International Outsourcing: Incentives, Benefits and Risks for the Companies in See Countries

Outsourcing is promoted as one of the most powerful trends in modern management. The rationale for outsourcing some functions and/or processes includes substantial financial economies, increased ability to focus on strategic issues, access to technology and specialized expertise, and an ability to demand measurable and improved service levels. This paper considers a range of core issues related to the establishment of outsourcing partnerships with the participation of companies from South Eastern Europe. Special emphasis is put on the incentives, benefits and risks associated with the realization of outsourcing partnerships with vendor companies from SEE transition countries. Strategic outsourcing as a main type of such a partnership helps firms to align their competitiveness priorities, to focus management attention on long-term growth and innovation opportunities, and to target resources to those tasks firms do best. Some evidence is suggested implying that international outsourcing generally has a positive impact on the organizational performance and competitiveness enforcement in the companies within the region.