Pontica’s CEO presented the topic of Tactical and Strategic outsourcing to the students doing a Master’s in Outsourcing. - Pontica Solutions

Pontica’s CEO presented the topic of Tactical and Strategic outsourcing to the students doing a Master’s in Outsourcing.

Ivan Georgiev was a virtual guest lecturer for a second semester this academic year.

This week, Ivan Georgiev was a guest speaker at the ‘Management of Outsourcing Projects and Companies’ program. The lecture covered topics such as the types of outsourcing, the advantages and disadvantages of both tactical and strategic outsourcing as well as their structural differences. Client relationship Management was also discussed as well as some tips related to how to switch a client from a tactical to a strategic business model.

As part of the pros of the tactical outsourcing are the high business volumes and margins as well as the better conversion rates in sales. However, there are also some limitations related to a higher budget for sales, lack of business commitment and less leverage on clients’ operations.

When it comes to the strategic outsourcing, some of its benefits include the long-term contracts which lead to predictability of the businesses. There are also more opportunities for competitive advantage and for cross sell. Possible drawbacks of the strategic outsourcing might be the longer sales processes, the lower conversion rate in sales, the higher demands when it comes to quality and the overhead costs needed.

There are also certain differences in the structure of the two models such as the importance of client relationship which is greater in the strategic partnership compared to that in the tactical one.

The Master’s program in Outsourcing at the Sofia University is part of the Faculty of Economics and Business Administration (FEBA) whose main focus is on the economic practices of outsourcing and offshoring. You can learn more at: https://bit.ly/3c7Hcds.