The number of businesses offshoring their procurement services these days is increasing steadily. This article will outline why this is and what benefits these businesses are seeing through adopting this practice.
So, what do we mean by procurement services and how are these being offshored?
Procurement services include sourcing goods and services and the management of suppliers. The most common offshored procurement services are indirect, meaning materials and services designed for consumption by the companies themselves rather than for their customers or clients. Through operating this way, companies see a reduction in costs and have the advantage of local experts added to their procurement department.
What are the main benefits of offshoring procurement services?
Offshoring procurement services is comparable to offshoring accounting or IT services, as are the benefits to your business. Unlike offshoring purely with the goal of cost-reduction, generally achieved through hiring a cheaper offshored workforce, offshoring procurement services gives your business the added benefit of adding local expertise to your company. Through this kind of offshoring process, you will add highly skilled procurement experts to your business who will have extensive local knowledge and access to relevant networks. In short, this is a way of improving your existing business functions rather than just purely cutting costs.
What kind of company will benefit the most from offshoring their procurement services?
Typically offshoring was the domain of big businesses with big budgets, so you may not realise that smaller businesses are also profiting from offshoring. The benefits offshoring affords, that is, offshoring specific functions thereby allowing focus to be redirected onto other important tasks and save time and money in the process, can be applied to any size business model.
Successful businesses are always looking for new and exciting opportunities for growth, and offshoring procurement services provides one such opportunity.
How long does it take to implement offshoring strategies?
The time it takes to implement offshoring into your business will depend on the size of your company and your offshoring scope and requirements. It is best to introduce offshoring gradually over a period of time, testing effectiveness as you go. While there is no blanket timeframe, if you use a reputable offshoring provider like Origo BPO, you can be sure the implementation process for your business will be smooth, efficient and ultimately rewarding.