Outsourcing EU Information

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Offshoring, Outsourcing & Near-shore Outsourcing for EU Companies and Businesses

Outsourcing is a powerful way for companies to reduce costs, improve quality of service, time-to-market, extend the scope of customer services and be better capable to focus on the core competencies of the organisation - are paramount to keeping a competative edge in global as well as internal markets.


For European and especially German companies, outsourcing and near/ off-shoring can also create a new source of flexibility that helps them meet fluctuations in demand, thus bypassing the hindering thicket of labor laws back home. 


Europe's rapidly aging populations and low birth rate means that offshore labor will be increasingly needed in coming years to make up for a fast dwindling workforce.


Outsourcing used to be a decision made by financially troubled businesses that wanted to cut costs or offload unprofitable, cost-ineffective or money-sapping assets.


Over the last several years, initially led by American and then followed by British companies, a new global-sourcing trend has set in. Nowadays, virtually every industry views outsourcing as a smart business practice, and one that's simply unavoidable.

Outsourcing & Offshoring have now become mainstream. Outsourcing is a business practice that is now on the boardroom agenda of most European blue chip companies and public sector organisations..

"Outsourcing Benefiting American And European Economies Claims London School Of Economics [L.S.E.]"

2016
Popular European Outsourcing Destinations

Outsourcing to Eastern Europe?
Is Bulgaria a Good Nearshore Destination?
Watch this video.

Outsourcing helps drive economic growth at a time many EU economies stumble. 


nearshoring offshoring outsourced workforce
Cut Costs. Hire Outsourced Workforce who work from your BPO Center or from their homes or even Internet Cafe.

Outsourcing & Offshoring Major Challanges


There are, however, big challenges and road blocks to outsourcing many organizations are experiencing:


  • The uncertainty and fear of turning over operations to an outside provider
  • The mega-deals are usually very vendor-complex, often requiring a collaborative multi-sourcing, multi-shoring solution, where either one or both of the parties can end up wanting out of the engagement.
  • Obtaining a deep cross-cultural understanding
  • Maintaining close communication, even when time-difference makes this bothersome
  • Frequent travel for you and your employees in order to optimize communication with your outsourcing partners on all levels.
  • The sales process is still very long and involves high-level decision makers from across the client's business
  • Managing the impact of outsourcing/ offshoring on your current employees
  • Lack of Time for all this change-proccess
  • Lack of Expertise - new territory , failure- anexieties
  • Budget restraints - and what's the real cost or gain of outsourcing?
  • Access to Service Providers - limited or too confusing

Why Do the Leading Companies 
Outsource & Offshore?

Companies are offshoring and outsourcing their software development, IT and various business processes, HR, back-office, marketing, call centers, sales , accounting, design, development, testing, DB architechture and a variety of complex needs.

While looking into multi-shoring outsourcing (global-sourcing) approach in order to enable your company to save money, it is important to realize that a long-term strategy and vision are neccessary, as it may not be that you see great savings immediately. 
However, there are a host of other important benefits:
  1. Dramatically Reduce time to market of your products
  2. Improve company focus - Better focus (your own team) upon your core Vs. context
  3. Increasing your R&D capacity - get more done
  4. Accessing a better and much increased talent pool - Access skilled resources by tapping into global talent pools with world-class capabilities, especially if resources not available internally or locally
  5. Higher flexibility in expanding/reducing your personnel. Partners can easily resize according to the cyclical market needs you have
  6. Better ability to react fast to new situations
  7. Improved controlling and reporting of output - Improving organizational performance
  8. Gaining higher predictability (cost/speed/quality)
  9. Reducing R&D spend without sacrificing quality and productivity
  10. Creating and sustaining a competitive advantage
  11. Harness leading technologies
  12. Expand services
  13. Enrich customer relations
  14. Enhance supplier relations
  15. Reduce and control operating costs - You may even be able to lower your costs & grow your margins
  16. Focusing resources on core competencies while obtaining resources to improve important, non-core business processes - make capital funds available, cash infusion, asset transfer
  17. Increase efficiency
  18. Share risk models - get the best return on your IT investments by sharing risks with outsourcing vendor

Successful Outsourcing Factors Best Practices  

The Most Important Factors For Successful Outsourcing
  • Understanding your firm's goals and objectives - long term vision and clear strategic plan is a must
  • Selecting the right vendor - careful assesment needed
  • Deciding on the right contracted services business model for you - Time & Material, Fix Bids, Risk Models
  • Strategic integration of your offshoring/ global-sourcing needs into your business model
  • A properly structured contract
  • The ability to realign offshoring/ outsourcing goals as your business needs change and flex - fast & effectively

Ongoing management of relationships - excellent clear Communication is vital to invest and maintain:

  • Senior executive support and involvement is vital - reward those who help you with the outsourcing, involve them with the outsourcing / offshore partner team on all levels and plan for frequent travel
  • Cultural compatibility and cross-culture understanding - educate yourself and your team, all your workers onshore and offshore
  • Make the outsourcing offshore development- center employees feel they are part of your team. Visit them regularily.
  • Seamless integration of onshore and offshore teams - treat them the same
  • Careful attention to personnel issues - engage in open & honest communication with your outsourcing-affected employees
  • Proper mix of retained "in house" staff and outsourced operations is important to ballance
  • Track the performance of offshore/ nearshore and your onshore teams with the same metrics
  • Have clear communication plans and processes

European Outsourcing Videos

Posted October 5, 2016
outsourcing success - passing over bridge of hurdles

Funny Video:
BPO Call Center Outsourcing

See What Could Go Wrong When You Use Outsourced Call Center Agents in India...
Funny Outsourcing Video about the BPO Industry . Business Process Outsourcing is the most common form of outsourcing large companies employ to cut costs.  

freelance outsourced employees

Business of offshoring and outsourcing

John Gray, assistant professor of operations at Ohio State University's Fisher College of Business, gives a business perspective on offshoring and outsourcing; its effect on the economy; benefits and risks and the trends that indicate offshoring is slowing down due to increased costs in today's economic climate.

costs of outsourcing reduce company costs

Outsourcing and Offshoring Sectors: Challenges and Opportunities

In order to grasp better understanding of the outsourcing and offshoring industry, it is vital to first know the different terms and definitions. Jack W. Plunkett, CEO of Plunkett Research, Ltd.™ also explains and discusses the advantages and disadvantages pertaining to the outsourcing and offshoring industry. It seems that language and communication barriers and time zone differences could potentially lead companies to choose nearshoring or reshoring instead. However, it should be noted that one of the main reasons contributing to the rapid growth of offshoring is because of the lower labor, production and distribution costs involved.

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OutsourcingMonitor.EU's Core Objectives Are:

Goals for Providing Outsourcing Advice, Sourcing Consulting Services and other Outsource Information
  • Providing a much needed thought-leadership information platform for the European outsourcing industry. There's need for focusing on best practice and the provision of information for all EU companies involved in the outsourcing decision..

  • Facilitating the introductions of buyers and sellers of IT services.

  • Become the complete resource and 1st stop for any stakeholder interested in finding out about any aspect of the European outsourcing market.

  • Providing a fair and unbiased representation opportunity to all and any organisations involved in outsourcing market-place (buyers/ users, suppliers, third party services & support) 

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