In the conditions of the competition strengthening in all market industries companies have to cut prime costs of products and services providing high quality along. This is possible only with optimized business processes helping to increase labour productivity. Business outsourcing in this case is strategic expedient need.

World market is moving to the strengthening of companies’ specialization, so, the presence of service organizations substituting functional departments allows to have in-house only staff influencing on strategic firmness and effectiveness of the company.

Possible reasons for outsourcing:

• Company conversion;
• Necessity of increasing company effectiveness and key performance indicators;
• Necessity of increasing products and services quality;
• Lack or absence of in-house functional staff.

Outsourcing revenues:

• Cutting staff costs and control over them;
• Allows to concentrate on the operations which are performed most effectively by in-house staff and those which are strategically reasonable to keep under company’s control;
• Internal resources release for other purposes;
• Guarantees of work quality are provided by the group of experienced specialists;
• Risks segregation;
• Effective changes of number of employed staff.

Economic advantages:

• Increasing of financial indicators of the company effectiveness;
• Decreasing of administrative expanses related with personnel;
• Increasing of innovation capabilities of the company by cooperation with providers possessing wide intellectual potential and innovation experience;
• Provides the flexibility of the company in case of market change: it is easier and cheaper to find new providers with required capabilities and resources rather than change the structure of the company removing facilities and creating new ones;
• Makes faster the process of resources and experience gain.