Innovative Approach to Starting of Outsourcing Company

Vladimir Aleksandrovich Kunin and Nelly Lugert
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Vladimir Aleksandrovich Kunin: St. Petersburg University of Management Technologies and Economics
Nelly Lugert: St. Petersburg University of Management Technologies and Economics

A chapter in Challenges and Solutions in the Digital Economy and Finance, 2022, pp 37-45 from Springer

Abstract: Abstract Decentralization of management by contracting fractal business processes to outsourcing companies is an important factor in increasing competitiveness and sustainability of a company amidst economic instability and serves as a typical feature of the current stage of innovative economy. The reason behind incorporation of outsourcing companies in charge of fractal business process is a motivational expansion of business, which contributes to innovative corporate development and increases innovative potential, strategic positioning and operational efficiency. This paper describes how to initiate outsourcing by delegating a fractal business process to a spin-off company and by preliminary testing of the business process on a digital twin created for this purpose. The authors also propose to optimize business relations of a parent company with a fractal business process and an outsourcing company using the above-mentioned digital twin. The article shows financial recourses for small businesses to create a digital twin and proves economic efficiency of its use when spinning off subsidiary outsourcing companies. The paper formalizes a condition for financial efficiency from transformation of a fractal process into an outsourcing company. An innovative approach to spinning-off an outsourcing company based on creation and use of a digital twin improves quality control of services/products and ensures financial sustainability of a business in a highly volatile market and increased external risks. Business gets more sustainable because unforeseen costs are decreased thanks to the measures mastered on the digital twin in order to reduce negative impact of risks and accumulate work experience in economically instable environment.

Keywords: Innovative development; Innovative economy; Risk; Costs; Digital twin; Business process outsourcing; Competitiveness of businesses; Fractal business process; Corporate decentralization (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-031-14410-3_5

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DOI: 10.1007/978-3-031-14410-3_5

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