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Strategic Outsourcing: what are the benefits and the risks?

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Companies that choose to rely on external service providers for the management of entire corporate units are moved primarily by the need to improve the process efficiency and optimize the time, relying on the expertise of professional third parties, specialized in that particular sector. Gruppo La Meridiana is at the forefront to offer to the companies professionists in Outsourcing to be included in the staff or to manage a part of the company not related to the core business.

Companies that choose to outsource a part of the production process can achieve savings estimated at around 15% on the national average. This is a widespread practice for the small and the large reality. PMI are turning to third companies to speed up and dispose of the organization timing for certain functions and to reduce the costs, while large companies choose outsourcing primarily to improve efficiency.

Analyzing the advantages that come from outsourcing of production processes, the first that is immediately apparent is the possibility for the company to focus on core business. Substantially reducing the number of activities that need to be managed from the inside, the company can rearrange the resources to invest them in primary activities, improving the competitiveness on the market, giving the management of the secondary aspects to an outside company, specializing in those activities.

Deserves special attention the evolution of the costs, that with the outsourcing, change from fixed to variable. In fact, entrusting a business unit to an outside company, the costs for equipment and staff, that in the financial statements are included in depreciation, are no longer the company’s competence, but of the company to which was entrusted the outsourcing.

It is not to be underestimated even the increase of the specific flexibility, given by the external operator’s ability to cope with a sudden change of production flows. Having developed a specific capacity of the sector, in fact, the external operator can easily cope with an increase in volume as well as to a decrease, always maintaining the maximum level of efficiency.

If these are the advantages, no doubt numerous and important for companies that choose to entrust to external companies part or entire business units, in contrast can not miss the risks, which are inevitable, as in any production process. The risks arise mainly when the company don’t choosed with caution the operator to trust for outsourcing, relying only on a estimate downward that, in most cases, hidden problems that may affect the excellent possibilities operation. Gruppo La Meridiana offers the best outsourcing solutions, providing highly trained and top-level equipment staff available to offer the highest quality standards to the client.

Among the major risks of outsourcing is the lack of motivation of personnel caused by demobilization, in case the company being awarded the business unit does not offer the necessary guarantees and safety for workers who are transferred there. This move also implies a decrease in the specific know-how in the company, with the migration of previously trained professionals inside to an external reality no longer strictly linked to company-specific needs.

Another risk is that of a decrease of the control on the final service that is offered to the customer, in the case where the sectors that are outsourced cater to the outside, which also implies a loss of direct contact. This is an operation which should be administered with extreme caution to preserve company-specific needs and also keep them in case of outsourcing.

Gruppo La Meridiana is a leader in this industry, because offers its customers the highest standards of reliability and competence, realizing specific training programs for personnel employed in a particular sector and creating customized management plans on the individual needs of each company.

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