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5 global trends that drive the outsourcing business model

5 global trends that drive the outsourcing business model

As the global economy continues to evolve to take on economic challenges, so the outsourcing business model is driven to change. Human Resources outsourcing, along with other outsourcing solutions, are adapting in order to meet changing needs in innovative ways. Some of the top global influencers driving this change include:

1.   Labour costs are rising in China

OEMs (Original Equipment Manufacturers) who are producing their goods overseas in China because of the lower costs are feeling the pinch of rising wages in this region. While this doesn’t mean that companies will be moving out of China immediately, it does mean that long-term outsourcing solutions are being implemented to balance out these rising costs. One example of this may be to utilise cost-effective outsourcing in other parts of business operations, including Human Resources outsourcing and human capital management.

2.   Supply chain risks are higher

These risks include everything from political instability in the country that’s producing your product to natural disaster and the global financial crisis. With these elements running at unprecedented highs, companies are looking to completely restructure their supply chain to reduce the effects of these risks. This includes outsourcing supply chain management to experienced companies who know how to mitigate risks and streamline operations.

3.   The demand cycle is getting shorter

With the world becoming an increasingly smaller place, consumers are demanding immediate satisfaction when it comes to supplying the goods they’re looking for. Suppliers don’t feel that they know exactly what products to commit to and how many to produce, as the demand cycle can peak and disappear in an increasingly short amount of time. Outsourcing solutions such as supply chain management have become increasingly comprehensive as a result, offering end-to-end solutions that minimise response times.

4.   Regionalisation is prominent

Rising transportation costs and the risks associated with global production, is making producing in outlying regions a far less cost-effective and worthwhile outsourcing strategy. As a result, supply chain management outsourcing solutions are becoming regionalised, where products are developed in the region, for the region. 

5.   The global market is more challenging than expected

Due to the global financial crisis that is putting a pinch on everyone’s spending, the global market is simply not as easy to succeed in as companies previously believed. Massive, poorly planned outsourcing at low costs was implemented on a global scale – a tactic that hasn’t brought in the rewards that were initially forecasted. Outsourcing solutions now have to become more customised to clients’ exact needs and built on proven methodologies if clients are to get the results that they are looking for.

For dynamic Human Resources outsourcing solutions that are tailored to your company’s needs, contact us at Effectiveness Company today.

5 global trends that drive the outsourcing business model

Should you outsource? 5 considerations for harnessing the benefits of outsourcing

In a troubled global economy, many companies look towards downsizing and other cost-saving measures – but should they rather be looking at outsourcing solutions instead? Investing in new staff and technology may seem like an unusual path to take when we’re tightening our belts, but it’s a path worth considering. Here’s why:

  1. Reduced Costs. Although There Are Initial Investment Costs To Consider, Human Resources Outsourcing And Other Outsourcing Solutions Have Been Proven To Reduce Operational Costs By Significant Amounts, Especially When Undertaken By An Experienced Outsourcing Company. These Savings Can Be Expertly Forecast And Achieved Through The Utilization Of Proven Methodologies In Order To Reflect Directly On Your Bottom Line.
  2. Free Up Resources. Modern HR Departments Take On Massive Portfolios In Modern Companies, Commonly Resulting In Upper Management Becoming Bogged Down In Day-To-Day Operations. With A Tailored Outsourcing Solution, You Will Be Able To Free Up Your Managers And Executives From Routine HR Assignments To Focus On Core Business Functions So That You Can Operate More Efficiently – And More Profitably.
  3. Effective Risk Management. When You Take Care Of All Your Business’s Paperwork, You’re Taking On All The Responsibility As Well. If Your Departments Are Unable To Cope With Day-To-Day Operations Effectively, You Increase The Risks Of Human Error. By Outsourcing, You Take A Lot Of Pressure Off Yourself And Your Staff And Place It On An Outsourcing Partner That Has Considerable Expertise In Handle These Tasks Efficiently.
  4. Get The Staff You Need, Today. By Partnering With A Company That Specialises In Commonly Outsourced Tasks (HR, Supply Chain Management, Asset Management, Training And More), You Will Have Fully-Trained, Responsible And Knowledgeable Staff On Hand Whenever You Need Them. This Means That You Don’t Have To Discover, Recruit And Train New Staff On Your On Time And Money.
  5. Get Flexible. In Tough Economic Times, Companies Need To Be More Flexible Than Ever In Order To Take Advantage Of Profitable Opportunities. They Need Innovative Solutions – And They Need Them Quickly. With An Experienced Outsourcing Partner, You Will Be Able To Leverage Their Expertise And Technology To Act With The Highest Level Of Business Agility.

So, to answer the question: yes, you should invest in outsourcing – with the right partner. Contact us at Effectiveness Company today and see what the right outsourcing partner can do for your business!

5 global trends that drive the outsourcing business model

South Africa reaffirmed as a prime outsourcing choice

South Africa’s outsourcing industry received another boost in the right direction, receiving the European Outsourcing Association’s destination of the year award. This follows last year’s destination award from the UK National Outsourcing Association, showing that South Africans have a skill set that is in demand globally.

Although the country is facing a skills shortage – something that is not unusual for this stage of national growth and development – call centre outsourcing is an industry that is leading the way in skills development for South African citizens. The United Kingdom in particular is an especially enthusiastic participant in offshore outsourcing, with companies like Serco establishing a call centre in Cape Town to handle a substantial 430 million pound contract.


First and foremost, we have strong cultural links with the United Kingdom. This makes adapting to overseas protocol, client and customers more fluid – allowing call centre agents to deliver essential customer service in a comprehensive, reliable and professional manner.

Another factor driving this boost in reputation for high-quality call centre outsourcing is the highly competitive job market. Call centres outsourced by foreign companies are employing experienced, professional staff that are willing to fully adapt to and embrace cultural alignment training. This makes for highly effective, enthusiastic staff and considerable returns for their parent company.


At the Effectiveness Company, we are all about taking on the skills shortage head-on to deliver enthusiastic and knowledgeable staff for all your outsourcing needs – whether you’re looking to establish a call centre in South Africa or are looking for unique Human Resources and supply chain management solutions.


As a leader in the industry, our clients are able to leverage our expertise, people, training and software offerings in order to drive sustainable measurable results. Contact us today and find out ore about our outsourcing services.

5 global trends that drive the outsourcing business model

An in-depth look at how outsourcing helps performance improvement and SMME growth in South Africa

SMMEs face many challenges in the South African market that restrict performance improvement. Initiatives from a leading outsourcing company, however, provide significant relief for this vital industry, allowing them to move from strength to strength.


  1. HR Administration: Human Resources Tasks Are An Essential Aspect Of Your Business But They Take Up A Lot Of Time And Focus In Order To Complete Them Properly. HR Outsourcing Lifts This Burden Off Owners And Their Staff, Allowing Them To Focus On Growing And Developing The Business Itself. Having HR Tasks Competed By Specialists Also Ensures That All Your Processes Are Compliant With Relevant Laws – Giving You Additional Peace Of Mind.
  2. Recruitment: A Time-Consuming Task At The Best Of Times, Recruitment Means Pulling Your Resources Away From Urgent Tasks And Applying Them To Expensive Advertising, Interview Processes And Training. Outsourced Recruiting Is Faster, Cheaper And Gets You The Best Candidates From The Largest Recruitment Pools Without Placing A Burden On You And Your Staff.
  3. Payroll Administration: This Monthly Task Can Quickly Become A Nightmare For SMMEs. Taking On Your Own Payroll Means That SMMEs Are Diverting Vital Resources Into A Routine Administrative Task Rather Than Into Core Business Functions, While Outsourced Solutions Free You Of This Burden, Are More Affordable Than Hiring Staff To Handle This Function And Are Quality And Compliance Guaranteed.
  4. Industrial Relations: SMMEs Face A Lot Of Red Tape With Regards To Labour Management That Can Place Their Business Under Severe Strain. Ensure That Everything Is Above Board, Compliant With Laws And Within The Best Interests Of Your Company Without Placing Strain On Your Resources Through This Outsourcing Solution.
  5. Performance Management: Our Outsourcing Solutions Include A Range Of Tools That Can Be Completely Customised To Your Industry And Goals, Assisting You In Reaching Your Business Potential In Every Facet Of Your Company.

For more information on how Effectiveness Company is assisting performance improvement for SMMEs, please contact us today and ask about our affordable outsourcing solutions.