An Assessment of the Impact of the Drivers of Outsourcing on Service Delivery In Organisational Networks

Abstract

The COVID-19 pandemic has forced many areas of business to make changes, including: rethinking business strategies;using new ways of organising activities;optimising processes;and using outsourcing. These changes have in turn led to changes in organisational structure and modes of operation in corporate networks. Based on process models and the drivers that give rise to outsourcing, a theoretical model of the impact of drivers of outsourcing on the formation of networks of service organisations was developed. The interfaces between outsourcing and the networking of service organisations were then revealed in order to highlight the components and results of this interaction. The case study method was used to test the theoretical assumptions and the practical application of this model, which revealed the peculiarities of service organisations operating in international and local markets. Along with an analysis of the scientific literature, these case studies justified organisational changes in the delivery of services through differences in the implementation of outsourcing, and highlighted direct links with the drivers of outsourcing. The impact of technological and strategic drivers on the implementation of outsourcing has been identified, where a merger or the creation of a legally-linked entity leads to both vertical and horizontal networking.