scholarly journals Methodological approach to evaluation of efficiency of it outsourcing

2021 ◽  
Vol 5 (3) ◽  
pp. 18-29
Author(s):  
Petro Pererva ◽  
◽  
Stanislav Nazarenko ◽  

The aim of the article. When deciding on outsourcing, it is necessary to analyze the financial and organizational costs, without releasing from the analysis area the risks that arise when organizing the outsourcing of IT services. The lack of a full analysis in making this decision can instead of benefit cause significant losses. The purpose of the article is to develop methodological approaches to assessing the economic feasibility and effectiveness of the use of information technology outsourcing in the practice of domestic industrial enterprises. Analyses results. The article examines the existing scientific and methodological approaches to assessing the effectiveness of the use of information technology outsourcing in the production and commercial activities of industrial enterprises. Methodical recommendations for evaluating the effectiveness and efficiency of the IT outsourcing mechanism are formulated, which allows to determine the result of its implementation and the direction of its further development. Guidelines for deciding on IT outsourcing are proposed, the use of which is part of the decision-making process on the use of outsourcing in the enterprise and involves consistent implementation of measures to identify the business process for outsourcing to improve the quality and efficiency of delegated processes. A graphical comparative method for analyzing the effectiveness of decisions on the use of outsourcing by third-party companies and the practical implementation of the IT function by the company's own forces has been developed. The methodological approach to assessing the effectiveness of outsourcing management information systems in real business enterprises is sufficiently universal, as it takes into account the conceptual principles of outsourcing on the one hand and allows to adapt the structure of efficiency assessment depending on the complexity and cost of technologies used in business. enterprise, goals and scale of outsourcing. Conclusions and directions for further research. The proposed methodological approach allows to assess the economic efficiency of IT outsourcing to a greater extent in terms of economic justification of the management decision to accept services to IT outsourcers or perform them on their own. Graphoanalytical method for evaluating the effectiveness of outsourcing (Fig. 1) does not allow this. Its algorithm uses aggregated economic indicators (total costs, fixed costs, variable costs), the structure of which is not provided in the mechanism of using this method. Based on this, we consider as a direction of further development and research to develop guidelines for detailing these indicators in order to identify their components, to which the outsourcing company needs to pay special attention. Being based on the consideration of outsourcing as a process, the proposed approach has limitations that allow its application to assess the effectiveness of outsourcing only at a time when outsourcing is not yet implemented in practice. Additional research is needed to address this limitation.

2021 ◽  
Vol 17 (8) ◽  
pp. 1519-1541
Author(s):  
Vitalii V. PECHATKIN ◽  
Liliya M. VIL'DANOVA

Subject. As digital technologies spread across all industries, active processes of digital transformation need to be managed both nationally and regionally. Assessing the extent of digitalization across types of economic activities is the key issue for setting up the socio-economic development strategy of the region and evaluating its efficiency. Objectives. The study is aimed to formulate and test methodological approaches to assessing the digitalization in types of economic activities and the potential of digital technologies for the real economy. Methods. The study relies upon the dialectical method, systems approach, questionnaires, expert approach, interpretation of empirical facts through tables, etc. Results. We devised a methodological approaches to assessing the extent of digitalization in types of economic activities across regions. The approach combines the quantification and evaluation of the process and helps determine the extent of local digital transformation at the regional level. We devised and tested the methodological approach to rating digital technologies, which have the high potential for raising the competitiveness and resilience to competition of the industrial sector in the Russian regions. As opposed to the existing approaches, the approach accounts for the current scale of digital technologies in the national economy, the potential for growth in the demand and supply in the domestic and foreign markets, and the potential for import substitution with respect to foreign technologies and products. Conclusions and Relevance. What makes the proposed methodological approaches more preferable is that they help assess not only the extent of digitalization in types of economic activities and the predominance of certain types in industrial enterprises, but also determine their potential for import substitution in terms of digital security.


Author(s):  
Felix R. Doldán Tie ◽  
Paula Luna Huertas ◽  
Francisco Jose Martínez Lopez ◽  
Carlos Piñeiro Sanchez

The practice of information systems/information technology (IS/IT) outsourcing is a major issue which has received much attention, as shown by the extensive literature on the topic. However, most works on outsourcing have focused on theoretical topics, and there are but a few empirical, quantitative studies. This chapter presents an empirical study of IS/IT outsourcing in Spain, which has been conducted along the lines of prior research carried out in different countries, and which focuses on the types, functions and targets of outsourcing contracts. We also attempt to examine the influence that this practice may have on the organizations’ management structure. A survey carried out on 530 Spanish firms has shown that 50% of Spanish large firms have outsourced part of their IS/IT, whereas outsourcing is practiced by 20% of medium-sized enterprises. Finally, it has been observed that the most frequently outsourced activities in Spain are hosting and Internet-related services.


2010 ◽  
pp. 1333-1359
Author(s):  
Felix Doldan Tie ◽  
Paula Luna Huertas ◽  
Francisco Jose Martinez Lopez ◽  
Carlos Pineiro Sanchez

The practice of information systems/information technology (IS/IT) outsourcing is a major issue which has received much attention, as shown by the extensive literature on the topic. However, most works on outsourcing have focused on theoretical topics, and there are but a few empirical, quantitative studies. This chapter presents an empirical study of IS/IT outsourcing in Spain, which has been conducted along the lines of prior research carried out in different countries, and which focuses on the types, functions and targets of outsourcing contracts. We also attempt to examine the influence that this practice may have on the organizations’ management structure. A survey carried out on 530 Spanish firms has shown that 50% of Spanish large firms have outsourced part of their IS/IT, whereas outsourcing is practiced by 20% of medium-sized enterprises. Finally, it has been observed that the most frequently outsourced activities in Spain are hosting and Internet-related services.


Author(s):  
Pavlo Demchenko

In today's complex conditions of enterprise operation, innovation processes in most of them are characterized by a set of complex complex organizational measures, which can be implemented only in the implementation of sequentially parallel information-saturated stages of making various management decisions. The article improves and further develops the criterion evaluation of economic decisions on innovation and investment development of the enterprise under conditions of uncertainty and conflict of production and financial and economic processes while taking into account the peculiarities of investment and innovation processes. Based on research papers, the article improves the classification of decision criteria based on the methods of potential theory and the principles of maximum uncertainty functions and inaccuracy functions, which are related to the values of the estimation functional, characteristics of Bayesian sets and Bayesian surfaces.It is proved that for the formation of criteria for certain aspects of ensuring the appropriate level of innovation and investment development of industrial enterprises in modern economic conditions it is advisable to use decision criteria based on methods of obtaining point estimates of the unknown vector of a priori probability distribution in a set. It is proposed to use the Khomenyuk criterion, as well as the Rosenbluth and Herfindahl-Hirschman indices, which are used in determining the indicators of evaluation of the results of economic activity of mining and processing enterprises of Ukraine. The calculations allowed to determine the company with the most stable level of innovation and investment development during the study period. Based on the research, it is concluded that the results of assessing the level of stability of sustainable innovation and investment development of mining and processing enterprises taking into account the risk obtained using the proposed methodological approach can be used for further development of methodology for criterion evaluation of business decisions and conflict in the course of production and financial and economic processes.


Author(s):  
Iryna Postolenko

The article considers the practical implementation of educational programs in modern schools in Great Britain. The main methodological approaches to the implementation of the content of educational subjects are studied. The peculiarities of the organization of the pedagogical process during the study of core and basic subjects in British schools are studied in detail, namely, English, mathematics, science, art and design, citizenship, technology and design, geography, history, ICT, modern foreign languages, music, physical education, personal, social, health education, religious education. The pedagogical process in terms of the educational component, organization of extracurricular work with students is also analyzed. It is noted that the involvement of students in extracurricular activities helps to improve their academic performance. Students are mainly involved in the following activities: Dance, Drama, Life-saving, Swimming, Gymnastics, Athletics, Volleyball, Netball, Football, Badminton, Aerobics, Basketball. They also have the opportunity to attend science and mathematics clubs, computer clubs, languages and technology clubs, additional Mathematics groups, participate in the choir and the School Orchestra. Leisure clubs allow students to unite in common interests, engage in music, dance, theater, scouting, sports, games, design, decorative jewelry, and more. In their free time, students visit other schools, industrial enterprises, and farms. Students also have trips to the sea, local churches, art galleries, museums, theaters, etc. In addition, students participate in sports competitions not only among students in the school but also students of other schools in the county. Keywords: educational programs; educational activity; methodological approaches; key stages of education; British schoolchildren; core subjects; basic subjects; extracurricular activities.


Author(s):  
Sunghun Chung

This review surveys recent study on the business value of Information Systems (IS). The topics covered include theoretical and empirical evidence on the business value of IS, the productivity using Information Technology (IT), the firm value with IT, IT and firm boundaries, IT outsourcing, and supply chain with IT. This work critically reviews the growing literature on improving market performance through IS, discusses various perspectives, raises conceptual and empirical concerns, underscores challenges for further development of this literature, and provides directions for future research.


Author(s):  
Georg Hodosi ◽  
Lazar Rusu ◽  
Seungho Choo

Information Technology Outsourcing (ITO) is well spread among large Multinational Companies (MNCs) in Europe, and it is expected to increase even more. The authors’ focus is the service buyer company who needs a well working relation with its ITO supplier for handling emergent issues, daily operation and events that have not been foreseen. In the last years, an increasing attention has been paid to improve ITO relationship. Reviewing the research literature, they have not found any studies about Influential Factors (IFs) that could improve the ITO relationship, nor, how risk factors are interrelated to ITO relationship. Therefore, the authors address this issue by providing 15 IFs that could improve the ITO relationship for large MNCs and their providers and could help the service buyers companies’ to concentrate on these IFs. Additionally, the authors developed a framework that could support the ITO decision makers in both mitigating the risks and improving the ITO relationship.


Management ◽  
2019 ◽  
Vol 29 (1) ◽  
pp. 130-142
Author(s):  
Yurii Grechyshkin

Introduction. The practice of the world business shows that in order to achieve a competitive advantage it is advisable to use a benchmarking tool that allows you to use the experience of your competitors who have succeeded in different areas of activity. Of particular relevance is the use of benchmarking in the field of innovation, in particular in the IT industry, which has become a key driver of economic growth and productivity in many countries.Hypothesis. High-quality IT consulting services require not just the automation of a single process or the implementation of a specific system, but the modernization of the organization's IT infrastructure, bringing it into line with business goals. The practical implementation of such projects allows the organization to get a real increase in production efficiency. Complex consulting projects based on benchmarking are characterized by the use of various services in the field of IT consulting and consulting in related branches of management on the basis of borrowing the best world experience.The purpose of the study is to develop methodological provisions and practical recommendations for the implementation and use of benchmarking technology in the business management system.Methodology. The theoretical and methodological basis of the research is the scientific works of domestic and foreign scientists and specialists on the planning and organization of benchmarking outsourcing of IT services. The following methods are used in the research process: theoretical generalization, analysis, synthesis.Results: main types and stages of benchmarking realization are considered, application of the concept of benchmarking in the system of management of IT business processes is substantiated; developed methodological and practical recommendations for the implementation of benchmarking in the IT sector on the basis of outsourcing. The connection between the concepts of business process benchmarking and outsourcing has been established, a detailed description of business processes in IT outsourcing enterprises is given.Conclusions: The creation of a benchmarking platform that will increase the innovation activity of IT companies and will help to forge closer links between IT companies, industrial enterprises and public authorities.


Author(s):  
S. Nazarenko

In today's competitive environment, it is important to improve the activities of enterprises through the introduction of information technology outsourcing. The introduction of the latest developments and programs in the management and production activities of enterprises is the key to their success in the market, as it contributes to the rational use of resources, improving quality processes in enterprises. The main processes and trends in the functioning of the Ukrainian IT market are studied. It is established that the IT outsourcing sector will remain the main factor of positive changes in the near future and will increase the provision of services for both domestic needs and high-tech exports. The most developed sectors of IT outsourcing use are identified. The main problems of functioning of the IT sector, including outsourcing of information technologies, are revealed, and perspective directions of growth of the IT market are established. The direct and concomitant results of the use of information technology outsourcing for enterprises are determined. The necessity of state support for the development of information technology outsourcing and the introduction of the use of IT technologies in the activities of public authorities is substantiated.


Author(s):  
N. N. Krivtsova ◽  
Y. A. Salikov ◽  
E. A. Reznikova ◽  
M. A. Karpovich

The need to assess the resource availability of the industrial enterprise at each stage of the life cycle is due to the limited resources available and the increase of their effective and rational use. The development of a methodical approach to assess the resource availability of the industrial enterprise will allow not only to diagnose the problems that have arisen or may arise at a particular stage of its life cycle, but also to anticipate changes in the market situation and respond in a timely manner. Resource provision is a set of necessary types of resources that an industrial enterprise has and uses them rationally in order to extend or restore the appropriate stage of the life cycle and further development. For industrial enterprises, the highest priority are such components of the resource provision of activities by stages of the life cycle as: "Financial and information-intellectual resources" at the stage of birth, "Personnel and production and sales resources" at the stage of growth, "Image resources and resources of economic security" at the stage of maturity and "Resources of economic security and information-intellectual resources" at the stage of crisis. On the basis of the presented priority components of the resource provision of the industrial enterprise the system of indicators, allowing to measure and control the process of its development at each stage of the life cycle, was formed. The developed methodology of assessing the resource availability of the industrial enterprise at various stages of its life cycle includes 7 stages. According to the presented methodological approach, the assessment of resource availability of actually operating industrial enterprise at various stages of its life cycle was carried out. The meat-processing enterprise of the Voronezh region (LLC "X") was chosen as the one under study. The resulting value of the integrated integral indicator of resource availability of the industrial enterprise under study at the stage of birth corresponds to a very high level, at the stage of growth - to the average and at the stage of maturity - very low, which indicates the lack of priority components of resource provision to overcome the growth stage and the transition to the stage of maturity. Based on the assessment of resource availability the possible directions for the further development of "X" LLC were proposed.


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