THE ASSESSMENT OF THE EFFICIENCY OF MANAGEMENT FUNCTIONS OUTSOURCING

Abstract

The view of the outsourcing process differs significantly includes not only the classical view of outsourcing as the transfer of traditional non-key functions of the organization to external contractors, but also long-term transfer of management functions and, if necessary, available resources to external contractors. A successful model of effective business, that allows to gain competitive advantage, may include outsourcing management functions. According to some economists, the motives for outsourcing certain functions are the cost and quality of the product, and the possible loss of control over the business is not a first-rate factor. Systemic cost optimization addresses the problem of costs that can be avoided. It should be noted that the indicator on which the consumer of outsourcing services should focus is the economic effect. The process of transferring accounting functions to another company is not suitable for the classical definition of outsourcing. In practice, the most common types of outsourcing of management functions are accounting and tax accounting, legal support, maintenance of information systems. There are different ways to can quantify the efficiency of accounting outsourcing, including a cost approach. The most important advantage of accounting outsourcing in the strategic aspect is the ability to share risk. Financial or tax reporting outsourcing is primarily a matter of risk allocation, so the assessment of the efficiency of this type of outsourcing should be developed from this standpoint. A successful model of effective business can use outsorcing. It is important that especially during the busines development in the market, the company can not perform well on certain production processes and some management functions or sometimes lacks the means to ensure this process or function. When transferring non-key functions to external organizations, it is difficult to identify key processes that are strategically important for the company. Separating the accounting process into components and outsourcing only individual processes reduces the level of risk.