Rus News Journal

Carefully: outsourcing!

on August, 11th and 12 the London airport Heathrow has been paralysed from - for the labour conflict in Gate Gourmet - the company serving under the contract of outsourcing of British Airways, the largest British airline. A similar case not the first in practice of the large companies. Outsourcing - promising means of reduction of costs - even more often turns to a source of serious problems. To break a situation, both parties should change the relation to this business, having transformed it from a way of achievement of short-term benefit into the tool of strategic development.
promising means
              In crisis 1990 - e years autsorsingovye transactions have taken on special significance. Practice of transfer to the counteractor of some functions or parts business - company process, it is frequent with a conclusion abroad the workplaces, received the name outsourcing Became one of the most demanded tools of corporate governance. Outsourcing promised fast reduction of costs, so, solid advantage before competitors.
              long time was considered as the main benefit of outsourcing decrease in costs. So, at the expense of a conclusion abroad manufactures of accessories of the price for computers and the telecommunication equipment in the USA in 1990 - e years have decreased on 10 - 30 %. It has liberated means for investments in IT - the industry. The conclusion abroad workplaces too makes direct profit. Research McKinsey Global Institute has shown that from each dollar spent for outsourcing to India, the American economy gets profit in size at least $1,12 from which $, 58 the companies - to the employer leave. Thus, according to the director of institute McKinsey Dajany Farrell, means for scientific researches are liberated. For example, sending x-ray pictures of the clients on the analysis to India, the medical companies from the USA could increase investments into scientific workings out at the expense of health services depreciation.

a corporate fashion
              the Promise of fast benefit promoted transformation of outsourcing from the tool of mainly crisis management in some kind of a corporate fashion. Induced by a competition, the companies have started to transfer to counteractors more and more functions and business - processes.
              outsourcing of technical works in aviatransportations during the last years has considerably grown. According to the ministry of transport of the USA, in 2004 53 % of all basic technical works in the American airlines it was carried out by counteractors - against 47 % in 2003. In 1999 only third of all works was carried out out of states of the companies.
              Fast rates outsourcing grows in an aircraft industry. According to Sergey Kravchenko, the vice-president of company Boeing on Russia and the CIS, for last three - four years any new model of civil planes Boeing has not appeared without participation of the Russian engineers from the design centre of the company in Moscow. In it are occupied about 1 thousand persons and it is still involved about 400 scientists in seven cities. About third of design work on Boeing 777 - 300 the Russian experts have executed, they actively participated and in working out innovative Boeing 787, 50 which % will be made of composit materials.
              in process of growth of economy developing countries start to act not only suppliers, but also customers of services of outsourcing. So, according to Ashoka Bavezhdy, the head of Indian state aviation company Hindustan Aeronautics Ltd (HAL), in connection with intensive development of the company of 35 % of all volume of its manufacture - components, spare parts and systems for planes and the land equipment - it is planned to transfer to counteractors, both Indian, and foreign: Boeing and Airbus, Eurocopter, Israeli Aircraft Industry and Japanese MHI. For two years from the beginning of programs of outsourcing in HAL its volume has grown from $20,4 million to $45,4 million last year and can already make $227,2 million in the near future. Thus staff was reduced from 44 thousand to 29 thousand persons.
              the market of financial outsourcing - from conducting accounts department before operational support and management of actives promptly extends. The prisoner in February, 2005 contract ING Wholesale Banking, divisions of Dutch group ING, on all operations with securities with GSSI - bank Societe Generale division on work with investors on global securities markets became the certificate of qualitatively new level in development of this market. In February of last year GSSI has been allocated from SG specially for such outsourcing. About 20 employees ING pass to work in GSSI to provide transition of the customer to systems SG on operations with available funds and securities. According to head GSSI Phillip Robejnsa, this segment of broker services is haute couture financial outsourcing and has high potential of growth. Growth deterrents are danger of disclosing of the confidential information and the potential conflict of interests which is especially actual for the big investment banks working simultaneously in the different markets. However, according to mister Robejnsa, it is much more important that at a small margin and the out-of-date operating systems which modernisation will demand the big investments, outsourcing will allow banks to cut down expenses on 10 - 15 % for three - five years.

the first disappointments
              Explosive growth of outsourcing was accompanied by occurrence of problems which even have generated the special negative term - outsourcing school of management. It, in particular, described scandal around BA. The largest British airline which had the contract on delivery of a food with American kejteringovoj by company Gate Gourmet, has appeared the hostage of its labour conflict. To spontaneous strike of handymen Gate Gourmet protesting against dismissal of colleagues, members of the same trade union from staff most VA have joined. It has been cancelled about 700 flights that has mentioned about 100 thousand persons, and straight losses BA have made $72,5 million
              In the end of August it was found out that with Gate Gourmet other problem - some tests of the dinners put by it between August 2003 and August, 2004 is connected also, contained dangerous bacteria - E. coli and stafilokokki. And though these dinners have not reached passengers BA, promulgation of this fact has aggravated a question on quality of the services received by means of outsourcing.
              strike of mechanics of airline Northwest, begun on August, 20th, directly has connected a question on quality of services of counteractors with a problem of safety of flights. Northwest intend not only to lower the salary to regular mechanics, but also to transfer a work part to cheaper counteractors in the USA and abroad. Outsourcing has already allowed Northwest to reduce staff of serving technicians from 10 thousand in 2001 to 4,4 thousand now. And it only reflexion of the general tendency. JetBlue Airways and America West Airlines serve the planes in the Ale - El Salvador, Northwest and Continental Airlines - in Hong Kong and Singapore, Delta Air Lines transfers this work to division Air Canada. But also in the USA many companies employ counteractors, mainly in southern states where the labour is cheaper.
              trade unions, in particular Aircraft Mechanics Fraternal Association which includes mechanics Northwest, consider that it leads to infringement of standards of safety. In January, 2003 flight US Airways Express of operator Air Midwest has broken right after launch in Charlottes, the State of North Carolina, partly from - for errors of not skilled mechanic from the company - the counteractor, 21 persons was lost. In March 27 illegal immigrants from Central and the South America, Sudan and Philippines which worked in one of the largest companies - counteractors on service of planes in Greensboro, the State of North Carolina have been arrested. The congress of the USA insisted on introduction by August, 2004 uniform for all foreign aviakontraktorov the safety report, with careful selection of the technical personnel at employment, however it has appeared impossible of - for nestykovok with the local legislation.
              quality IT - outsourcing too often leaves much to be desired. So, the American investment bank Lehman Brothers Holdings Inc. Has translated to India of 20 % IT - operations under contracts with companies Wipro Ltd. And Tata Consultancy Services, however then has reduced cooperation from - for poor quality of service.
              In the market of financial services of a problem with outsourcing became especially obvious after the British company on management of actives Schroders in July of this year declared rupture of the five years` contract with division JP Morgan - Worldwide Securities Services - on services of operational support. In 1980 - e and 1990 - e years of the company on management of actives of all ways aspired to their increase. However many were unable put in development of the infrastructure necessary for work with the growing volume of actives. After crash of stock markets cost of actives and consequently, and incomes of management companies have fallen. However the number of clients remains former, and it the same level of operational support was required. There was a severe need to lower costs, and managers began to transfer to counteractors investment operations. To receive business, counteractors offered every possible ways of decrease in costs irrespective of, it was defensible or not. Haste at the conclusion of some transactions led to that they could not be executed. Concluding contracts simultaneously with different customers, counteractors appeared before necessity to work with several incompatible systems and processes. It is no wonder that such relations could not be successful in long-term prospect.
              about scale of the problems connected with outsourcing, tell the data of research Deloitte Consulting published in April to Change outsourcing model . From 25 participants - the large organisations with total amount autsorsingovyh contracts in $50 mlrd 70 % had negative experience with counteractors, 44 % have not received expected reduction of costs, and one of four companies has returned the transferred functions in the basic business. About 80 % interrogated have specified that the most widespread problem are the latent expenses from - for absence of access to structure of the prices and costs of the counteractor, 62 % - that was required to increase administrative staff and 57 % - that could not release internal resources for other projects. That is, resorting to outsourcing with a view of reduction of expenses and simplification of management, the company actually often receive one more level of complexity that conducts to increase in expenses and management complication. This absurd situation forces to reconsider the outsourcing concept completely.

typical problems
              That outsourcing application was effective, both parties - the customer and the counteractor - should change the relation to this business. Thus on the foreground there are not short-term problems of decrease in costs, and long-term problems of working out of strategy of business.
              Inadequacy of existing practice of outsourcing was designated especially obviously when the economic crisis was replaced by growth. Ken Lendis, one of authors of research Deloitte Consulting, considers: When incomes fell, outsourcing was the fine tool for the public companies to raise the efficiency. However in the conditions of economy growth on the foreground there are problems connected with outsourcing, in particular necessity to combine culture of two different companies. It is slow ability of the companies to react to changes . According to mister Lendisa, now outsourcing is a question business - strategy, instead of decrease in costs . Thus, for the large companies which see in outsourcing only the economy tool, its appeal decreases. However if the companies accurately formulate problems and use correct model of outsourcing, it can become the effective tool of strategic development. Perspective authors of research consider manufacture outsourcing (instead of functions), and also outsourcing for the purpose of decrease in risks and transformation of the fixed expenses into the floating.
              Besides, according to representatives International Labour Organisation at the United Nations, time has come to change and the labour legislation as outsourcing, promoting, on the one hand, to employment increase, with another - deprives the increasing number of people of elementary protection which regular employees use. It also conducts to the conflicts similar to volume that has paralysed Heathrow. After all the effective momentary economy without a damage to business in long-term prospect cannot be.

is better to serve the Russian planes independently
              The Approach to outsourcing of the Russian airlines very simple - simple works are carried out independently, difficult - are transferred to outsourcing.
              according to the technical director Aeroflot Yury Belyh, the company serves domestic types of aircrafts almost completely independently, except repairs of engines - they are served by manufacturers. Available at Aeroflot family A320 planes Airbus partially serves Lufthansa Technik, and engines and brake systems - manufacturers: Snecma and Goodrich. So-called with - chek (capital service of times in 15 - 18 months) aeroflotovskih Boeing 767 are transferred Air France company. if planes of one type in park less than 25 units, the organisation of own base is inexpedient - the mister White speaks.
              The second-large Russian company - " uses services of contractors also; Siberia (though the most part of procedural works carries out it a daughter Open Company Siberia the Technician ) . Its planes Boeing 737 are served by the company Ist Lajn Teknik . On kinds of works by which this company cannot do by own strength, one of contractors gets out: Lufthansa Technik, Lithuanian Airlines, Sabena, SR Technik, Jordanian.
              almost all domestic technics of aviaalliance AiRUnion led by Krasejrom it is served on own bases of airlines - partners in Samara, Krasnoyarsk and Moscow. An exception make Silt - 96 - 300, the Yak - 42 and Silt - 62, served on the party. but we move to creation of own base for foreign planes, - Ivan Popov speaks zamgendirektora AiRUnion. - from mine 20 - summer experience on aviation - technical base of the best relation to planes, than houses, are not present anywhere. Though own base also demands the big expenses, service on it is always more qualitative .