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The Practical Aspects of Outsourcing at the Enterprises of Agricultural Business
Dziuba M. O.

Dziuba, Mykola O. (2020) “The Practical Aspects of Outsourcing at the Enterprises of Agricultural Business.” Business Inform 8:140–145.
https://doi.org/10.32983/2222-4459-2020-8-140-145

Section: Agricultural Economics and Agribusiness

Article is written in Ukrainian
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UDC 631.1:334:338.4:658.5

Abstract:
The article is aimed at researching both the world and the domestic experience of the use of outsourcing in the national economy in general and at the enterprises of agricultural business in particular. The development of outsourcing relations in the world, the role of outsourcing in the development of the world economy is considered. Outsourcing relations in the agriculture of the Netherlands, UK, Poland and Japan are analyzed. Special emphasis is placed on the analysis of advantages and risks of outsourcing, selection of outsourcers to perform certain functions of the enterprise. It is believed that companies that use only internal capabilities instead of external (outsourcing) are less oriented towards innovation and cannot take advantage of opportunities to develop new value-added products. The narrowly specialized outsourcers can contribute much more to creating added value with lower costs than any integrated enterprise. On the basis of the carried out researches, it is concluded that the expected benefits of outsourcing can include such as: cost savings; reduction of investment costs; supply of fresh capital; transfer of the permanent cost to the variable cost; improved quality level of products and services; improving the adaptability of the enterprise; access to modern technologies; focus on the company’s key activities and solving problems related to existing functions. Numerous studies carried out abroad show that outsourcing brings a technological effect that can become an important means of economic growth in the country. In particular, China’s example proves that there is a strong positive correlation between the level of development of outsourcing and production output volumes, trade volumes, employment of the population and the level of innovation. The reasons for low level of implementation and development of outsourcing at domestic vertically integrated enterprises of agrarian business are identified.

Keywords: outsourcing, outsourcer, agribusiness, business process, transaction costs, efficiency.

Bibl.: 10.

Dziuba Mykola O. – Candidate of Sciences (Economics), Associate Professor, Department of Accounting and Auditing, Donbass State Pedagogical University (19 H. Batiuka Str., Sloviansk, Donetsk region, 84116, Ukraine)
Email: [email protected]

List of references in article

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