The Mechanism of Efficiency Assessment of Outsourcing

Yuri Mikhailovich Tsygalov (), Alexey Vladimirovich Dorozhkin (), Ekaterina Evgenyevna Dorozhkina () and Ildar Ravilyevich Zhabbarov ()

Administrative Consulting, issue 8

Abstract: Widespread use of outsourcing in Russian companies is hindered not deep enough knowledge of the risks of outsourcing, the low level of trust of business partners in domestic companies, the difficulty of achieving positive results for all participants, as well as the complexity of the definition of the outcomes of the restructuring of the company. Known approaches to the evaluation of the results of outsourcing are based on the definition of benefits, mainly the parent company, which transmits part of the functions of a third-party contractor. Almost always as the most important result of outsourcing call decrease costs and improve product quality for the parent company. Evaluation of effectiveness will be seriously affected if the outsourcing involves more than two or ganizations, as the consequences can be different, positive or negative, for different participants in the restructuring. The paper proposes an approach that takes into account indicators of «at risk» - @Risk. This criterion allows determining in financial terms any indicator of activity of the company: profit (profit@Risk, return@Risk, earnings@Risk, etc.). The resulting efficiency of outsourcing is determined by the summation index@Risk all parties involved in a restructuring of the company. The proposed approach allows to take into account the loss on any part of the business process and any member of the outsourcing.

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Persistent link: https://EconPapers.repec.org/RePEc:acf:journl:y::id:634

DOI: 10.22394/1726-1139-2017-8-36-42

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