Preliminary results of outsourcing popularity ranking into foreign companies in Russia
Outsourcing division of BDO in Russia and the rating agency RBK.Rating summed up the preliminary results of the popularity ranking of business process outsourcing for foreign companies in Russia. In total the project involved more than Protected content companies in Russia, represented in all market segments. The project is supported by partnerships of Outsourcing Professionals ASTRA.
11 of the most common functions had been selected as the object of study in demand for outsourcing by foreign companies, including solicitation of visas and work permits for foreigners, legal support of foreign companies in Russia, transport and logistics, accounting as a whole and accounting for areas, payroll, recruitment and training, documentary personnel records, software maintenance and some other functions, that are often outsourced to specialized providers. The project participants are foreign companies from more than 20 market segments, such as consumer market, chemical industry, light industry, pharmaceuticals, banking, etc.
The main objective of the study is not only determine the attitude of representatives from foreign companies to internal functions outsourcing, but also to compare the popularity of outsourcing in the Russian and foreign companies represented in Russia in regard of different internal functions types. The preliminary results of the study show that the attitude is a fundamentally different (see table 1).
The first place in popularity is taken by visas and work permits solicitation and legal support activities (58%), the second – by services in logistics and transport (53%), the third place - outsourcing of accounting for areas. According to respondents’ responses, the foreign companies also prefer to outsource the payroll processing.
The study’s sample is formed on the basis of a single criterion - the share of foreign capital in the company's capital.
The most popular functions for outsourcing in Russian companies are "non-critical" ones, such as security, services (including cleaning services, catering, etc.), logistics and transport, they occupy the first three rating lines. The typical functions for business process outsourcing, for example accounting functions, are situated in the bottom of the table. It suggests that at the present, Russian companies implement these activities using theirs internal resources (see Table 2).
The ranking of quantitative variables (including the ranking of outsourcing popularity by types of internal functions, evaluation of the importance of various factors when making decisions about outsourcing etc.) is making on a scale of one to ten. The ranking by qualitative indicators is making on the number of positive and negative responses received in the course of the study. As a result, comparison of popularity of outsourcing by type of internal functions of Russian and foreign companies is as follows (see Table 3).
Sergei Tiunov, CEO, BDO outsourcing division in Russia:
- Preliminary results of surveys among foreign companies, that we summed up in July, clearly showed what is difference today between the perception of such tool like outsourcing of internal functions by representatives of Russian and foreign companies.
In foreign companies in Russia practicing outsourcing of such functions as accounting or payroll is fairly common. The companies realize that this is a quite flexible tool for optimizing internal functions. As a strong point of outsourcing I would mention, first of all, cost reduction for companes, a high degree of privacy protection of customer’s personal data, business process automation and minimal dependence on human factors.
As shown by the results of our first study, many Russian companies, small and medium businesses, are not familiar enough with this instrument, so the auxiliary functions, such as physical security or cleaning, are primarily transferred to outsourcing. The outsourcing of crucial functions, such as accounting, is popular in foreign and large Russian companies. Only practices of legal support, training and recruitment outsourcing are quite similar among foreign and Russian companies. As business process outsourcing in Russia pursues its development, the popularity of crucial functions’ outsourcing gets grown.
Dmitry Prytin, editor, RBK.Rating:
- Interest of the business community in the study, of course, is quite high. First of all, a detailed study of business process outsourcing in Russia with the ranking with regard to Russian and to foreign companies represented in Russia, has not yet taken place, as previously most companies were basically experienced only at IT-outsourcing. The transferring of service sector and physical protection functions to a third party was rarely viewed in term of outsourcing. Now we can see that the decrease in the proportion of "gray business" contributes to the promotion of business process outsourcing as a tool for costs reducing.
I think that the final results of the study, which we plan to sum up and publish in late September, will be interesting not only for decision makers, but also of the general public and the media.
BDO Group is audit and consulting group with 100% Russian capital, which operates on the Russian market since Protected content . Since Protected content , it makes a part of BDO International, one of the world's largest international organizations, uniting independent audit and consulting firms in Protected content . Today the group BDO offers comprehensive support in the following areas: audit, consulting on taxation, financial consulting, management consulting, implementation and support of business applications. More than half the companies from the Top Protected content business are our clients. More than Protected content are working in the group's offices, located in all federal districts of Russian Federation. In Protected content , group turnover exceeded 4.1 billion rubles.
BDO Outsourcing division
The division specializes in outsourcing of business processes in finance and accounting for companies with different forms of work organization and organizational structures. It won a first prize in the nomination "outsourcing of financial functions” in the context of the first national awards in the field of outsourcing," Atlanta Business ", organized under the auspices of the International Association of Outsourcing Professionals (IAOP). The division has a successful experience in developing and implementing processes of payroll processing for outsourcing clients. The division employs about Protected content , serves more than Protected content . Professional risks are insured by ROSNO, as well as by the united global system of professional liability insurance of BDO International.
RBC.Rating is a rating media agency. The project involves the regular publication of rankings and ratings on a variety of industries and businesses. One of the objectives of the project RBC.Rating is accumulating of all information about the ratings and ranking on companies, financial institutions and markets of Russia and developed countries. As an online project, RBC.Rating can compile and keep at date ratings, which gives them a special advantage over the press, that becomes obsolete in the process of typesetting. RBC.Rating is focusing not only the stock markets. Consumer ratings occupy a special palace in the project.
Partnership represents an independent center of competence in the field of IT outsourcing.
The objectives of the Partnership include advising, expertise, analytical research, training, lobbying outsourcers, initiatives to laws and regulations changes (regulations of state companies, insurance contracts, etc.). More then this, the Partnership is intended to be a risk-free "entry point" for Russian consumers of IT outsourcing. Protected content