Outsourcing more popular as crisis pinches Polish firms

The global financial crisis is benefiting the outsourcing market in Poland, as companies look to reduce costs wherever they can, according to a recent study by outsourcing services provider ArchiDoc.

Polish companies outsource information technology and back-office processes more than other services, and these are mainly outsourced by the financial and auto industries. Over the next two years, the use of outsourcing services will grow most in the financial and infrastructure sectors, the report said.

"Back-office outsourcing is one of the ways to rationalize a company's outlays. During an economic slowdown, thanks to cooperation with professional subcontractors, companies can achieve higher operational efficiency and limit fixed costs," said Piotr Cholewa, the president of the board at ArchiDoc.

In its report, ArchiDoc listed the benefits of outsourcing as seen by the companies who use them. Among the most important positives were: the ability to save time, the ability to concentrate on a company's primary activity and a reduction of costs. Another important advantage which firms mentioned was that outsourcing saves valuable space.

The research showed that nearly half of the respondents used outsourcing. However, in some industries, from 25 to 56 percent of companies declared that they had no intention of introducing outsourcing.

"In a couple of years these companies will change their minds. The reason: impairment of the market," said Cholewa.

"Some firms still use outsourcing solutions only when the need to modernize or reconstruct some of their divisions arises. Moreover, companies have concerns about safety and unsatisfactory quality of service," said Marek Bronder, managing director for sales and development at ArchiDoc.

Many companies responding to the survey were planning to contract out some tasks, indicating that the outsourcing industry will develop quickly in the near future.