Decision Making in Modern Business Systems by the Principles of Outsourcing

Abstract

Purpose: The purpose of the work is to determine the possibilities and consequences of decision making in modern business systems by the principles of outsource.

Methodology: During studying the perspectives of decision making in modern business systems by the principles of outsource, the method of logical analysis (analysis of causal connections), the method of structural and functional analysis, and the method of formalization are used.

Conclusions: Perspective directions, advantages, and drawbacks of application of outsource for decision making in modern business systems at different stages of this process are determined. Possible variants of decision making in a modern business system by the principles of outsource and their consequences are determined: information and consultation decision support, business system's overcoming a crisis, optimization of certain business processes, and loss of independence of business system and path to its reorganization.

Originality/value: As a result, it is substantiated that outsource is a perspective tool of making of managerial decisions in modern business systems. Various directions of application of this tool are accessible at each stage of the process of making of managerial decisions in a modern business system. The advantages of decision making by the principles of outsource are attraction of additional resources, access to possibilities of automatization, and low expenses, and the drawbacks include the complexity of organization of this process and temporary character of obtained advantages. Too active usage of outsource and transfer of most managerial decisions to it may lead to loss of independence of the business system and increase of the risk of its reorganization. That's why the principles of outsource are recommended for making of certain managerial decisions by business systems in the period of crisis and by newly formed business systems and those that experience deficit of resources.

Citation

Bogoviz, A.V., Berezhnoi, A.V., Mezhov, I.S., Titova, O.V. and Kryukova, O.G. (2019), "Decision Making in Modern Business Systems by the Principles of Outsourcing", Popkova, E.G., Chesnokova, A.V. and Morozova, I.A. (Ed.) Specifics of Decision Making in Modern Business Systems, Emerald Publishing Limited, Leeds, pp. 141-148. https://doi.org/10.1108/978-1-78756-691-020191014