ESSENCE AND MECHANISM OF THE OUTSOURCING BUSINESS MODEL

This article is devoted to the current issue of developing and implementing an outsourcing business model that provides the company with sustainable competitive advantage and tools to reduce costs and increase profitability. The article examines and determines the main advantages of outsourcing, what goals can be achieved when transferring functions to a service provider, as well as the disadvantages of outsourcing and the reasons for rejecting it. Various outsourcing classifications are considered depending on various criteria, the possibilities and risks of using the outsourcing mechanism. Today, an outsourcing strategy is widespread among companies. But, despite that, there is still confusion when using close-in-content concepts that would reflect the forms of production relationships among companies. These include outsourcing, insourcing, subcontracting, etc. The article shows the advantages and disadvantages of outsourcing, general and special from other related concepts. The stages of decision making on the implementation of the outsourcing model were also described, various approaches to the development and implementation of an outsourcing strategy were studied and considered. A comparative characteristic of these approaches is carried out; features, advantages and disadvantages are revealed. The process of research of outsourcing economic feasibility has been studied. The article highlights the methods of assessing the effectiveness of outsourcing: the use of reference models, the method of calculating costs by processes, the concept of the value chain of M. Porter, the individual indicators of the effectiveness of outsourcing (the economic feasibility of outsourcing, indicators of serviceability, quality of customer service, an indicator of social and business activity) are considered.

outsourcing, outsourcing business model, insourcing, outsourcing matrix, outsourcing advantages, outsourcing disadvantages, outsourcing stages, outsourcing efficiency, outsourcing features, outsourcing mechanism.

Meshcheryakova S. A., Davletshina L. M. Essence and mechanism of the outsourcing business model. Business. Education. Law, 2020, no. 2, pp. 175–179. DOI: 10.25683/VOLBI.2020.51.258.