Correlation Between Reasons And Effects Of Outsourcing: Evidence From Slovenian Sme’S

The aim of the paper is to presents reasons for outsourcing and links them with different finan-cial and non-financial effects of outsourcing. For the purpose of the paper, we use broad definition of outsourcing; as the fundamental decision of a company regarding the external supply of certain prod-ucts and/or services. However, only few studies can be found that examine the connection between the reasons that led to the decision to outsourcing and the measurement of the actual effects achieved. Therefore, we examine the correlation between reasons for outsourcing and its effects in small and medium sized companies. The paper presents results of empirical study among Slovenian SMEs which shows that there exist statistically significant connections between reasons and effects of outsourcing.