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Abstract: In a society based on knowledge, in which the level of specialization of the employees grows in one area and decreases in others, it has become a common practice of organizations to outsource certain processes/services thus increasing the degree of dependence between companies.
In this article we will analyze the evolution of the concept of outsourcing from the perspective of the advantages it offers, but also referring to its limitations. In the current geopolitical and socioeconomic context, we aim to highlight the risks that may occur in the international relationships between organizations.
The main motivation for the decision of outsourcing was cost reduction and therefore obtaining a competitive advantage. Hereby will be exposed another important aspect of the process of outsourcing, namely the possibility to increase the quality of the product/service through the outsourcing of knowledge management in its production process.
Keywords: outsourcing, knowledge management, decision, costs
INTRODUCTION
The outsourcing process is debated for a long time in the business literature, many of the companies using this strategy in order to reduce costs (for instance, almost 40% of the Nokia mobile production has been outsourced).
Outsourcing is important for every business, regardless of its size or geographical position. Certain areas have developed worldwide over time and are recognized now for a certain kind of activities that are outsourced to them, according to strategic goals of many companies.
Outsourcing has a special importance not only for organizations that choose to carry out such activities, but also for the citizens of each country involved. Governments pursue raising the prosperity of their own citizens so that they can restrain these modern economic practices, sometimes through legislative measures or additional taxes.
Outsourcing involves the management of complex elements related to logistics, investment, and contractual types. Organizations are grappling with a lot of factors that influence the process of outsourcing and it is absolutely necessary to consider all the dimensions of the process to adapt to rapid changes in global economy.
The expression "outsourcing" comes from the american terminology (outsourcing - "outside resourcing") and was used in economic language, to indicate the use of external sources to carry out the activity of a company, which traditionally use internal resources.
Outsourcing involves the practice of transferring work, responsibilities and...