Outsourcing of Functions as a Tool of Increasing Companys Competitiveness

Outsourcing is an effective tool of increasing the competitiveness of a company allowing its management to concentrate the resources on the key functions. The necessity of strengthening the service component of production makes the companies combine the requirements of the production efficiency, taking into account the preferences of customers. The necessity of improving the quality of service leads to the emergence of secondary functions in the enterprise, the companys activities become more diverse, and the management of the company becomes more complicated. This requires new resources and a broad qualification of personnel, which increases the expenses and potentially reduces the competitiveness. Outsourcing allows to focus the resources on the selected processes. The functions that are not related to the basic activities and are associated with the non-core assets are transferred to the specialized organizations. The article highlights the main reasons of using the outsourcing for companies, which makes it necessary to reduce the expenses and improve the quality of service. It reveals the secondary advantages of the outsourcing and presents the functions that are primarily transferred to the specialized institutions. The main risks of the outsourcing of functions are identified and the ways of their decrease are presented.