THE IMPACT OF OUTSOURCING IMPLEMENTATION ON SERVICE COMPANIES

Outsourcing, as a managerial phenomenon, is gaining importance and attention among both scientists and entrepreneurs. Despite an increasing outsourcing practice among business units, the nature of factors affecting growth of the use of outsourcing on service companies have not received adequate attention in the scientific literature. The aim of paper is to provide in-depth analysis of factor affecting the spread of outsourcing practice among service companies. A comprehensive review of the literature was conducted in the fields of services, to achieve a thorough understanding of the issues involved, and identify the crucial factors affecting the use outsourcing in service companies. Literature analysis shows that spread of outsourcing is affected by external and internal factors. Most important internal factors affecting growth of outsourcing use in service companies are strategic and economic factors.