Outsourcing is becoming increasingly popular as companies look to cut costs and find the best skilled labour - globally or nationally. Global outsourcing is defined as the outsourcing of a process to another country. The definition of outsourcing also includes outsourcing to a third party within one's own country. Cost savings are the main reason for outsourcing, as it allows companies to reduce operating costs and increase efficiency. In addition, global outsourcing provides access to a larger talent pool and specialised expertise.
Which companies benefit from outsourcing?
Almost every company can benefit from outsourcing - from start-ups and small and medium-sized enterprises to large corporations. Outsourcing is not a strategy that is only suitable for certain industries or company sizes; there are many possible applications.
Which areas are suitable for outsourcing?
The following areas are particularly frequently outsourced: the IT sector (IT support and software development), customer service (one of the most popular outsourced areas), the healthcare sector (more for administrative and customer support purposes) and production (handling production and quality assurance). Globally outsourced tasks typically include information technology (IT), human resources (HR), customer care and production.
What are the disadvantages of outsourcing?
Communication problems: When working together across national borders, communication difficulties can arise due to cultural differences and different time zones.
Problems with quality control: Outsourcing can lead to quality problems because there is no direct supervision and control. There is a risk that the quality of the tasks performed will not meet the company's own standards.
Security risks: Outsourcing can entail certain security risks because external outsourcers could use systems or processes that do not have the necessary security.
Which are the most popular outsourcing countries and why?
The most popular outsourcing countries include Slovakia, the Philippines, India, Poland and Brazil. The reasons vary depending on the country:
The Slovakia is popular because it is very close to Europe and Europe is a major outsourcing centre. It also has a skilled labour force, a similar culture and low labour costs. The Philippines are among the most favourable outsourcing locations worldwide. The labour market is very flexible - many employees are qualified for international companies and speak English. India has an extremely high number of IT specialists, low labour costs and English-speaking employees - which is why it is in high demand elsewhere despite the shortage of IT specialists. Poland is ideal for outsourcing, as it borders on Europe, has a similar culture and also scores with low labour costs. Brazil has very low labour costs, is close to the USA - the world's most outsourcing-driven country - and is English-speaking.
Outsourcing with Global Business Recruiting
Global Business Recruiting supports companies with outsourcing and investments in Slovakia. As a partner of the Slovak Agency for Investment and Trade Development (SARIO) and a member of the Investment Support Association (ISA), we guide our clients through complex and customised outsourcing processes. Our services include outsourcing with an understanding of cultural differences, cost savings, process support from start to finish and more than 20 years of expertise in international recruitment.
You can read more about the placement of skilled workers from abroad in our article Recruitment of foreign specialists.
Frequently asked questions about outsourcing
Global outsourcing refers to the outsourcing of business processes or tasks to another country. The aim is to reduce costs, utilise specialised expertise and gain access to a larger talent pool. However, outsourcing can also take place within a country to a third party.
The main benefits are cost savings through lower labour costs in the outsourcing countries, increased operational efficiency and access to a larger pool of qualified and specialised professionals - particularly relevant in times of skills shortages.
The most common risks include communication problems due to cultural differences and time zones, difficulties in quality control without direct supervision and security risks if external partners do not have the necessary security standards.
IT services, customer support, HR and administrative tasks as well as production and quality assurance processes are outsourced particularly frequently. In principle, however, companies of almost any industry and size can benefit from outsourcing.
Slovakia scores with its geographical proximity to Western Europe, qualified labour force, cultural similarity to European markets and comparatively low labour costs. Global Business Recruiting is a partner of the Slovakian investment promotion agency SARIO and supports companies entering the Slovakian market.
Deutsch 
English (UK) 
Čeština 
Slovenčina 
Polski