Outsourcing as a financial tool for cost management

The article deals with the problems of financial cost management and increasing cash flows. Outsourcing as a business model allowing to save on expenses and release current assets emerged in the early 20th century. In crisis situations, the most efficient approach out of all types of outsourcing examined in the paper seems to be a combination of operational and joint venture outsourcing. Non-core activities outsourcing is assessed by companies as highly efficient, which demonstrates that outsourcing is regarded both as a tool for business transformation and as a way to reduce expenses. The article suggests a model for the calculation of operation costs reduction and fiscal effect as well as for the assessment of risk arising from operational outsourcing of a service.

outsourcing, finance management, costs, financial resources, operational outsourcing of a service