IMPACT OF OUTSOURCING ON BUSINESS EFFICIENCY: ANALYSIS OF BENEFITS AND RISKS

Abstract

The article examines the essence of outsourcing as a strategic approach to enterprise management and studies its origin and role in modern management. The main aspects of outsourcing are analyzed, including the use of external resources and services, as well as its features and forms of classification. The article provides an understanding of how outsourcing can be used to optimize business operations and achieve greater efficiency in business management. The practice of international and transnational outsourcing, where countries with developed economies delegate part of their tasks to less developed countries, is studied. The article also considers the advantages and disadvantages of outsourcing for customer enterprises and recommendations for choosing outsourcing firms. Considered important aspects of cooperation of companies with external service providers, or outsourcing. The importance of experience and reporting of the outsourcing partner, as well as the need for transparency in relations, are highlighted. Various aspects that make outsourcing attractive to companies are highlighted. This article examines the disadvantages and risks of outsourcing in a business environment. The authors carefully analyze aspects such as loss of control, dependence on external factors, data privacy and security, communication problems, loss of local jobs, lack of quality control, project completion risks and commensurate interests. The article emphasizes the importance of careful planning and thoughtful selection of an outsourcing partner before making a decision to use outsourcing in business. Various areas of outsourcing use in the business environment have been studied. Industries where outsourcing is widely used are analyzed, including information technology, accounting and finance, customer service, human resource management, marketing/advertising, manufacturing, and logistics. The article highlights the variety of opportunities for outsourcing and points out the importance of choosing the right outsourcing partner, especially in the context of software development. The field of information technology (IT) has been identified as one of the most popular areas for outsourcing. The authors analyze various aspects of IT outsourcing, including software development, testing, infrastructure maintenance, cybersecurity, data processing, data analysis, and technical support. The article provides data on the best IT outsourcing countries and focuses on Ukraine as one of the attractive options for outsourcing. Statistics on the number of IT specialists and the average salary of software developers in Ukraine are given, emphasizing the economic benefits of outsourcing in this country. This article considers Ukraine as an attractive country for outsourcing in the field of information technology (IT).