Outsourcing in the automotive industry of the Kyrgyz Republic: Development prospects

Abstract

The study was conducted to assess the prospects for the development of outsourcing in the automotive industry of the Kyrgyz Republic and its impact on productivity, economic efficiency, and innovation in the industry. The study used statistical analysis methods to process data on production and employment from official sources, a comparative analysis of successful examples of international cooperation, and methods for assessing risks associated with outsourcing. As a result of the study, it was established that outsourcing in the automotive industry of the Kyrgyz Republic helps to reduce operating costs and increase production efficiency. It was also determined that the transfer of non-core functions to external contractors allows companies to focus on key processes, which accelerates the introduction of innovations. It was also confirmed that outsourcing helps to attract international companies, stimulating economic growth, and creating new jobs. However, the risk of loss of control over the quality and timing of tasks, which requires the development of effective mechanisms for interaction with contractors to minimise possible negative consequences, is identified. The study showed that the successful implementation of outsourcing requires the active participation of government agencies to create a supportive regulatory framework and incentives to attract investment. The results demonstrated that outsourcing contributes to the development of related industries such as auto parts manufacturing and IT services, which in turn stimulates the growth of the local labour market. In the long term, the use of outsourcing can become a key factor in increasing the competitiveness of the country's automotive industry in the international arena. The study provided valuable data on the impact of outsourcing on the efficiency and innovative development of the automotive industry, which can serve as a basis for developing strategies to optimise production processes and improve economic performance in this industries