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There’s always been one main drawback of the trade industry (sales) - the dire need for an enormous number of employees and the corresponding financial expenditures. If you center your business solely around sales done by in-house workers, you risk going into the red. However, the progress is always in motion, which means that the world keeps witnessing the emergence of new forms and mechanisms of organizing sales aimed at decreasing expenditures. And one of the ways of cutting on expenses is sales outsourcing.

Outsourcing is the delegation of some processes to another company specializing in this particular sphere. At the moment, this solution is the key tool for staying afloat in today’s high competitiveness in the market. Surprising as it might seem, economy is the fourth most important factor clients consider when applying for help to an outsourcing company. First of all, there are several touchstones of a reputable outsourcing company such as the access to modern technologies and professionalism, the ability to respond to the changes in both the market and inside the company, the high speed of completing new tasks and solving the problems that emerge.
To outsource sales means to integrate into the latest tendencies of the commercial world.

The international experience in selling goods comes down to the understanding that a successful selling of the product depends not only on the effort of the participants, but also on how well you serve the product in the market. This means that even the best product on the planet should not only be delivered to the market in time and in the proper quantity, but also receive the required service after its sold as well as technical consultation, the replacement of details.

Types of Outsourcing in International Trade

If viewing outsourcing within the context of international trade, it can be divided into 3 parts:

Partial outsourcing

It’s the type of cooperation in which the company offering products and services passes to the contractor only specific tasks while strategic goals and their implementation are inside assignments. This method is most frequently used when generating costly products. Agreeing on this type of cooperation, the company eliminates its own risks - in the case of failure, partners share the damage.

Operational outsourcing

The company that owns products or services outsources the tasks and functions of an entire department to an outsourced sales team. For example, accounting services or transporting. At the same time, one employee or an entire department stays at the company in order to control the processes (for instance, the dispatcher controls transporting service.) By outsourcing the work processes the company’s departments do, customers gain the biggest income possible. This type of outsourcing is often used in regions with relatively small salary rates.

Complete outsourcing or business process outsourcing

Complete outsourcing is letting contractors handle not only the functions but also the departments of the company. This means that the company can outsource the creation of either the website or its content and provide some other services for the website maintenance. The main objectives of this type of outsourcing are the fastest possible provision of the new product into the market and the increasing of the market value of the company with the help of new ways of organizing the business. The fulfilling of the assignments in outsourcing is possible in two different variations - you either provide the resources for completing the tasks of the others or do your assignments at the expense of others’ resources.

Competitiveness and Outsourcing as the Reciprocal Drivers of a Company

Competitiveness is the main driver for the development of outsourcing. Market economy has reshaped the practice of business management, switching from administrative forms of management to outsourcing the processes, responsibilities, and obligations. This allowed to strengthen the vertical management of a company while developing it horizontally, as well, with the help of new partners and connections. Thus, there arose the need for assessing one’s competitiveness as well as detecting the key factors of success and focusing on their realization. The rest of the processes, in turn, should be passed over to the companies specializing in the completion of these processes.

Meanwhile, top management focuses on generating business ideas and creating development strategies.

To support the competitiveness in the market, the company’s management has to adapt to the changing conditions of the industry that can impact a business. The company’s preferences have to focus on the spheres of the industry that can help it realize its potential i.e. the sphere where the key business processes that will bring the best results. To put it bluntly, you should think about burgers when making burgers, not about what cars exactly you will be using when transporting them.

Yes, services such as transporting should be delegated to the company that specializes in transporting services and is interested in satisfying its clients just like you are. Thus, sales outsourcing companies need to take a different approach to the management process, creating new forms and methods for focusing on important things like the income your business receives, the quality of service, market share and the value of the business.

Outsourcing in International Trade

One of the main factors of international outsourcing is the involvement of countries, including their economy, to the system of the world’s economic connections. And, even though the political system of most countries is protectionist-oriented, their main goal is expanding the sales market of their own enterprises. And it’s this very goal that sets the beginning of any country’s foreign economic policy.

At the same time, when entering the international market, such companies engage in a heated competition with international enterprises and losing in this competition means suffering total failure. Just imagine the whole world narrowing down to the size of a regular market, where, among the numerous companies, only one sells the best product at the most convenient price. And now imagine that there’s you who has a dedicated budget and sdme requirements for the purchase. Given all this, you will surely buy goods only from this particular company, thereby leaving no chance for other companies to earn some profit and their earnings will start only when their leading competitor will turn out to be unable to service a specific number of clients.

This is what the international market experiences. To beat international companies, our entrepreneurs need to demonstrate at least some advantages that will let them compete with other enterprises.

Taking into consideration the constant need for increasing export, it would be reasonable to apply the methods that won’t take years to implement, but will be available in the shortest terms possible. We’re about to describe the very method that can provide a drastic increase in the products exported. This method is about involving companies in international raw materials and value chains. This type of cooperation has been around for a very long time, but is just starting to gain popularity.

It appeared when outsourcing was becoming more stable and now it allows passing over responsibilities and duties for creating certain products and its components. For example, the company that manufactures the Barbie doll that used to purchase raw materials in Japan and Taiwan, had the doll developed in Malaysia and Indonesia, bought it in the USA, while having the clothes sewn in China. Among all the world’s countries, the UK and Germany have the primacy in receiving similar orders.

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