Cost savings is a must in these times, and an effective tool is to outsource various adminstraionen and production to low cost countries, countries with well-educated workforce and modern infrastructure.
India still ranks as the largest offshoring country globally, but Brazil, Vietnam and some Eastern European countries is growing stronger in the global arena.
Lots of analysis exists on the effects of and around outsourcing, pointing to savings of between 30 - 50 percent of the costs depending on the type of service and in which country it is produced.
Besides outsourcing generates financial savings, there are also other benefits such as increased access to specific skills, greater flexibility for staff and allow for greater focus on core business.
However, many companies have experienced quality concerns with its outsourcing, which show the business process sometimes must mature over time.
Last week the airline company SAS Group announced that they has signed an agreement with the international consulting firm Accenture to place their accounting and reporting in India.
The services are delivered to SAS Group in 14 Western European countries, focusing on Sweden, Norway, Denmark and Britain. With a streamlined and simplified business model achieved annual savings of 60 million swedish Sek. One step to enhance future profitability.
Cecilia Helland