With the aim of focusing only on what they are experts, companies have opted to hire the services of third parties and outsourcing organizations to solve the day to day operation of the company.
by María Cecilia Hernández Ocampo
According to the leading services consultancy Grupo Adecco, through its Outsourcing unit, outsourcing consists of delegating the management of certain activities to third parties, activities that do not mean the business purpose of the company.
This process, according to Adecco, improves business performance, transforms fixed costs into variables and allows access to specialized technologies offering competitive development compared to other companies in the sector.
In fact, in the latest study carried out by this company called IV Adecco Outsourcing Survey on Outsourcing, eight out of ten companies said they felt satisfied working under this production model and in the last year the demand for outsourced services grew by 14% globally.
There are companies of all kinds and at all levels of the labor chain: from manufacturing to technology. On the subject OF BUILDING MANAGEMENT, he spoke with Sebastián Noguez, IT specialist of the company Ideati, an organization based in Panama that provides services in information technology in two main lines: Outsourcing of computer development and Strategic Consulting in Technology.
Building Management: How do you see the issue of outsourcing in Latin America?
Sebastian Noguez: Outsourcing initially had a great growth in India and China to provide services to English-speaking countries, with the main advantage of being able to have very low costs.
However, lately many Latin American countries, such as Uruguay, Argentina, Brazil, Colombia and Mexico are emerging as new outsourcing capitals, which has generated the use of a new term called nearshoring, which means the outsourcing of services, no longer to distant countries, but to countries closer to the client to whom the service is being provided. This closeness refers not only to geographical proximity, but also to a cultural (Western) closeness.
On this side of the world we have great advantages: lower labor costs compared to European countries and the United States, tax benefits, highly qualified personnel, technological and communications infrastructure. These and other aspects are contributing favorably to this phenomenon.
There are several studies that talk about the growth of outsourcing in Latin America and the threat that this region represents for the powers in the subject that are India and China.
GDE: What are the advantages for companies of having this type of service?
SN: One of the main advantages of outsourcing is the reduction of costs, companies do not have the need to invest capital in human resources and equipment to form or maintain a department for example computer or cleaning; In addition, it is not necessary to invest constant effort in keeping this department updated in what has to do with the knowledge and training of its staff, or in the technological or operational infrastructure.
Another of the main advantages that should be highlighted is the access to highly specialized resources in each of the stages of a project.
The following advantages can be listed:
- Cost reduction
- Reduced investment in IT infrastructure
- Less administrative burden on the company, salaries and training costs.
- Access to specialized resources.
- Access to cutting-edge technological platforms.
- Greater focus on the business of the organization and not on the administrative aspects.
- Minimization of costs and times for the implementation of projects.
GDE: What could be the disadvantages or points to improve of this business model?
SN: One of the main risks in terms of outsourcing services is present when the company does not have the experience or trained personnel to monitor and follow up on the projects it outsources.
The constitution of a counterpart team trained in outsourcing management is a determining factor in the success of the outsourcing of any project.
An alternative commonly used to counteract this drawback is the outsourcing of the counterpart team; that is, a company or team of consultants is hired to execute the management of the project that has been outsourced, reporting directly to the management of our company and demanding that the contracted company comply with the objectives and deliverables that have been established in the work plan.
GDE: With the growing offer of outsourced service companies, how can a company that is dedicated to the provision of outsourced services stand out from others?
SN: In our case, for example, we are aware of the large number of companies that are dedicated to providing outsourced technology services. Two important strategies are, on the one hand, specialization in a specific area of business; with this approach the company will have a small market niche but it will be able to differentiate competitively from the rest of the organizations that try to have a higher level of coverage.
The other strategy that can be of great help is the realization of strategic alliances with other companies in the same business segment; in this way the strengths of each of the parties can bring advantages over the competition.
GDE: Because technology is one of the most delicate and sensitive assets of a company, what care should be taken when providing this service in an outsourced manner? What does a company specialized in technology guarantee when providing this service?
SN: Compliance with the standards and good practices associated with the specific technology services provided must be the baseline to be able to offer a quality service, which allows to gain the trust of customers who entrust us with sensitive and confidential information of their organization.
It is important that companies that work with an asset as delicate as information, design and make known, both to their internal and external audiences, rules and rules of the game; for example, in our case, our work team subscribes to an Ideati Code of Ethics and Conduct that reflects our commitment to act ethically, in accordance with the principles and standards of conduct defined therein, in the development of our relationships with all the stakeholders affected by our activity: employees, customers, shareholders, associates, suppliers and the civil societies in which we are present.
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