Conditions for the functioning of outsourcing in enterprises

Agata Marcysiak ()
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Agata Marcysiak: Siedlce University of Natural Sciences and Humanities, Poland

Entrepreneurship and Sustainability Issues, 2020, vol. 8, issue 1, 539-554

Abstract: The objective of the study is to present the underlying conditions of the functioning of outsourcing at various levels of company operations. In addition, it shows a detailed analysis of the purposes of outsourcing, the scope of outsourced services and outsourcing selection criteria. What is more, it includes an assessment of the level of company satisfaction with outsourcing performance and the risks involved. The research materials comprise data regard-ing 140 manufacturers and service providers located in Eastern Poland which have outsourced some of their activities. The survey performed allowed the researchers to evaluate the scope of use of outsourcing services in company operations. The descriptive, comparative and graphic methods were all applied to analyse the re-sults of the study. The statistical analysis and the calculation of the correlation coefficient were employed to assess the level of dependence of company size on the scope of use of out-sourcing services. The conducted analyses show that the main objective of outsourcing use appears to be the focus on core competencies and the reduction of operating costs (75.7% and 60.7%, respectively). The most frequently indicated areas outsourced by the companies are the organization of supply, distribution, transport services and renovation-repair services. More than a half of the analysed enterprises pointed at the above listed areas. The factors of major importance when selecting outsourcing services providers are experience, market recognition, price, quality, and the application of the principles of sustainable development. The last element was crucial, above all, in the case of companies employing over 250 people. This is because in their case cooperation with companies holding relevant certificates and permits in the field of sustainable development translates directly into the development of a good company image and an increase in company value.

Keywords: outsourcing; sustainable development; core competencies; company management (search for similar items in EconPapers)
JEL-codes: L22 L26 O32 Q55 Q56 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:ssi:jouesi:v:8:y:2020:i:1:p:539-554

DOI: 10.9770/jesi.2020.8.1(38)

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