DEVELOPMENT OF PRACTICAL OUTSOURCING IN WORLD ECONOMY
(65-68)

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Objectives: This paper analyzes the background, motives and evolution of outsourcing processes as a form of differentiation of labor. The paper further discusses the key definitions of outsourcing, stages of its emergence and evolvement. It identifies key researchers, as well as persons and corporations that were of decisive influence on popularization of outsourcing methods and models, considers the main practical business models, which became successful due to outsourcing at various stages of its development. Based on definite business processes it is demonstrated that transformation of the labor differentiation principle resulted in a growing number of services involved in making a finished product. Methodology: The theoretical basis for the research includes the scientific works of foreign and domestic specialists in outsourcing, the theory of social and employment relations, and the theory of competition and entrepreneurship. The paper relies on commonly recognized assertions and findings contained in the works of renowned economists and outsourcing analysts exploring its theoretical and practical aspects. Summary: Competitive practices of US manufacturing leaders in the 20th century discussed in this paper convincingly demonstrate that managing intense pressure of competitors is impossible using in-house resources only. The case studies allow making a conclusion that outsourcing in the present day business is becoming a key tool for improving efficiency and competitive ability.
How to Cite:
Borisov O.E., (2016), DEVELOPMENT OF PRACTICAL OUTSOURCING IN WORLD ECONOMY. Business in Law, 5: 65-68.
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Keywords:
outsourcing, competition, business process, strategy, delegation processes, entrepreneurship.