Outsourcing: Advantages and disadvantages - Geneva ...

Advantages and disadvantages · Slower time for products to reach the market · Lack of business or knowledge domain · Cultural or language barriers · Time zone ... PODCASTS PODCASTS souslaloupe DETAILS Notrerevuedepressedelasemainepassée:du4-8avril2022 Notrerevuedepressedelasemainepassée:du4-8avril2022. >>lasuite... DEJAPARU DETAILS Suisse:Lescantonsromandsvontembaucher DesemploisvontêtrecréesdanscertainscantonsdeSuisseen2012,àcommencerparleca >>lasuite... DETAILS USA:6.000ouvrierssupplémentairesdeGMontacceptéundépartvolontaire LeconstructeurautomobileaméricainGeneralMotors(GM)aindiquélundique6.000ouvrier >>lasuite... DETAILS Suisse:Travail.Suissedénoncelesmodificationssurl’autorisationd’établissement L'organisationsyndicaleprendpositioncontrelesmodificationsproposéesparl'UDC,etr >>lasuite...   Outsourcing:Advantagesanddisadvantages 21octobre2021|byGuilhermeSantosSaraiva Outsourcing:amarketwithadvantages,butonethatrequiresattention!   Inmyfirstarticle,wetalkedaboutthe“backoffice”anditsimportancetocompanies.Ialsomentioned“outsourcing”. Ialsostatedthatyoucannottalkaboutthebackofficewithoutrelatingittooutsourcing,andviceversa. Thisarticle,therefore,looksatoutsourcinginmoredetail;types,advantagesanddisadvantages,andthelatestnumbersofthishigh-valuemarket. Definitionofoutsourcing Outsourcingisthebusinesspracticeofhiringaseparatecompany(thirdparty)toperformadministrativeservicesormanufactureproducts. Thispracticeisnothingmorethanoutsourcingtheexecutionofadministrativeservices,projectdevelopment,orproductcreation. AccordingtoWikipedia,thetermoutsourcingwasfirstrecordedin1981,ablendof“outsideresourcing.”OutsourcingwasfirstnotedasabusinessstrategybyKodak(whooutsourcedtheirprintingservicestoanoutsidecompany)in1989.Itbecameacommoneconomicpracticeamongcompaniesinthe1990s. Outsourcingisgenerallylinkedtoeconomicissuessuchasloweringacompany’soperatingcosts.Criticismofthepractice,however,generallyfocusesonthenegativeeconomicimpactwhenjobsareoutsourcedoffshore. Defendersclaimthatthepracticegeneratesincentivesforthecreationofnewbusinessesandallocatesresourceswheretheyaremosteffective.Assuch,outsourcingendsuphelpingtomaintainandimprovefree-marketeconomiesacrossallpartsoftheworld. Understandingoutsourcing Asmentioned,outsourcingcansignificantlyreduceacompany’soperatingcosts. Why?Simplyput,incountriesthataretraditionallysuppliersofoutsourcing,thecostsoflabor,taxes,rents,andotherchargesarelower.Thus,foracompanyinEuropeforexample,thesameadministrationormanufacturingprojectscanbedoneinanothercountrymoreefficientlyandwithlowerexpenses. Costreductionsarepossibletoobecausethecompanyoutsourcingprojectswillnothavetoinvestinequipmentandtechnologiesthatmayhaveonlylimitedorone-productuse. Andalongwithcostsavings,companiescanuseoutsourcingasastrategytoimprovetheirfocusonthecoreoftheirbusiness.Peripheralactivitiessuchasmanufacturingoradministrationcanbebeingcarriedoutefficientlybyaspecializedcompany.Allowingacompanytofocusonitscorestrengthscanincreaseproductresponsetime,whichhelpsoverallitscompetitiveness. TypesofOutsourcing Themostlogicalandobjectivewaytoclassifyoutsourcingisbygeographiclocation.Accordingtothiscriterion,thefollowingtypesexist: LocalOutsourcing:acompanyinthesamecountry. NearshoreOutsourcing:thecompanyisinaneighboringcountryoronthesamecontinent. OffshoreOutsourcing:thecontractingcompanyusesacompanyonanothercontinent. Whenchoosingthetypeofoutsourcing,someofthefactorsthatneedtobeconsideredandresearchedinclude: Costefficiency Culturalcloseness Creativity Easeofaccess Advantagesanddisadvantages Advantagesofoutsourcinginclude: Lowercosts Increasedefficiency(orproductivity) Variable-capacity Increasedfocusonstrategy/corecompetencies Accesstotalentorresources Increasedflexibilitytoachievechangesinbusinessandcommercialconditions. Acceleratedtimetomarket Lowerongoinginvestmentwithintheinternalinfrastructure Accesstoinnovation,intellectualproperty,andleadershipideas Possiblecashinflowresultingfromthetransferofassetstothenewprovider Therearedisadvantages,however,suchas: Slowertimeforproductstoreachthemarket Lackofbusinessorknowledgedomain Culturalorlanguagebarriers Timezonedifferences Lackofoversightandcontrol Notethatthereareseveraltypesofoutsourcingcontracts.Eachhasspecificcharacteristicsthatareadaptedtocertaintypesofactivities.Thecompanycontractingtheseservicesmusttakecarefulnoteofthesedetailsbeforeenteringintothecontract. Aglobalmarket TheBrazilianwebsiteStatistahasbeenpublishingstatisticsontheoutsourcingmarketsince2000.AccordingtodatapublishedinFebruarythisyear,in2019theglobaloutsourcingmarketwasworthsomeUSD$92.5billion. Theannualrevenueoftheglobaloutsourcedservicesindustry,however,hasbeenunstableinrecentyears.In2016forexample,revenuesdroppedtoUSD76.9billion,thelowestvalueseeninadecade. ThelargestoutsourcerscomefromtheAmericas,followedbyEurope,theMiddleEast,andAfrica.ThesmallestportionofthisglobalrevenuecamefromtheAsia-Pacificregion,whichistraditionallyaproviderofoutsourcingservices. Importantlythough,forboththeoutsourcingcompanyandthehostcountry,therearecostopportunitiesandadvantagesfordevelopingadiverserangeofsuppliersaroundtheworld. Furtherreading: TheBackOffice:WhatitdoesandwhereitisgoingbyGuilhermeSantossaraiva Image: Dreamstime GuilhermeSantosSaraivaBackOfficeSpecialistwithaBScinlaw,Ihaveover10yearsofexperienceinAdministrativeManagement,3oftheminaFinancialMarketcompanybasedinGeneva.WhatIlovemostaboutmyjobisresearching,analyzingandmakingimportantandcomplexdataaccessibletopeople.I'morganized,haveagoodsenseofprioritizingtasks,andappreciatehonesty,loyalty,responsibilityandharmony.I'malsoaloverofmusic,books,oldcars,nature(animalsandplants)andgoodhumortoo. LaisseruncommentaireAnnulerlaréponseVotreadressee-mailneserapaspubliée.Leschampsobligatoiressontindiquésavec*Commentaire*Nom* E-mail* Siteweb Δ CesiteutiliseAkismetpourréduirelesindésirables.Ensavoirplussurcommentlesdonnéesdevoscommentairessontutilisées. Restezinformés,recevezchaquesemainenosderniersarticlesparemail!