In a competitive market environment only those businesses can achieve success that managed to minimize their costs while providing high-quality products and services. Development of competition in the 20th century as the main driving force of economic globalization and its transition to in the beginning of the 21st century to a new level has led to the emergence of a new concept of business management.
In many countries, powerful corporations and small businesses undergo various kinds of restructuring and changes of their structure in order to increase their competitiveness, to comply with the demands of the global market, and to ensure their future success. They use both traditional classical and innovative management concepts. One of such concepts is outsourcing. Outsourcing is used to improve business efficiency and optimize management costs on personnel maintenance. Though it is generally believed that outsourcing is very profitable for business companies and other organizations, this business strategy also causes hot debates that have philosophic, moral, political and economic dimensions. From the moral point of view outsourcing is treated negatively because many people living in developed countries claim that it deprives them of their highly-paid jobs because they are given to specialists representing developing countries and asking for lower wages for the same work. So, many people strongly oppose outsourcing and believe that it ruins stability they have. Outsourcing has an economic dimension because directs investments into the countries with cheap labor resources. It has political dimensions because by means of connecting professionals from different countries, it influences political development of these countries.
Finally, it has a philosophic dimension since outsourcing sharpens constant contradictions between protectionism and liberalism. Despite such hot debates and a big number of scientific publications dedicated to outsourcing, its benefits and disadvantages, this management strategy has become an obligatory condition for competitive success of many modern organizations. The main tasks of this paper include analysis of advantages and disadvantages of applying outsourcing as one of the strategies of development, especially in the IT sphere and e-commerce. We will concentrate on the definitions of outsourcing and we will talk about its types and kinds. We point out the main reasons motivating companies and organizations to use outsourcing. Finally, we will give recommendations concerning using outsourcing for Qatar University.
The Concept of Outsourcing
In the conditions of globalization the world is rapidly changing and it acquires new features. For many centuries countries tried hard to preserve their national identity and closed their borders. In the beginning of the 21st century a different tendency becomes the predominant one. As it is mentioned by Taplin (2008) the countries of the world shift from being purely national to becoming centers of excellence. The same process takes place in business. In order to acquire competitive advantages organizations have to be focused on a certain activity. They have to reach excellence in certain sphere and it means that they cannot spend their resources on solving minor tasks.
As a result, …