Publication Details
Abstract
Given the growth of the service sphere, outsourcing is certainly one of the strategic tools to improve efficiency and competitiveness, including in small business development in Uzbekistan. In this context, outsourcing services serve as a known process for cost applications and financial improvement, however, the financial impact of this type of service remains empirically unclear and contextual. While previous literature has tended to be either descriptive or theoretical, not much has incorporated regression analyses at the regional level that can characterize the dynamic relationships between outsourcing expenditures and main financial variables. The purpose of this study is to evaluate the influence of outsourcing services on the financial viability of small enterprises by analyzing the dependency between outsourcing expenses, income, net profit, and liquidity through time series modeling. The results suggest that there is a positive relationship, when the outsourcing is done properly is a positive impact on the financial health, however the magnitude and consistency of these results varies depending on the conditions. The paper contributes towards an increased understanding of outsourcing in the context of a regional economy combining theoretical interpretation with time series econometric analysis. These findings suggest that while outsourcing is often treated as a purely operational tool, it should be treated as a strategic mechanism with the appropriate supportive institutional policies in place, as well as further research focused on micro-level data and long-term sustainability.