For successful business development in the context of globalization becomes management. Kazakh companies need to find their place in the new stage of competition development. One of the methods of solving the problems of its development is to attract external performers and transfer them non-core works for themselves. Therefore, there are new management technologies to improve the efficiency of their enterprises. One of such management models is outsourcing [1].
Outsourcing can improve the efficiency of certain functions in the field of information technology, supply and supply, maintenance, Finance, staffing and production.
Despite the massive use of outsourcing in the West, Kazakh companies use it quite limited, the reason for this is a number of factors, such as:
1) a small degree of trust in companies in relation to outsourcers, which may be caused, including previous negative experience of outsourcing;
2) poorly developed culture of the contractual relationship [2];
3) the problem of keeping trade secrets;
4) lack of legislative framework;
5) high cost of outsourcing services in comparison with the performance of work on their own;
6) lack of objective information about potential outsourcers and professional staff [3].
One of the main reasons preventing outsourcing is the associated risk. In parallel with the management’s understanding of the advantages of outsourcing, the question arises as to what functions should remain within the organization, as their loss will lead to the loss of competitive advantages, erosion of individuality and destruction of the company’s image. Thanks to outsourcing, professionals have the opportunity to concentrate on their main job, thereby increasing their productivity [4].
After analyzing the theoretical works on outsourcing, considering the features of practical outsourcing in Kazakhstan and abroad, it is safe to say that this method of organization of the company has both advantages and disadvantages (table 1).
Table 1 — Comparative analysis of the opportunities and risks of the transition of the organization to outsourcing
Opportunities |
Risks |
Focus on core activities |
Violation of privacy and security principles |
Improving the quality of service |
Poor quality service |
Savings on staff and training |
Non-compliance with the provisions of the Treaty |
Reducing the price of purchased services through the use of competitive bidding mechanism |
Lack of necessary competition in the service market |
Opportunity to benefit from the best experience |
Insufficient qualification of the service provider |
Freeing up internal resources for other processes |
Poor management by the service provider |
Risk diversification |
Unclear definition of goals and objectives |
Involvement of specialized companies in cooperation |
Unsuccessful choice of supplier of products, works (services) |
Guarantee of professional responsibility |
The risk that the value of the services if you change the state of the market or extent of purchased services |
No need for staff expansion |
Inability to promptly change the requirements for the purchased service (in case of unforeseen circumstances) after the conclusion of the contract |
Reducing the cost of maintaining excess service infrastructure |
Risk of change of ownership in the executing company, merger with another company or bankruptcy |
The cost structure is transformed from variable to fixed, which facilitates the process of planning and control |
Gradual uncontrolled increase in prices for services provided |
Source: compiled by the authors based on the study of domestic and foreign experience of outsourcing.
One of the main purposes with which the organization was created, is performance of those types of activity which one of the large enterprises of Taldykorgan planned to give for outsourcing [5].
For these purposes, and the company was established outsourcer. For several years the created firm rendered services of production and economic outsourcing, and also services of out staffing only to this enterprise.
But the dynamics of financial indicators shows that in connection with the optimization of business processes in the company of the customer, the income of the outsourcer is reduced every year, increasing the number of employees leaving due to dissatisfaction with wages and working conditions [6].
Dependence on a single customer firm has a negative impact on the development of the outsourcer firm. There was a need to expand your business by providing cleaning services to other third parties.
To solve this problem, the analysis of competitors and the regional market of cleaning services was carried out [7].
The main competitors in the field of industrial and economic outsourcing are 6 main firms in Taldykorgan, which provide cleaning services: LLP «Clean business», LLP «Prof — cleaning», LLP «Klinfix», LLP «Chistyulya», LLP «snow White», LLP «Mirum» [8].
On the basis of information (price lists, customers, customer reviews) on the official websites of these companies will analyze the main competitors (Table.2).
Table 2 — Competitor analysis.
Organizations |
Evaluation criterion |
The availability of the site and other information |
|||
A variety of services, num. |
Prices for 1 sq. m./tenge. |
Time constraints |
Quality/ complaints |
||
LLP «Clean business» |
up to 15 |
from 10 |
delays |
No |
yes |
LLP «Prof — cleaning» |
up to 20 |
from 12. |
in time |
yes |
yes |
LLP «Klinfix» |
up to 15 |
from 10. |
in time |
No |
yes |
LLP «Chistyulya» |
up to 15 |
from 11 |
delays |
yes |
yes |
LLP «Snow White» |
up to 20 |
from 10 |
in time |
yes |
yes |
LLP «Mirum» |
up to 20 |
from 10 |
delays |
yes |
yes |
Source: compiled by the authors on the basis of the studied material.
The results of the analysis of the internal environment of the enterprise and the market of production and economic outsourcing in Taldykorgan use for SWOT analysis [9].
Table 3 — SWOT analysis of the outsourcing business model.
Strengths of the company |
Weaknesses of the enterprise |
· Stable financial position; · High level of compliance with contractual obligations; · Reliability and performance; · Adequate wages. |
· Low awareness of potential consumers of cleaning services; · Lack of information work. |
Opportunities |
Threats |
· Annual growth of the production and economic outsourcing market is about 30%; · The presence of potential consumers of cleaning services should contribute to the implementation of the business plan to improve the company’s activities. |
· Increased competition in the market of industrial and economic outsourcing; · Frequently changing legislation. |
Source: compiled by the authors on the basis of the studied material.
Comparing the opportunities and threats of the external environment with the strengths and weaknesses of the organization, we can draw the following conclusions:
— a stable financial position and reliability should be used to strengthen its market position;
— development of marketing activities will improve information and increase the number of consumers [10];
— formation of the image of the organization as a reliable partner should improve the competitive position of the company in the market of cleaning services.
Suggestions for improving the activities of the outsourcing organization
To implement the plan of measures to improve the company’s activities, it is necessary to perform the following actions: strict compliance with the concluded contracts for the provision of services [11]. It is particularly important to interest the company in the implementation of the necessary services for the market; development of an effective policy in the field of personnel training, which will allow the company to gain a competitive advantage in the field of personnel differentiation; identification of the most profitable assortment positions among the existing ones and search for new opportunities for; carrying out marketing activities to promote the company’s services in the market of cleaning services; revision of the system of motivation of personnel with an emphasis on the quality of performance of their duties by introducing a system of remuneration for the results of activities that will lead to increased productivity [12].
The analysis showed that the annual growth of production and economic outsourcing is about 30%, and the volume of the market of Kazakhstan cleaning services is estimated at more than $ 300 million. Therefore, the company needs to expand its presence in the market of cleaning services. Taldykorgan market of cleaning services currently tends to expand, which makes it attractive to enter it with new types of services. To implement this plan, it is necessary to carry out a number of activities:
- In order to provide high quality services and be a competitive enterprise, it is necessary to purchase new professional equipment and high-quality materials (detergents, household chemicals) [13].
* To carry out a number of marketing activities to attract potential customers, such as: advertising in the media (newspaper, radio), updating the company’s website to the information contained therein positioned the company as a company that provides quality and expensive cleaning services. Since the company’s staff includes telegram carriers, whose duties include daily delivery of telegrams to the addressees, it is necessary to develop a design of advertising leaflets with information about the company, which will be delivered to different addresses by the deliverers, which should also attract the attention of potential customers of the company [14].
Expand the range of services offered, including services that will position the company as a company that provides unique services. Currently, in Taldykorgan there is an increase in the construction of large shopping centers in this regard, there is a great need for production and economic outsourcing (cleaning services) at the same time, with the growth of welfare of the population there is a demand for services to provide cleaning services to individuals [15].
Sources used
- Anikina, B. A. (2003). Outsourcing: creation of highly effective and competitive organizations: Studies. textbook / ed.– M.: INFRA-M, 241 p.
- Cousin, B. (2001). Methods and models of company management / SPb.: Peter.
- Duncan, Jack W. (1996). Fundamental ideas in management. Lessons of founders of management and management practice. Tr. with English. — M.: Case, 215 p.
- Ford, G. (1989). My life, my achievements / G. Ford. M. Finance and statistics.
- Kendrick, C. (2007). Top R&D Destinations // The Outsourcing Weblog. Outsourcing News. March. (http://www.outsourcing-weblog.com)
- Lacit, M.C. (1993). Information Systens Outsourcing / M.C. Lacit, R. Hirscheim. -New York, 1993.
- Monczka R.M. Purchasing (2010): Building the Infrastructure. NAPM Annual International
- Morgan, R. (2017). Effective outsourcing. Understanding, planning and using successful outsourcing relationships / R. Morgan. — M: Balance Business Books. 288 p.
- Scott, M. K. (2004). Professional services firm. Guide for managers to maximize profits and value: lane.from the English. / M. C. Scott. -M.: Olimp-Business.
- Storozhuk V. A. (2016). Outsourcing as a tool to improve the efficiency of the enterprise / / Young scientist. No. 5. P. 417 to 419. URL https://moluch.ru/archive/109/26505/.
- Tax code of the Republic of Kazakhstan dated January 1, 2018.
- The civil code of Kazakhstan (with changes and additions as 21.07.2018 y.)
- World Trading Organization. Annual Report. (1998). Geneva: World Trading Organization (WTO), 2008. Р. 241.
- State program of industrial and innovative development of Kazakhstan for 2015-2019. http://stat.gov.kz
- State program of infrastructure development Nurly Zhol for 2015-2019. http://stat.gov.kz