Major Concerns of Europeans in Associating with Outsourcing Companies: Facts & Solutions

KochiMarch 5th, 2016

HansTrendsEuropeChallengesTrust

Cologne, Germany

Brussels, Belgium

HANS

GÄRTNER

Bank, FrankfurtProject management, HR Development

HANS

GÄRTNER

Shipbuilding, BremenHuman Resource

Actually, the outsourcing future looks bright…

Potential is huge: Still most services inhouse

IT services most readily outsourced and logical starting point

Top candidates:Facility-, Payroll services, Procurement

Business Process Outsourcing is second step

Least candidates:Sales, Finance, HR,

Offshore outsourcing from Europe:

The overall trend picture

There isgood newsand bad news

The Good News:

Chances in second generation outsourcing: more intelligent services

The Bad News:

• Trend to insource• Trend to onshore outsourcing• Clients in fast changing industries want

to keep their competitive advantage as first movers

Onshore,Nearshore, Offshore

The decision is always a balance between the objectives an organization tries to achieve and the risks perceived.

The European Union

Discussion in Europe• Data security, privacy• Job security, Globalization• Trend to national tendencies –

return to national state interests (Brexit, EU Problems refugees, EU-Balkan states)

„Kinder statt Inder“

(Children instead of Indians)

Typical European ClientFamily owned international company , Medical Devices

Typical European ClientFamily owned international company , Audio Devices

Believes of a “SME” European Client

No riskData securityOwn staff deserves loyaltyQuality of service and relationship

• Number one, two, or three in the global market, or number one on the company's continent, determined by market share

• Revenue below 4 Billion Euros• Low level of public awareness.

SMEs are well organized

http://www.ihk.de/#ihk-finder

Brax

Falke

Miele

Pflei-derer

Topics that create concerns:

PunctualityLanguageQualityCommunication preference

Punctuality

German punctuality

When is 12.00 PM

Belgium: 12.15 PMFrance: 12.30 PMSpain: 01.00 PM

Perception of Indian punctuality:„You newer know“

LanguageIrish, British, Scottish

German Accent, French Accent, Spanish Accent, Italian Accent

Indian Accent

„We don‘t understand their English“

Quality

International Standardization organization

European Foundation for

Quality Management

Quality

At start of a relationship:

Focus onprocess quality

Content Quality Process Quality

Communication Preferences

• Participation in meetings

• Hierarchy• Yes and No

Building a trusting relationship

You cannot learn everything about every culture you are doing business with:

Measures required also on corporate level

Client/Retaining

Organization

Outsourcing Service

Provider

• Constant review of outsourcing strategy

• New people manage the outsourcing relationship

• Communication: tools and processes

• Attitude of staff: Everybody is a relationship manager

• Manage multiple stakeholders• More qualified staff and dealing

with staff changes• Communication: tools and

processes

Expectations change over time and go beyond the individual contract

Find/develop a

SPOC

Single Point of Contact

Develop your “Business Model” for

your future outsourcing offer

CustomerRelationships

CustomerSegments

RevenueStreamsDistribution

ChannelsKey

Resources

CostStructure

KeyPartners

KeyActivities

ValueProposition

Key

Appendix

Establishing and maintaining a healthy relationship between client and provider parties

Retaining organization

Serviceprovider

Establishing and maintaining a healthy relationship between client and provider parties