The value of outsourcing in an internationalisation process

What is OUTSOURCING EXPORT?

Outsourcing is a management model according to which the company entrusts a specialised external company with the performance of certain tasks, functions and responsibilities, with no time limit, through a commercial contract and subject to the achievement of certain objectives that will mark the performance and continuity of the service.

It is, therefore, a model in which a third party outside the organisation is organically integrated into the structure of a company as another department and performs its functions in a similar way to any of the departments or areas that make up the company.

What are the defining elements of outsourcing?

1. Specialisation: Outsourcing is specialisation and expertise. It is knowing the path and the inherent risks that the organisation will face, and therefore knowing when and how to avoid them.
2. Clear functional delineation: By definition, outsourcing cannot be generic and must clearly state the roles and responsibilities it assumes. A clear, transparent and consensual functional definition with the rest of the organisation will facilitate day-to-day management and prevent possible internal conflicts, favouring full and effective integration over time.
3. Unlimited in time: outsourcing is not limited to a defined time frame, nor is it limited in time. Outsourcing has a start date, but no end date, and will continue until either party decides to terminate it.
4. Commercial contract: Outsourcing is materialised through a commercial contract. There are no associated wage costs, nor is a job consolidated.
5. Determination of objectives and expected results: In Export, outsourcing is determined by a clear objective: The increase of sales in international markets, the opening of new destinations or, where appropriate, the consolidation of existing ones.
6. Monitoring and reporting: Through fortnightly or monthly meetings, outsourcing provides first-hand information, not only on service performance, but also on market trends, product acceptance and even competition. Essential information for decision making.

In short, the company can continue to focus on day-to-day management and delegate the achievement of objectives and the increase of sales in international markets to a company specialising in foreign trade consultancy.