Oleg E. BorisovPublished in:
Russian Journal of Entrepreneurship
– Volume 17, Number 16 (August 2016)

JEL classification: L21, M51, M54, O34

Keywords: competition, delegation of processes, intellectual capital, outsourcing


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Abstract:

The article deals with the main definitions of outsourcing, demonstrates stages of its incipience and development. The author has identified the key researchers, as well as personalities and corporations having the dramatic impact on the popularization of outsourcing methods and models. The main practical business models that have become successful through outsourcing at different stages of its development have been discussed. Using the example of certain business processes it has been shown how the transformation of labor differentiation principle caused an increase of the amount of services in the process of end-product creation. The author has studied the examples of competition between the industrial production leaders in the USA in XX; these examples demonstrate the impossibility to withstand harsh pressure of the competitors with self-reliance only. Based on the discussed practical examples it has been shown that outsourcing becomes the key instrument to increase efficiency and competitiveness for modern business.

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