The rationality of virtual realization of organizational functions

Abstract

In this paper the phenomena of passing some functions to external suppliers is called "virtual realization of function". This form is often practiced by companies as they looked for cost reduction and getting strategic advantages. Usually the decision about virtual realization of functions is taken by solving a "make or buy" problem, which stresses on economic criteria only. It follows from the research undertaken in companies that more holistic approach to decision making about virtual realization of function should be implemented. In this paper a multicriterion method for solving this problem is presented.