Risk Management in the Decision Making Process Concerning the Use of Outsourcing Services in the Bulgarian Armed Forces

Abstract

Abstract Outsourcing services in the armed forces are a promising tool for reducing defence spending which use shall be determined by previously made accurate analysis of peacetime and wartime tasks of army structures. The decision to implement such services allows formations of Bulgarian Army to focus on the implementation of specific tasks related to their combat training. Outsourcing is a successful practice which is applied both in the armies of the member states of NATO and in the Bulgarian Army. Using specialized companies to provide certain services in formations provides a reduction in defence spending, access to technology and skills in terms of financial shortage. The aim of this paper is to analyse main outsourcing risks that affect the relationship between the military formation of the Bulgarian army, the structures of the Ministry of Defence of the Republic of Bulgaria and service providers, and to assess those risks. The basic steps for risk management in outsourcing activities are determined on this base.