Change search
ReferencesLink to record
Permanent link

Direct link
Outsourcing development in woodworking companies: a comparison of Russia and Sweden
2009 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

Outsourcing is increasingly recognized by businesses, universities and economists worldwide as a new management science. We can source out the work because there are others who can do it cheaper, faster and better. Outsourcing is the act of transferring the work to an external business partner. Outsourcing application might act as a good criteria that can be applied when comparing Russian and Swedish woodworking companies. The Russian woodworking industry is currently developing rapidly. The Swedish industry has a significant experience in forestry development. The Russian wood house industry has a good opportunity to study Swedish experiences in order to avoid making the same mistakes in the future. There are many reasons driving to use outsourcing. Most of them are studied in the work and can be grouped into three main factors: 1) cost savings, 2) access to resources, and 3) knowledge, focusing on the business core. Within Master’s thesis work different types of Swedish and Russian companies were compared. It is quite challenging to compare those companies according to their production volume, turnover, and number of employees and so on. Report describes wooden house manufacturers, sawmills, machinery designing company, as well as pulp and paper mill. Russian and Swedish investigated companies have similar off-site onshore outsourcing application, where the vendor conducts work at its location, but in the same region as the client company, for example, in the case of the subcontracting of window and door production. Swedish companies use on-site outsourcing as well, whereas Russian companies don’t use it, because they aspire to produce materials by themselves without outsourcing application. Russian small- and middle-size companies usually don’t use outsourced workers from the professional employee organizations a lot. Big companies like “Mondi Syktyvkar” hire subcontracted people from other organizations, but it is not a typical practice among small and medium size companies in Russia. There is not such a well-structured employee leasing market in Russia. Swedish companies seek to use outsourcing with an aim to reduce net cost of production. Other companies can produce windows, roofs, doors and other components more efficiently and cheaper by focusing on their own core of business. Outsourcing for house manufacturers enables focusing on component assembling, for instance. Developed market of leasing the people helps the companies to be flexible and more effective during market downturns. Swedish woodworking companies buy different components externally, whereas Russian companies try to produce components internally. The question of outsourcing application development leads up to the question of infrastructure and market development. Russian way of business differs a lot from Swedish one, but both of them can be effective in their own countries. It is challenging to apply Swedish way of business to Russian market because of different marketing, economical, political, labour conditions and vice versa. Within the Master’s thesis current challenges of outsourcing development in Russia and Sweden have been analysed. The global financial crisis and increases for custom duties were also studied.

Place, publisher, year, edition, pages
Keyword [en]
Technology, Outsourcing, subcontracting, comparative analysis of Russia, and Sweden, wood technology, wooden house manufacturers, woodworking companies
Keyword [sv]
URN: urn:nbn:se:ltu:diva-55997ISRN: LTU-PB-EX--09/055--SELocal ID: ccace763-f3b2-4633-9d58-d304581ec216OAI: diva2:1029383
Subject / course
Student thesis, at least 30 credits
Educational program
Wood Engineering, master's level
Validerat; 20101217 (root)Available from: 2016-10-04 Created: 2016-10-04Bibliographically approved

Open Access in DiVA

fulltext(815 kB)0 downloads
File information
File name FULLTEXT01.pdfFile size 815 kBChecksum SHA-512
Type fulltextMimetype application/pdf

Search outside of DiVA

GoogleGoogle Scholar
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

ReferencesLink to record
Permanent link

Direct link