Responding more quickly to a rapidly changing world - this is what companies want to achieve by outsourcing production processes such as manufacturing, distribution, logistics or warehousing to business partners. However, cost aspects are often the main driver, especially for smaller companies. On average, 60 percent of all companies, regardless of their size, hope to reduce expenditure. For companies with an annual turnover of up to 50 million euros, cost efficiency is by far the most important argument for outsourcing production processes at 66%. In mechanical engineering and industrial manufacturing, two thirds of companies pursue this goal. In the other sectors and company sizes, greater effectiveness by concentrating on the core business is the most common argument, relegating savings to second place.

On average, companies want to save 18.3 percent of the costs of their production processes through outsourcing, while companies with an annual turnover of less than 50 million euros are even hoping for 20.2 percent less costs with outsourced production processes. One in three companies in the wholesale and retail sector even has a savings target of more than 30 percent.

Agile and cost-efficient through difficult times

The coronavirus pandemic, as well as competitive pressure and other economic challenges, have caused problems for many manufacturing and trading companies in Germany. "SMEs and smaller industrial companies in particular need to review their cost situation. At the same time, it is becoming more important to focus energy on the core business," says Jens Karolyi, Senior Vice President Corporate Marketing & Culture at Interroll. "Agility through decentralized structures helps, because in uncertain times it is important to be able to react flexibly to new circumstances. Outsourcing is coming to the fore as a strategy."

In principle, the benefits outweigh the risks from the company's perspective. Doubters are outnumbered: only 13 percent of respondents state that the risks outweigh the opportunities of outsourcing. In contrast, 17 percent see more opportunities than risks. In comparison with other countries in the DACH region, Swiss companies are particularly convinced of the benefits (38%).

So far, however, only 65 percent of all respondents are satisfied with production outsourcing, compared to 70 percent in the services sector. However, there is also more experience there, as services are outsourced even more frequently overall.

"Outsourcing enables companies to respond to increasing cost pressure with flexible solutions," says Jens Karolyi. "Especially in difficult economic times like these, companies need strong partners they can rely on."