Managing Outsourcing Risks on the Basis of Development of a Mechanism of Distribution of Expected Losses between the Customer and Outsourcer

Didukh Oksana V. ()
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Didukh Oksana V.: National University "Lviv Polytechnic"

Business Inform, 2013, issue 10, 379_383

Abstract: Despite a big number of literature that studies risks of outsourcing, the problem of their qualitative analysis stays unsolved. That is why, the goal of the article is to identify main specific features of assessment of risks of outsourcing when introducing them into production and economic activity of an enterprise. Using analysis of methods of the probability theory and statistics, the article offers methods of determining and distribution of expected losses from occurrence of external outsourcing risks, which would allow minimisation losses of the customer. In order to assess the impact of outsourcing risks it is also necessary to determine the marginal risk level and its comparison with the expected volume of losses, which depends on the remainder of losses non-compensated by the outsourcer and also on the size of possible losses due to occurrence of internal outsourcing risks. If in the process of practical realisation of the strategy of management of outsourcing risks the customer establishes that the expected volume of losses is higher than the marginal risk level or is equal to it, it is necessary to develop compensation measures or refuse to co-operate with this outsourcer. The prospect of further studies in this direction is identification of methods of selection of an outsourcer on the basis of establishment of dependencies between the quantitative and qualitative characteristics of its activity in order to simplify determination of expected volume of losses.

Keywords: outsourcing; risks of outsourcing; threshold level of losses (search for similar items in EconPapers)
Date: 2013
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