Investment outsourcing projects in metallurgy and methodical approaches to calculate their efficiency

E. P. Karavaev () and S. N. But ()

Russian Journal of Industrial Economics, 2015, issue 1

Abstract: The article deals with changed condition in operational and investment activity of metallurgic enterprises connected with cyclic conjuncture decline in metal products market. Under these conditions we can observe a rising interest to the outsourcing as one of possible methods to elevate the plant operational efficiency. The article summarizes actual aspects of operational outsourcing proposed by various authors. Along with the term “ operational outsourcing†, the definition “investment outsourcing† is proposed and described. In this case the projects are secured thorough productive resources of metallurgic enterprises the customer. The customer presents an independent company which invests its own or borrowed means to implement the project. Potential advantages in investment outsourcing for metallurgical and industrial enterprises are described, the most important aspects specific for principal project implementation stages when using the investment outsourcing are outlined. The mentioned aspects include the right choice of the legal form of outsourcer company, being crucial to force the customer to invest into project implementation. The principal aspects and peculiarities of the contract between the enterprise and outsourcer aimed on the delivery of production resources are presented. The contract includes the formula of formation the price for delivered resources including constant payment not depending on the volume of delivered resources and variable payment depending on volume and quality of resources delivered. The article is accomplished with methodical approaches enabling to define the economic efficiency of different versions in implementation of investment outsourcing projects.

Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:ach:journl:y:2015:id:256

DOI: 10.17073/2072-1633-2015-1-77-81

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