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OUTSOURCING AS A STRATEGY FOR THE SUCCESS OF THE
SERVICES INDUSTRY
Shaynazarov Alisher Xusanovich
Denov Institute of Entrepreneurship and Pedagogy
Chief specialist of the education credit system management sector
E-mail: shaynazarovalisher@gmail.com
https://doi.org/10.5281/zenodo.15340820
Annotation:
This article reflects the author's view of outsourcing services
as a new and modern service, its unique characteristics and success strategies.
In addition, suggestions and recommendations for improving outsourcing
services are developed.
Keywords:
service, outsourcing, strategy, outsourcing services.
Introduction.
In Uzbekistan, legal frameworks are being created for
outsourcing activities to the public sector. Based on the fact that the main task is
to improve the activities of all parts of the education and upbringing system in
accordance with modern requirements, the advantages of using outsourcing in
the public sector will be discussed using the example of this and other areas.
Autsorsingning davlat sektorida qo‘llashda ijtimoiy xizmat darajasining
keskin pasayishiga yo‘l qo‘ymaslik choralari ko‘riladi, inson uchun o‘ta muhim,
yuqori kaloriyali oziq-ovqat iste’moli tarkibi takomillashtiriladi, inson
genofondini saqlash uchun homilador ayollar va bolalarning ovqatlanish ratsioni
bo‘yicha amaldagi me’yorlarni xalqaro standartlar asosida qayta ko‘rib
chiqilishiga olib keladi.
If a few years ago the mechanism of "outsourcing" was used only in the
private sector, today "outsourcing" is also being used effectively in the provision
of social services in budgetary organizations.
Outsourcing is the transfer of one or another function of an organization to
external performers specializing in carrying out this activity. In other words,
outsourcing is understood as the total volume of purchases of goods, works and
services by the public sector from the non-governmental sector.
Outsourcing of catering in public institutions is organized on the basis of a
competition held by a Selection Commission, the composition of which is
approved in accordance with the Law of the Republic of Uzbekistan "On Public
Procurement".
The application of modern mechanisms and methods that have been
successfully implemented in the private sector in Uzbekistan in social sectors
where budget services are provided, the importance of cost savings and
improvement of service quality in the introduction of outsourcing in the public
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sector, the improvement of the organization of healthy, rational and safe
nutrition in public sector institutions, the use of modern methods such as
catering (high-level public catering), their combinations, the existence of legal
bases for the conclusion of outsourcing agreements between the outsourcer and
public institutions, and the effectiveness of costs based on outsourcing in the
social sector are considered to be the advantages of using outsourcing.
Outsourcing agreements with representatives of the private sector are
regulated by the civil legislation of the Republic of Uzbekistan and a number of
laws and by-laws regulating the activities of business entities. In this regard,
outsourcing agreements are concluded freely and no formal requirements are
established.
Analysis and results.
Global competition, the emergence of new players in
the world market, requires the use of new technologies to participate in the
market. In the modern world, business leaders are increasingly using
outsourcing of services in practice, defining it as a new management strategy.
The task is to do what they can do best and, if possible, get what is most
profitable for the company. As a result, market participants follow the path of
specialization in specific functions and tasks. In other words, dividing a business
project into separate components, transferring certain types of work to highly
specialized companies under the outsourcing scheme is a strategic direction of
effective commerce.
The outsourcing service sector is an integral set of firms and companies
participating in the market for mutually beneficial cooperation by transferring
corporate functions to third-party organizations - outsourcers, taking into
account the factors, trends and patterns of the business environment.
In terms of market share in the consumption of outsourcing services in the
global market, the leaders are the USA - 36%, Western Europe - 29% and Japan -
13%. The share of US companies that outsourced any function or business
process was 86% in 2020, compared to 52% in 2019. Sales in the US outsourcing
market increased more than 3 times in 2020.
The trend of expanding the European market for outsourcing services is
gaining momentum. According to analysts, in the last quarter of 2021, more
outsourcing contracts were awarded in Europe than at any time since 2020.
Leading consultants say that the need to reduce costs is forcing European
companies to overcome their reluctance to transfer part of their business to
subcontractors. In recent years, India, the Philippines, Mexico, China and Eastern
European countries have joined the ranks of suppliers of the outsourcing market
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as representatives of the “new economy” experiencing significant growth in the
production and use of information technologies.
In conditions where the struggle for the client is forced to improve the
quality of their goods and services, local companies should focus on issues of
efficiency, economic efficiency and reduction of business risks. Refusal of direct
operational management of individual business tasks, while maintaining control
over their implementation, allows the company to significantly advance towards
the "erosion" of additional costs, tax and social costs as a result of "handing
over" them to third parties.
In a general sense, outsourcing of commercial services is the transfer of
certain types of services to an external outsourcing company. Outsourcing
allows companies to focus on their core business and transfer the burden of
auxiliary functions to companies that can successfully perform them. The
presence of a long-term outsourcing strategy in a company, according to leading
analytical agencies, is a prerequisite for the successful development of
commerce and its adaptation to rapidly changing market conditions. As a result
of such a strategy, the company's internal corporate processes and external
relations with other subjects of economic relations are restructured. In turn, this
allows for a more rational distribution of the company's fixed assets, the release
of its internal resources, the increase in the efficiency of performing key
functions, and a significant reduction and control of production costs.
According to international analysts, in the conditions of openness and
globalization of the national economy, the world's leading companies are full
consumers of offshore outsourcing. Offshore outsourcing is outsourcing with the
participation of outsourcing companies outside the client's country (for
example, offshore IT outsourcing). A natural question arises: whether to
perform work in your own country or to outsource its performance to offshore
companies?
If a decision is made to change the management process, the task of more
accurately and carefully managing all its components comes to the fore than
ever before. In most cases, the process will have to be synchronized more tightly
with partners, suppliers and customers abroad. Local top managers of large
businesses in our country say that it is important to solve such problems of
offshore outsourcing: fast Internet access; free access by customers to the
company's website at any time convenient for them, as well as receiving daily
backups of data; failures in the database management system (DBMS), corporate
e-mail, the presence of an efficiently functioning data network, a telephone
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network, timely "reflection" of viruses and hacker attacks, etc.
Taking into account the specific characteristics of our country, we note that
among the services most often outsourced to national outsourcing, recruitment
is in first place, catering is in second place, information technology is in third
place, payroll and accounting are in fourth place; the fifth is the performance of
certain types of construction work.
The definition of outsourcing reflects the diversity of its interpretation from
the following points of view:
a) way of thinking;
b) management principles;
c) economic activity sectors;
d) the synergistic effect of flexible use of outsourcing philosophy.
The term “outsourcing” comes from the English words “outside resource
using”. In other words, it is a purposeful division of individual business
processes and their transfer to a third-party organization for execution. In
practice, there is a methodology opposite to outsourcing, which is the so-called
insourcing, that is, the introduction into the corporation of functions previously
performed by other market entities.
Many experts believe that outsourcing spread in connection with the
development of information systems and technologies and attribute the
beginning of the “outsourcing era” to the 1960s. The mid-20th century, namely
1962, is considered the date of the foundation of the world-famous Electronic
Data Corporation (EDS), and this company is considered the beginning of
outsourcing. In the countries of the Organization for Economic Cooperation and
Development, public sector outsourcing, calculated based on this methodology,
amounted to 10.0 percent of GDP in the years in which the analysis was
conducted.Iqtisodiy hamkorlik va taraqqiyot tashkiloti davlat sektoridagi
autsorsingning ulushini doimiy ravishda tahlil qiladi va baholaydi.
The functions of state bodies that are outsourced in foreign countries are
divided into three groups.
The first group includes support functions, such as catering, cleaning of
buildings, waste disposal, security services. These functions can be easily
outsourced, since they are not considered the main tasks of the budget
organization and management bodies, their use is relatively simple,
standardized, and does not impose high demands on performers and does not
require a high level of knowledge.
The second group of functions includes supporting functions that require
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sufficiently high professional qualifications from performers. This group of
functions includes finance and accounting, personnel management, legal
services, document management, and the use of information technologies.
Conclusions and suggestions
. In recent years, outsourcing in the public
sector in foreign countries has been primarily associated with the
implementation of the functions of this group, with the use of information
technologies being the most widely used outsourcing function.
The third group of functions to be outsourced includes the main functions
that are directly performed by state authorities themselves; this type of
outsourcing is very rare in foreign countries.
Thus, the need to optimize budget expenditures at the national and local
levels is to increase the efficiency of budget expenditures through the use of
outsourcing.
In general, when applying outsourcing to the services of state institutions, it
is advisable to use outsourcing in order to increase the competitiveness of
budgetary organizations, commercial and non-profit organizations that provide
budgetary services, and the effectiveness of budget expenditures.
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