitive Advantages. Izd. House "William".
11. Koszewska, M., 2004. Outsourcing as a modern management strategy, prospects for its development in the protective closing market. Technical University of Lodz, Institute of World Economy and Textile Marketing.
12. S. Somjai, “Advantages and Disadvantages of Outsourcing”. Graduate School, Suan Sunandha Rajabhat University. Bangkok, Thailand. Business and Management Review, Volume 9 Number 1. July 2017.

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Socio-Economic Problems and the State, Vol. 19, no. 2

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