DILEMMA OF CHOOSING A DEVELOPMENT STRATEGY IN PRACTICE OF INTERNATIONAL BUSINESS 

Markeeva Galina Aleksandrovna, applicant, Penza State University (40 Krasnaya street, Penza, Russia), galochkamarkeeva@mail.ru
Mikhneva Svetlana Georgievna, Doctor of economic sciences, professor, head of sub-department of economics and world economy, Penza State University (40 Krasnaya street, Penza, Russia), econm@pnzgu.ru 

338.24 

Background. At the present time, each organization faces a question of increasing the level of economic activity in conditions of fierce competition. Business executives purposefully seek to reduce production by resorting to various methods. A modern way of effective management of an organization is outsourcing, through which non-core business functions or business processes «are given» to specialized companies to perform certain tasks. Each head of the firm faces the question of the rational conduct of business: to produce in-house or outsource? The article objective is to analyze the impact of the strategy of outsourcing and insourcing on enterprise’s performance.
Materials and methods. Analysis of the choice of outsourcing and insourcing was conducted on the basis of a dilemma of enterprise’s internal and external sources, allowing to assess the efficiency and effectiveness of outsourcing, as well as to examine the economic advantages and disadvantages of its use. In the study of this question the authors used the comparative method described by M. T. Dudzik, which includes a set of criteria for rational decision-making. The researchers analyzed the methodology of outsourcing in the western literature.
Results. The result of the study showed the distinction of outsourcing and insourcing strategies of an enterprise. The article considers in details the dilemma of choosing internal and external resources, advantages and disadvantages of outsourcing and insourcing. The conducted strategic analysis helped to identify key strategic competences of an organization, which are reasonable or feasible to outsource. The authors also analyzed precise criteria for selecting an outsourcing partner.
Conclusions. Exploring the issues of the choice between outsourcing and insourcing of an organization revealed a whole new perspective in the modern enterprise structure, which can be modified depending on the chosen strategy. In enterprise activity the outsourcing methodology helps to create efficient and competitive advantages based on quantitative analysis of allocation of business functions or business processes. Therefore, each executive faces the problem of alternative choosing of insourcing or outsourcing strategy, the correct decision on which will affect the future of his/her company. The relevance of this issue is very significant, so the authors have developed a complete analysis of external and internal factors of outsourcing and revealed its advantages and disadvantages. 

outsourcing, insourcing, external and internal factors, dilemma of choice, outsourcing services, business functions of a company, contract allocation, outsourcing partner, economic advantages and disadvantages of outsourcing operations. 

1. Mikhneva S. G., Markeeva G. A. Izvestiya vysshikh uchebnykh zavedeniy. Povolzhskiy region. Obshchestvennye nauki [University proceedings. Volga region. Social sciences]. 2013, no. 1 (25), pp. 156–162.
2. Dudzik M. T. Gospodarka Materiałowa i Logistyka [Management and logistics materials].1997,no.2,pp.24–28.
3. Chapman R. B., Andrade K. Insourcing after the Outsourcing. MIS Survival Guide. American Management Association. New York, 2007, 55 p.
4. Harrison S. Outsourcing and the «New» Human Resource Management. Published by IRC Press. Industrial Relations Center, Queen’s University. Kingston, 2009, 103 p.
5. Kalendzhyan S. O. Autsorsing: delegirovanie upravleniya v strategii razvitiya kompanii [Outsourcing: delegation of mamagement authority in the strategy of company’s development].Moscow:Katalog,2001,260 p.
6. Manoylenko O. V. Vestnik Mezhdunarodnogo slavyanskogo universiteta [Bulletin of International Slavic University]. 2006, vol. IX, no. 1, pp. 8–12.