CHALLENGES OF OUTSOURCING AS A FORM OF LABOR ORGANIZATION AND PROVISION OF PROFESSIONAL SERVICES

Abstract

The purpose of the article is a study of the current challenges of outsourcing as a form of organizing cooperation in the provision of professional services and determining their impact on the effectiveness of companies. The study is aimed at identifying the problems of companies when making decisions about engaging outsourcing services in their activities. In modern conditions of transformation of the global labor market, development of digital technologies and increased global competition, companies are increasingly turning to outsourcing as an effective tool for organizing activities. Despite the obvious, at first glance, advantages, the spread of outsourcing relationships is accompanied by a number of challenges related to both economic efficiency and social aspects of labor organization. In particular, the issue of ensuring a balance between the economic feasibility of transferring functions to external performers and maintaining the appropriate level of service quality and control over the fulfillment of contractual obligations remains problematic. In addition, in conditions of dynamic technological changes and the growing role of remote work, new challenges arise in terms of risk management and protection of commercial information. Scientific methods used in article include systematic literature reviews, content analysis, explanation and generalization. The study found that a company that decides to outsource faces certain challenges. In particular, one of the problems of outsourcing is the possibility of losing control over the processes performed by an external contractor. The loss of such control can lead to a decrease in the quality of products or services, which negatively affects the company's reputation. At the same time, there is a risk of losing data confidentiality and information security. Also, outsourcing can cause problems in communication and coordination between the company and the contractor, which can lead to a delay in obtaining management information for prompt decision-making. In addition, outsourcing leads to a reduction in jobs within the company, because, along with the reduction in personnel costs, there is a loss of institutional experience in implementing the function that is outsourced. The study is aimed at identifying problems companies face when making decisions about outsourcing their activities, which will ultimately help in finding ways to solve them.