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Is it worth outsourcing field teams in Brazil?

Yes, it's really worth it.


During the last 20 years of operation in the Brazilian and Latin American market, 17 years were dedicated to the outsourcing segment, with more than 400 projects designed and implemented for large corporations, in the vast majority are global market leaders in their sector or key industry players. I was constantly asked about the real advantages of outsourcing teams in Brazil. Recently, in June 2021, this question came back from the Commercial Director of the largest egg producer in the north and northeast of Brazil. He wanted real arguments to clarify, the advantages of outsourcing field teams in Brazil.

Photo: Field worker working in supermarket


After a good conversation via videoconference I formalized the following advantages about outsourcing teams.


1st Low cost: when we work with internal teams, most of the time we do not see the indirect costs, which go far beyond the direct costs with salaries, charges, benefits and work tools of the field teams. Costs that are often not exposed, mentioning working hours in internal areas such as Personnel Department, Human Resources, Legal, labor processes, hiring investments in specialized systems, fleet maintenance, for the activity to be performed, cost of employees replacement in case of "turnover", specific training, among numerous other costs, which reinforce the demand for investment to be efficient. When the company decides to outsource the process as a whole, the expense becomes better controlled, being treated as a single, fixed expense, facilitating and forecasting the annual budget without major surprises.


2nd Capillarity and Growth of Operations: Outsourcing field operations, with a specialized and well-structured supplier, with a good presence of branches throughout the national territory, allows the contracting party (service borrower) to gain greater competitive advantage. If the contractor decides to expand operations to other locations, it quickly does so, without having to increase costs with internal departments to support this expansion. With the outsourced team, the contractor simply asks the supplier to expand the contract to other locations, without the need to modify processes.


3rd Increased efficiency: Composing a field project requires specific knowledge, routing processes, coverage of service points controlled by specific and customized systems, control of the working hours of external teams, control of planned tasks, tasks performed, attendance x absenteeism, control of field indicators, dedicated recruitment and selection, specialized and trained professionals and control by modern and friendly tools. These processes can be easily eliminated and passed on to specialized suppliers.


After all, the main objective of outsourcing is to raise the quality of projects, with financial control and increased productivity.

But after all, how does the cost breakdown of outsourcing companies work?


Outsourcing projects are generally financially composed as follows:


1. Salaries (+Incentives and/or commission);

2. Charges (Groups: 1, 2 and 3);

3. Benefits (Follow Union Convention);

4. Work Tools (Uniform, PPE, Systems and whatever else is necessary or mandatory for the project);

5. Systems;

6. Fee and;

7. Taxes.


If you want to know more about outsourcing in Brazil, indication of outsourcing companies, understanding of charges and taxes, please contact K | BRAZIL through the email contact@kbrazil.com.


Written by Dorival Kulicheski on 06/15/2021 
More than 20 years in the Brazilian market helping companies to do business 
https://www.linkedin.com/in/dorival-kulicheski/
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