Economic Efficiency of Outsourcing Business Models: A Comparative Assessment

Flora Kulembayeva (), Aruzhan Seitkaziyeva and Rakymzhan Yelshibayev
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Flora Kulembayeva: Narxoz University
Aruzhan Seitkaziyeva: Narxoz University
Rakymzhan Yelshibayev: Narxoz University

Global Journal of Flexible Systems Management, 2022, vol. 23, issue 1, No 4, 75-88

Abstract: Abstract This study aims to form a methodological approach to assess outsourcing business models and identify the most acceptable one for a modern enterprise. The research methodology is based on the author's approach, which includes cognitive map analysis and a simplicial complex. The study was tested on two Information Technology companies in Russia. Based on the determination of the profit elasticity on the manageable vertices of outsourcing business models, the most attractive in terms of efficiency criterion in the form of profit is the outsourcing business model of developing in-house non-IT services. The analysis of structural connectivity made it possible to rank the factors by the level of importance for the preservation of the business model. Modeling the effectiveness of implementing the formed outsourcing business models provided an opportunity to increase profits for the investigated IT companies by increasing the number of single-type projects. The conducted modeling of changes in relations with customers in the studied IT enterprises shows the inexpediency of changing customer relations in BM3. It is proved that certain factors can be replaced without losing the integrity of the business model. The scientific contribution of this study is the proposed methodological approach for assessing the effectiveness of an outsourcing business model. Based on the application of this methodology, the strategic objectives are linked to the business model in the process of achieving them (the achievement of strategic objectives under the influence of the selected outsourcing business model is shown).

Keywords: Business model; Cognitive map; Efficiency; Outsourcing; Profit; Project budget; Simplex; M10; M12; M15; M50; M55 (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/s40171-021-00290-w

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