Outsourcing in the Sectors of Trade, Industry, and Service (TIS): A survey analysis of Swiss companies
Offshore outsourcing has been implemented by companies since the early 1980s, as part of their strategy to keep up with an ever-increasing level of competition. As the world faces a disruption in the global supply chain due to the Covid-19 pandemic, domestic outsourcing is currently of relevance.
Alessandro Pace & Elias Erny & Hana Sophie Jäggi & Lukas Scherer & Noah Kissling, 2021
Betreuende Dozierende: John Paul Manning
Keywords: Sourcing, outsourcing, domestic sourcing, Switzerland, survey, questionnaire, current state of outsourcing in Switzerland in the TIS sectors, future state of outsourcing in Switzerland in the TIS sectors
Our client, a company in the auditing industry, requested us to provide insights on the sourcing potential in Switzerland of companies in the trade, industry, and service sectors (hereinafter TIS) excluding financial sectors. Despite holding knowledge on the financial and banking sourcing, certain gaps remain regarding the TIS sectors. Our client also pointed out that the regulations are currently not as clearly defined as for the financial sector, hence requesting us to investigate. Additional objectives consisted of providing recommendations for companies and improving transparency.
Research on existing literature was conducted, to define the different types of sourcing, to understand strategy patterns, and to analyze existing regulations in Switzerland. Further, selected companies in the TIS sector were asked to complete a survey. The first questions were meant for the categorization of the participants, whereas the second part provided specific information on the companies’ current position regarding outsourcing. The third section focused on how the organizations plan to manage their activities in the coming years. Recommendations were given based on the answers.
Having insights on the current state and the potential development of outsourcing in Switzerland is beneficial for our client since it allows them to assess and optimize their business opportunities. By understanding the advantages, disadvantages, regulations and legal aspects, our client can make informed decisions and potentially improve transparency.
Our study shows that approximately 67% of TIS companies outsource processes (e.g. ICT, Finance & Accounting and Internal Auditing), mainly to access expertise, cut costs, and comply with regulations. Currently, companies do not intend to further outsource or insource processes in the near future. Concerning regulations, companies ensure proper service management through contracts, reports, and certifications. Even though process outsourcing is generally not regulated by Swiss law, a few special cases exist. Most importantly is the compliance with data protection laws and their future development. Concerning recommendations, companies should consider outsourcing processes incrementally and to multiple service providers. Finally, it is highly advisable to assess which processes are suitable to outsource and which are not.
Studiengang: Business Administration International Management (Bachelor)
Fachbereich der Arbeit: Volkswirtschaft