Abstract

This paper examines the impact of outsourcing materials and services on labour costs in two groups: industrial and construction enterprises, and services enterprises in Poland during the period 2005-2013. The analysis of this dependency was conducted on the basic of aggregated data coming from Polish enterprises classified in these two groups according to the PKD 2007. The preliminary analysis showed that Polish industrial and construction, and service enterprises applied both types of outsourcing, but outsourcing services had more important effect on labour costs than outsourcing materials. Econometric analysis confirmed that only outsourcing services had a positive but differential impact on labour cost per 1 worker in two groups, while outsourcing materials was responsible for negative, however weak, impact on these costs.

Highlights

  • The last few decades were marked by the growing popularity of outsourcing understood as separation of specific processes or functions outside and transferring them to capital-dependent or capital-independent domestic and foreign suppliers

  • Quantitative reduction and qualitative adaptation in the level of employment was followed by decline in the overall level of labour costs, i.e

  • The purpose of this paper is to review the impact of outsourcing on the formation of labour costs in Polish companies, as well as analysing the strength of the relationship between these variables

Read more

Summary

Introduction

The last few decades were marked by the growing popularity of outsourcing understood as separation of specific processes or functions outside and transferring them to capital-dependent or capital-independent domestic and foreign suppliers. This solution resulted in the reorganization of enterprises and their resources. Quantitative reduction and qualitative adaptation in the level of employment was followed by decline in the overall level of labour costs, i.e. reduction of the fixed costs and enhancement of variable costs depending on the production volume. Anna Grześ wages, and labour productivity were different in economy and company scales, i.e. positive [eg. 223-240], scant or neutral for the economy, positive for highly skilled workers [Crino, 2010, pp. Anna Grześ wages, and labour productivity were different in economy and company scales, i.e. positive [eg. Linden et al, 2011, pp. 223-240], scant or neutral for the economy, positive for highly skilled workers [Crino, 2010, pp. 253-256] or negative for semi-skilled or less specialised work [Baumgarten et al, 2013, pp. 132-152; Egger et al, 2001, pp. 257-272]

Objectives
Methods
Findings
Conclusion

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.