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What is the cost/revenue structure of a outsourcing firms? (professional services, assets outsourcing.. etc.))

I'm curious to know about aspects of the Outsourcing 'industry' business model in general. 

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Top answer
Ian
Coach
on Apr 27, 2021
Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success

Hi there,

In general, the cost/revenue structure will match that of the industry. So, if you have a firm that outsources IT Developers, their costs will me significant in Labor, IT Infrastructure, etc. and their revenues will be labor hours/contracts.

Now, if the firm outsources, say, bottle manufacturing, then their costs and revenues will be entirely different (i.e. capex/factory costs, raw materials, R&D, labor, etc.)

on Apr 27, 2021
McKinsey | NASA | top 10 FT MBA professor for consulting interviews | 6+ years of coaching

Hi, it strongly depends on the industry. In the services (like call centers) main costs will be salaries, renting, technology, and headquarter costs

Best,
Antonello

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