Assessing the Expediency of Using Outsourcing in Various Economic Sectors: A Review of the Existing Approaches

Abstract

Many companies use outsourcing as one of the highly effective forms of organizing business processes to respond to market changes quickly. It allows companies to reduce costs and focus on the most cost-effective activities. However, how to understand whether it is worth transferring the business process to outsourcing to a third-party organization or still leave it inside the company? This paper will try to answer this question. The main objective of the study is to conduct a comparative analysis of existing approaches to assessing the appropriateness of using outsourcing by a company to form a mechanism for using new forms of outsourcing. In the paper, we will present an overview of the main methods and models for evaluating the feasibility of using outsourcing, based on the scientific works of foreign and domestic scholars. Additionally, we will study approaches aimed at forming a decision on the use of outsourcing, the selection of business processes, and their composition for outsourcing. The goal of the study was achieved by systematizing and analyzing the scientific works of foreign and domestic scholars according to the theoretical and practical orientation on the issue investigated in this work. A review of the literature indicates that each method and model for evaluating the feasibility of using outsourcing takes into account either quantitative or qualitative characteristics, which separately do not provide an objective assessment for deciding on the use of outsourcing. Based on the study, we can conclude that there is no universal approach to determining the feasibility of outsourcing nowadays. The authors proposed an integrated approach to solving this problem.