OUTSOURCING MEANS AT AGRICULTURAL BUSINESS ENTERPRISES: EXPERIENCE AND PROSPECTS OF USE

Abstract

The article considers the development of outsourcing relations in the world, the role of outsourcing in the development of the world economy. There are some researches on this issue that describe certain aspects of the functioning of organizations that use outsourcing in their activities, which, however, without considering the industry specifics of using outsourcing. In particular, this applies to the theoretical and practical use of outsourcing in the agricultural business. Taking into account the dynamic of outsourcing development, its research requires constant scientific exploring, updating knowledge in this area, comprehensive analysis, generalization of modern outsourcing practices, and formulation of the precise scientific and practical recommendations. Outsourcing relations in the agro-industrial business of the Netherlands, Great Britain, Poland and Japan are analyzed. The advantages and risks of outsourcing and selection of outsourcers to perform certain functions of the enterprise are systematized. It has been proven that companies that use only internal opportunities instead of external ones (instead of outsourcing) are less innovation-oriented and cannot take advantage of opportunities to develop new value added products. It is noted that highly specialized outsourcers can do much more to create added value at a lower cost than any integrated enterprise. There are basic criteria for choosing an outsourcer determined. The expected benefits from the use of outsourcing are singled out: savings in operating costs, reduction of investment costs, supply of fresh capital, conversion of constant value into variable, improving the quality of products and services, improving the adaptability of the enterprise, access to modern technologies, focus on key activities and solutions associated with existing features. The existence of a strong positive correlation between the level of outsourcing development and production volumes, trade volumes, employment level and innovation level has been proved. The reasons for the low level of implementation and development of outsourcing in domestic vertically integrated agricultural enterprises are identified.