The peculiarities and procedures of the transition to outsourcing by construction companies in Ukraine

Tetiana Danyliuk,Myroslava Kushnir,Serhii Voitovych,Oleksandr Tovsteniuk,Liubov Lipych

doi:10.21511/ppm.15(2).2017.06

Abstract

The article analyzes the outsourcing services market and its consumption volumes in the recent years, assesses the industry range of outsourcing by paying close attention to the construction services companies, and evaluates the general trend in the development of the construction industry market in Ukraine. The paper determines the growth in demand for outsourcing services by construction companies by singling out outsourcing as an instrument of management in the construction industry. It demonstrates the expediency of the use of outsourcing for construction industry companies and describes the main reasons that prevent the making of decision regarding the transfer to outsourcing. The main objectives and the procedure of transition of construction companies to outsourcing are formulated. Given the importance of certain types of construction works, six stages of transition to outsourcing by construction companies were identified.

Highlights

In the absence of or with overloaded skilled professionals, a construction company may use the resources of third-party outsourcing companies that specialize in carrying out certain business processes
Business processes by the company itself or the transfer to outsourcing is the basis for the analysis During the fifth phase the construction company of the processes of management, production and should assess the possible results of the use of outsales based on strategic perspectives
Outsourcing is a major factor of the modern business, while outsourcing in the construction industry is an important reserve for the construction industry’s development

Summary

INTRODUCTION

Zhiwei, Zhu, Kathy, Hsu and Joseph Lillie (2001) and Lebedev (2015) understand outsourcing as characterize outsourcing as a transfer of respon- optimization of activities aimed at cutting costs, sibility for certain business functions focusing reducing the time of execution, increasing profits on the relationship between the seller and the and enhancing competitiveness. In Ukraine, construction companies consider It should be noted that all studies of the phasoutsourcing with certain reservation Such de- es of transition to outsourcing were done by cision always brings changes to the company’s scientists mainly in relation to industrial and activities. For the company’s management the transition nature and types of outsourcing, substantiatto outsourcing is an opportunity to reduce costs ing the approaches to its definition and the and improve quality, and for employees it is a analysis of its use by the companies. Four phases of the transition to outsourcing not taking into account the process of selection and assessment of the outsourcing company

PRESENTATION

Analysis of the possible results of the use of outsourcing

Adoption and implementation of the decision about the transfer to outsourcing

Findings

CONCLUSION AND RECOMMENDATIONS FOR