AUTEX Research Journal, Vol. 4, No4, December 2004 ' AUTEX http://www.autexrj.org/No4-2004/0114.pdf 228 OUTSOURCING AS A MODERN MANAGEMENT STRATEGY. PROSPECTS FOR ITS DEVELOPMENT IN THE PROTECIVE CLOTHING MARKET Małgorzata Koszewska Technical University of Lodz, Institute of World Economy and Textile Marketing ul. Żeromskiego 116 Lodz Poland; e-mail: mcislo@p.lodz.pl Abstract Outsourcing is a very successful and increasingly popular enterprise management strategy. The aim of this article is to analyse prospects for outsourcing development in the protecive clothing market. The author attempts to present outsourcing as a very successful competitive tool and a way of strengthening a given firms position in the protective clothing market, especially in the face of growing competitive pressures and progressing globalisation. Keywords Outsourcing, protective clothing market, management strategy Outsourcing as an enterprise management strategy in the face of globalisation and growing competition In the literal sense, outsourcing denotes utilisation of external resources. It occurs when the execution of tasks, functions and processes hitherto fulfilled in-house is commissioned to an external provider specialising in a given area on the basis of long-term co-operation. Quelin and Duhamel define outsourcing as the operation of shifting a transaction previously governed internally to an external supplier through a long-term contract, and involving the transfer of staff to the vendor for the firm. According to their definition, five elements characterise strategic outsourcing [10]: ! A close link between outsourcing processes and the key success factors of a firm in an industry. ! The transfer of ownership of a business function previously internalised, often including a transfer of personnel and physical assets to the service provider. ! A global contract, longer and denser than a classical subcontracting agreement. ! A long-term commitment between the client and the service provider. ! A contractual definition of service levels and of each partners obligations. Outsourcing helps an enterprise concentrate on its strategic tasks and goals  the core activity. As a result of minimising expenses on activities that are necessary but unrelated to the firms basic functions and goals, the prime cost can be reduced [4, p.373]. Historical Background Outsourcing dates back to the 1970s. Initially it only involved IT-related issues, but gradually more and more enterprises realised that they could not be experts in more than one or two fields. This conclusion made them get rid of various areas of activity and entrust them to specialists. According to a survey by Fortune magazine, over 90% of business organisations today take advantage of external service providers, and in the European market alone the 2001 estimate of such services was US$27 billion , which is growing from year to year. Originally, outsourcing was only used by large corporations, but nowadays it is becoming more and more popular among small-sized enterprises [13]. The broader use of outsourcing in the industrial market results from the build-up of competitive