Advantages and disadvantages of outsourcing: analysis of outsourcing practices of Kazakhstan banks

In contemporary life, where competition among businesses intensifies rapidly, one of the instruments that will give possibility to open access to nearly every resource that offered in market is outsourcing. Drawing from Resource-Based View, Core Competency Theory, and Transaction Cost Approach, this study analyzes outsourcing practices of Kazakhstan banks. Sample of this research consists of three banks operating in Kazakhstan: HSBC Bank Kazakhstan, BTA Bank and Halyk Bank. Results of face-to-face interview with managers of these banks reveal that, advantages and disadvantages of outsourcing vary according to its type and size. In spite of the fact that outsourcing became very popular topic among scientific works all over the world, there is no research done on outsourcing activities in Kazakhstan particularly, and especially in banking industry of the republic.