Production Outsourcing Services

Certus Corporate Service assist clients in the process of oursourcing production to countries in Asia and Africa.

The Global Markedplace
The world is changing and the way corporation shop has now moved not only cross boarders but also cross continents. In the global economy it can be a profitable business to move production to countries with lower productions costs. Certus can help your business in the process of  choosing the right jurisdiction for your production.

Outsourcing 
Subcontracting a process, such as product design or manufacturing, to a third-party company. The decision to outsource is often made in the interest of lowering costs, redirecting or conserving energy directed at the competencies of a particular business, or to make more efficient use of land, labor, capital, information, technology and resources.  Outsourcing involves the transfer of the management and day-to-day execution of an entire business function to an external service provider. The requires a high level of planning. Certus is serving an important part on the process of outsourcing.

Reasons to Outsource

• Cost savings: The lowering of the overall cost of the service to the business. This will involve reducing the scope, defining quality levels, re-pricing, re-negotiation, cost re-structuring. Access to lower cost economies through offshoring called “labor arbitrage” generated by the wage gap between industrialized and developing nations
• Cost restructuring. Operating leverage is a measure that compares fixed costs to variable costs. Outsourcing changes the balance of this ratio by offering a move from variable to fixed cost and also by making variable costs more predictable.
• Improve quality. Achieve a step change in quality through contracting out the service with a new service level agreement.
• Knowledge. Access to intellectual property and wider experience and knowledge.
• Contract. Services will be provided to a legally binding contract with financial penalties and legal redress. This is not the case with internal services.
• Operational expertise. Access to operational best practice that would be too difficult or time consuming to develop in-house.
• Staffing issues. Access to a larger talent pool and a sustainable source of skills
• Capacity management. An improved method of capacity management of services and technology where the risk in providing the excess capacity is borne by the supplier.
• Catalyst for change. An organization can use an outsourcing agreement as a catalyst for major step change that can not be achieved alone. The outsourcer becomes a Change agent in the process.
• Reduce time to market. The acceleration of the development or production of a product through the additional capability brought by the supplier.
• Commodification. The trend of standardizing business processes, IT Services and application services enabling businesses to intelligently buy at the right price. Allows a wide range of businesses access to services previously only available to large corporations.
• Risk management. An approach to risk management for some types of risks is to partner with an outsourcer who is better able to provide the mitigation

Security 
Before outsourcing an organization is responsible for the actions of all their staff and liable for their actions. When these same people are transferred to an outsourcer they may not change desk but their legal status has changed. They no-longer are directly employed or responsible to the organization. This causes legal, security and compliance issues that need to be addressed through the contract between the client and the suppliers. This is one of the most complex areas of outsourcing and requires a specialist third party adviser. Certus act as an active partner in this phase.

If interested please contact us at 1-877-244-7030 for more information.