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Conditions for the functioning of outsourcing in enterprises

Author

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  • Agata Marcysiak

    (Siedlce University of Natural Sciences and Humanities, Poland)

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.

Suggested Citation

  • Agata Marcysiak, 2020. "Conditions for the functioning of outsourcing in enterprises," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(1), pages 539-554, September.
  • Handle: RePEc:ssi:jouesi:v:8:y:2020:i:1:p:539-554
    DOI: 10.9770/jesi.2020.8.1(38)
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    References listed on IDEAS

    as
    1. Kabiraj, Tarun & Sinha, Uday Bhanu, 2016. "Strategic outsourcing with technology transfer under price competition," International Review of Economics & Finance, Elsevier, vol. 44(C), pages 281-290.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    outsourcing; sustainable development; core competencies; company management;
    All these keywords.

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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