Outsourcing Is A Reality

Thirty years ago, it hardly even crossed our minds to outsource any of the company’s departments.

Everything helped for this to be the case since salary costs were relatively low, the situation of the companies stable and in continuous growth.

The necessary technology did not exist, so the activity had to be face-to-face, the action was local, it was hardly exported, and the business culture was very conservative.

Nowadays, everything has changed, and outsourcing is a reality and it is constantly growing.

There are surprising cases such as Nike or Dell, which have 100% outsourced their manufacturing process!!!

What, then, has caused this change to occur?

Fundamentally, two factors have contributed the most:

On the one hand, there is technological development, which means we have control without needing to “be present”.

And on the other, the crisis and competitiveness which has made companies go out looking for business beyond their local area and both costs and performance are looked at with a magnifying glass.

As a consequence of this, companies have sought the best options to gain customers and be competitive, also seeking to optimize their income statement, thus creating a cultural climate, almost of necessity, that has made this transformation possible.

And Why Is Outsourcing Growing So Much?

The answer is simple, it is a system that offers better solutions to particular challenges since outsourcing has several advantages:

• It allows the company to have highly qualified people and immediate effectiveness at a cost that can be assumed.
• Reduces costs
• Provides quality to the company
• The return is much faster
• There is no investment in training
• Allows the company to tackle more tasks and opportunities
• Increases diversification, thereby increasing options and minimizing dependency
• Reduces wage dependency

Some Data:

The annual turnover is €1,950 million with sustained growth and has increased since 2008 by around 5-9% per year.

The reduction of company costs is between 5 and 15%

70% of the companies that resort to outsourcing say that they plan to maintain it or increase it in later periods.

33.8% of the companies have outsourced production areas, 24.7% human resources or 25.26% general services.

There are also some departments where the use of outsourcing has a direct benefit for the company and is a trend in the market.

I am referring to the application management department, web environment, and digital marketing, which allows opening up to a vast number of potential consumers, or the commercial department, where an outsourcing model, whether full or mixed, allows many more customers to be reached without having to the cost in the structure suffers.

Also Read: What Does Software Development Have To Do With Supplier Management?