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Outsourcing as a tool for corporate restructuring

Outsourcing is defined as the long-term commissioning of support department functions to an external service provider, serving to increase the value that a company presents to its shareholders. It is a long-term contract that entrusts an external provider with the responsibility for the management and development of all or part of transaction processing, or the handling of business processes and infrastructure. Why is it worth taking a closer look at this issue? First and foremost, outsourcing is an increasingly used management method. It is also being introduced in Polish enterprises, although the scale of this phenomenon is incomparable to that found in countries with highly developed market economies. Perhaps this relatively inexpensive and time-saving method will gain greater recognition among Polish managers, which will lead to an improvement in the competitive position of domestic companies in global markets.
Undoubtedly, one of the most important problems of organizational restructuring of an enterprise is determining the ideal scope of functions performed by the company. The starting point for this problem is the assertion that the economic activity of an enterprise requires the implementation of a set of repetitive actions. The concept of using subcontractors is nothing new; however, the innovation of this approach lies in the fact that the organization, as a result of conducted analyses, outsources those activities that it had previously performed in-house. Those areas that a partner can perform better, cheaper, and faster should be outsourced.
The article comes from the magazine “e-Fakty” 3/2005.

2005-3s29.pdf