Issue: №10/1, 2019
This work defines the term outsourcing as an agreement in which one company hires another company to be responsible for a planned or existing activity that is or could be done internally and sometimes involves transferring employees and assets from one firm to another. The reasons why companies associate their competitiveness with outsourcing are primarily due to the fact that the necessary component of any activity is the cost not only of the core business, but also of managing non-core assets, which are necessary for normal operation. The purpose of this work is to evaluate railway outsourcing opportunities as one of approaches of engaging small businesses in the industry and define the most perspective outsourcing activities of this industry. The main criterion for outsourcing is to reduce costs (due to higher efficiency of outsourcing company) and to improve the quality of services provided. The main condition that must be observed when engaging an external organization is to conduct a tender. The assessment of outsourcing capabilities for the transfer of a part of non-core, ancillary functions to small businesses may consist of several procedures: 1. Identification of organizational features of Ukrainian Railways activity. 2. Defining the goals of outsourcing 3. Identification of directions and necessary conditions for outsourcing. 4. Creating a system of legal regulation of the relationship between the customer and the outsourcing company. 5. Making and implementing decisions about outsourcing. The transfer of certain production and management functions of Ukrainian Railways to third parties is advisable to carry out in a certain sequence. The decision-making process for outsourcing can consist of six steps. Step 1. Consideration of the possibility of outsourcing individual functions Step 2. Assessing own capabilities Step 3. Assessing the capabilities of outsourcing organizations Step 4. Determining the cost effectiveness of outsourcing Step 5. Preparation of necessary agreements, contracts and decision making Step 6. Process control and reporting of the implementation of the decision Outsourcing is advantageous for rail transport for the following reasons: - cost savings; - improving the productivity and wages of the main staff of the railways; - improving the quality of work and services provided; - maintaining the competitive advantages of railway transport. References 1. Aalders R. This is outsourcing: a practical guide. Moscow: Alpina Publisher, 2004. 297 p. (in Russian) 2. Anikin B., Voronov V. The main aspects of the formation of outsourcing. Marketing. 2005. № 4. pp. 107-116. (in Russian) 3. Hroznyi I.S. The use of outsourcing in the process of achieving competitive advantage by an industrial enterprise. Economic announcer of NSU. 2009. № 1. P. 47. (in Ukrainian) 4. Ishchenko A.A. Features of the application of outsourcing and the system of delegation of authority in the process of globalization of the economy. Announcer of economic science of Ukraine. 2005. № 2. pp. 48-52. (in Russian) 5. Lihonenko L.O. Outsourcing as a tool for optimization and improvement of business efficiency. Actual problems of economy. 2005. № 6. pp. 115-125. (in Ukrainian) 6. Utkin E.A. Business management. Outsourcing and company development. Handbook of an economist. 2014. № 1. pp. 13-18. (in Russian) 7. Chukhrai N.I. Outsourcing in Logistics: Marketing Research on Logistics Outsourcing in Ukraine. Transport and Logistics. 2009. № 6 (20). pp. 34–38. (in Ukrainian) 8. McCarthy I.A., Anagnostou A.V. The impact of outsourcing on the transaction costs and boundaries of manufacturing. London: McKevay, 2017. 218 p.
Keywords : Ukrainian railways, outsourcing, railway transport, efficiency, decision-making, requirements, recommendations, small business