P'yanov A.I.

PhD in Sociology, Assistant Professor,

North Caucasian Federal University, Stavropol

Semykina I.V.

Student, North Caucasian Federal University, Stavropol

MODERN ASPECTS OF DEVELOPMENT AND USE OF OUTSOURCING IN THE RUSSIAN FEDERATION

Modern world tendencies allow us to speak about the growth of competition, the emergence of innovative technologies to optimize many business processes in the organization, thereby reducing costs which in turn lead to an increase in the competitiveness of the business units. One of these tools allow you to effectively debug business processes outsourcing is seen, which is associated with the release of the organization of routine processes. Current representations define outsourcing as the transfer of business processes and functions of the organization outside the executor – the supplier – in whole or in part, for a certain period of time [1, p. 33]. This suggests that some of the costly administrative and specialized organization for efficient operations outsource, saving money, getting the flexibility and accuracy of business processes.

The personnel management system, outsourcing is a lease functions a certain organization, the use of personnel to perform the part of their own projects [2, p. 87].

Development of outsourcing decomposed to such a concept as “offshoring”. In the economic literature and practice, the term “offshoring” means the attraction for performing certain tasks (business functions) by a third party located abroad. Why offshoring is considered as outsourcing abroad. Accordingly, the off-shoring of staff serves innovative human resource management technology organization, with which the transfer of jobs to the same company from one country to another in order to minimize staff costs and increase capitalization [3, p. 86].

In modern conditions offshoring becomes a tactic of competitive advantage for companies not only in the world, but also in the domestic market. Thanks to the staff offshoring companies can minimize their costs by transferring production to countries with cheaper labor. Just use offshoring strategy allows companies not only to minimize costs and increase capitalization, but also develop more rapidly. However, the ratio of the spread of off-shoring is ambiguous because it is damaging to the internal labor market.

The use of both outsourcing and offshoring are usually associated with large corporations, but studies conducted by reputable international organizations to provide audit, tax and advisory services to private and public companies Grant Thornton International has revealed that currently around 40 % of medium-sized businesses at a global level using or planning to use outsourcing services. This figure rises to 43 % among large enterprises, which have the economies of scale, and this service can give good results. The most popular are the operations related to taxation, IT-technologies and personnel administration. The share of transactions submitted for outsourcing is presented in Figure 1.

Figure 1 – The share of transactions submitted for outsourcing, %

However, when such significant figures, many companies distrust towards outsourcing non-core business processes and are cautious in this matter. Here the experts identified three key aspects: First, the previous negative experience, and secondly, not wanting to lose control of key processes, and thirdly, high costs for the organization of the outsourcing process. Obstacles hindering the development of the outsourcing companies are presented in Figure 2.

Figure 2 – Obstacles hindering the development of the outsourcing companies, %

However, the company is actively using outsourcing, have the advantages of its implementation. For example, reduced the cost of non-core business processes that have a positive impact on the sustainability performance of business operation; there is an opportunity to focus employees on the company's main objectives; involve narrow specialists without expanding its own employees of the state. The benefits of outsourcing are presented in Figure 3.

Figure 3 – The benefits of outsourcing, %

In Russia, the development of outsourcing non-core business processes begins with the 1990s, and is generally in line with global trends, but it is worth noting that the volume of the market and the range of services largely lag behind the developed countries.

So according to the rating agency “Expert RA” in 2011, the total revenues of the leading providers of outsourcing functions HR and accounting amounted to 5 bn. rub., while in 2015 this figure reached 6 bn. US dollars, which allows to talk about the significant development and growth of the market concerned [4].

In the structure of revenues in areas of outsourcing non-core business processes in the Russian accounting and tax accounting is the most popular service, accounting for 47 %; followed by service payroll – 27 %. Revenue breakdown by areas of outsourcing non-core business processes in Russia is represented by Figure 4. 

Figure 4 – Revenue breakdown by areas of outsourcing non-core business processes in Russia

The growing need for designated areas due to the fact that companies are interested in high-quality preparation of all financial and tax reporting, as well as providing support in collaboration with the regulatory authorities.

Payroll in our country is more in demand than service personnel records and paperwork. However, the development of this service hinders the presence of tax minimization factor payroll through the payment of salaries for the “gray” schemes, in which the calculation functions cannot be outsourced.

There is a high demand for services in the preparation of statements in accordance with Russian Accounting Standards (RAS) and International Financial Reporting Standards (IFRS). Clients in the area of reporting on the RAS are mostly small and medium-sized businesses that require high-quality reporting to attract funding. Demand for services related to the preparation of reports on the IFRS, as a rule, due to the factor of development of investment processes, so this reporting is required when lending; for access to the exchange; for shareholders of information and business management that is used as a tool to identify key performance indicators.

Unlike western companies, who for a long period of time attract contractors to perform not only accounting and operational functions, but consulting services (risk management, compliance, financial planning etc.), Russian companies with sufficient care resort to such contractors. However, this process is gaining increasing attention in recent years.

Certainly the use of outsourcing has many advantages, which include the traditional cost reduction and increased efficiency of business processes. However, Russian demand for services outsourcing of financial services and accounting (FA) is due to the following factors:

- The growth of the tax burden from the 2012 salary was more than 43 thousand rubles, that makes us think about optimizing their costs;

- Growth in lending to small and medium-sized businesses and the need to prepare quality reports to obtain financing;

- Engaging in outsourcing service companies, which do not need to carry out the audit reports (organizations with revenues of up to 400 million rubles and the sum of the balance sheet assets of not more than 60 million rubles);

- The need for foreign companies to transform regular reporting under RAS in management reporting and harmonization of the methodology of the Russian accounting to international standards, in which the parent companies operate;

- Intensification of interest in outsourcing from the state.

According to reports of “Expert RA” the amount of revenue the companies working on the Russian market of outsourcing of accounting functions increases, but if you look in terms of growth in total revenue, then there is a significant decline. Changes in companies operating in the Russian market of outsourcing of accounting functions for the years 2010 – 2014 are shown in Figure 5.

Figure 5 – Changes in companies operating in the Russian market of outsourcing of accounting functions for the years 2010 – 2014

However, despite the significant decrease in the dynamics of growth of the main indicators, the revenue growth in Russian companies is observed every year this area is 15 – 20 %. The key drivers of growth, industry experts include three key components.

Firstly, information industry; since introduction of electronic document management systems, reduction of IT-solutions, the implementation of remote working systems – a positive effect on the cost of operations, outsourcers companies endure back-offices in regions with cheap labor, without prejudice to the basic processes.

Second, despite the increase in the tax burden, the amount of taxes every year increases, as companies are interested in building a transparent business that allows you to pay part of the functions of a third party contractor with minimal risk.

Third, an economy of scale when outsourcing company efficiently loads human resources, the objective function becomes productivity. As a rule, this practice is much more difficult to implement in the company, for which the non-core business process [4].

At the same time it can be traced significant obstacles to growth-outsourcing companies in the Russian Federation:

- Inertia owners. Many owners are not willing to give up control of bookkeeping outside company because of the fear of losing control over significant operations;

- The complexity of the movement document. Currently, electronic document management system in Russia is at the implementation stage that, on its turn, creates the need to turn paper documents. Further complications arise from the personnel documentation in connection with the fact that the responsibility for the storage of documents entrusted to the company-customer, besides access to personnel records is regulated by the Federal Law “On Personal Data”;

- The cost of services the company-outsourcer. This price does not always lower than the wages of a similar “standard unit”;

- Lack of flexibility. This is reflected in the fact that most small and medium-sized companies, outsourcers are considering outsourcing accounting and HR services exclusively from the point of view of interaction with the state – for the purpose of tax accounting. Many companies require customers to record keeping, not only and not so much from the point of view of taxation, as from the point of view of management reporting;

- Difficulty in the change of contractor. It lies in the fact that the inertia of the owners does not allow them to quickly change contractors, regardless of the number of errors and the convenience of working with them.

Summarizing, we can say that in Russia outsourcing services are more in demand by large companies with a transparent and fully legal business, as well as foreign companies operating in our country.

In the segment of small and medium enterprises still has a significant share of shadow capital, so companies do not tend to attract outsourcers. Currently, however, there is a tendency to build a more transparent business, including through the ongoing legislative changes, as well as the development of the investment market.

Negative impact on the development of the Russian market affects lack of awareness about outsourcing services to potential customers, but also not conducive to outsourcing of the economic situation, combined with the general immaturity of the Russian market.

Among Russian companies there is such an element as a distrust of providers. In addition, the company plans to bring the accounting functionality of outsourcing, often use the services of private accountants, the share of which according to various estimates up to half of the market of outsourcing of accounting functions.

Outsourcing is developing in Russia different from Western countries by. While in developed countries initially developed HR and FA-outsourcing services, and then there was the market of IT-outsourcing, in Russia the situation is reversed. Thus, we can say that with proper awareness and the availability of qualified service providers, Russian companies willing will attract outsourcers to perform non-core business processes.

References

1. Kutuzova, T. Outsourcing as factor of increase of efficiency of activity of the enterprises / T. Kutuzova, O. Rudenko // Actual problems of economy and management. – 2015. – No. 4 (8). – P. 32 – 36.

2. Savchenko, I. Benefits of outsourcing in the system of personnel management / I. Savchenko, I. Esaulova // The First International Conference on Economic Sciences (Vienna, 2014). – 2014. – P. 87– 89.

3. Makarova, I. Innovative personnel technologies: safety and protection of the labor law of citizens in the conditions of globalization of labor market / I. Makarova // The International cooperation of the Eurasian states: policy, economy, right. – 2015. – No. 2 (3). – P. 85 – 91.

4. Official site of RAEX rating agency («Expert RA») [An electronic resource]. – URL: http://www.raexpert.ru/ratings/outsourcing/ (date of the address: 3/15/2016).