Outsourcing parts of work that do not constitute the core business of an enterprise is treated today in most companies as the most normal and economically justified thing. It is no coincidence that outsourcing is perceived as a path to cost reduction. Make or Buy – this is the dilemma faced today by managers planning the future of their enterprise. Often, the success of the company on the market or the end of its independent existence, due to a bloated organizational structure multiplying profit-consuming costs, depends on this decision. Separating logistics functions from the company’s structure can take place through so-called spin-off (separating parts of functions and processes from one’s own structures into separate enterprises) or outsourcing (commissioning parts of functions and processes to external specialized operators).
Depending on the area covered by the subcontracting, we distinguish the following types of outsourcing:
• technological (selected processes)
• administrative (selected functions)
• logistics.
Due to the method of separating functions, we distinguish between capital outsourcing (separating a part of the business activity from the parent company’s structure along with a team of employees and creating a subsidiary capital company on this basis) and contract outsourcing (separating a part of the business activity from the parent company’s structure and transferring it to an independent business entity for execution based on a contract).
• administrative (selected functions)
• logistics.
Due to the method of separating functions, we distinguish between capital outsourcing (separating a part of the business activity from the parent company’s structure along with a team of employees and creating a subsidiary capital company on this basis) and contract outsourcing (separating a part of the business activity from the parent company’s structure and transferring it to an independent business entity for execution based on a contract).
Increasingly, the concept of co-sourcing also appears in the context of outsourcing. It is defined ambiguously:
as a partnership in the relationship between the provider and the recipient of outsourcing services and as a description of a situation in which an enterprise,
while entrusting the execution of a function to an external company, simultaneously delegates its own employees to it.
The article comes from the magazine “Logistyka” 5/2006.