A study of outsourcing by Polish companies, performed by SEENDICO for Outsourcing Magazine and CSW boco sp. z o.o, was based on two hundred interviews of managers representing various manufacturing and service companies. The study clearly showed that, in Poland, outsourcing is restricted to simple business processes. More complicated processes are rarely outsourced. Nevertheless, outsourcing expenditure will increase in the years to come.
The ten main conclusions of our study are:
1. Outsourcing is quite common. About 93% of small and average-sized businesses outsource some kind of process work.
Polish companies outsource mainly the less complicated processes like training, transport and cleaning services, IT support, distribution, logistics, marketing, sales or research.
2. Cost reduction is the most important motive of outsourcing. However, there are also other important factors that foster outsourcing, such as concentration on core business activities and search for external skills and resources.
3. For almost 80% of companies, outsourcing brings cost reduction. However, actual savings do not exceed 10% for most companies.
4. Most companies are planning to increase their outsourcing expenditures in the next two years, although 45% declared that their expenses will remain unchanged.
5. The main benefit that accrues from outsourcing is the positive impact on Polish companies’ procedures. It enables companies to focus on core competencies, better effectiveness and business productivity.
6. Implementation costs are the main barrier to the development of outsourcing practices. Other obstacles are risk, legal regulations, and lack of service providers.
7. The Internet is the main source of knowledge about outsourcing; other sources are business partners, benchmarking, friends and professional magazines.
9. All decisions concerning outsourcing are made on the highest organisational levels of companies. In 95% of companies, such decisions are made by the CEOs or financial directors. Rarely do the managers of departments that are the potential subjects of outsourcing initiate the process.
10. Resort to outsourcing is still limited. Most of organisations perceive it from the perspective of operational importance, although the trend seems to be to view it as a measure of strategic importance.