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

MBB outsourcing
New answer on Apr 27, 2021
2 Answers
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Anonymous A asked on Apr 26, 2021

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

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Ian
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replied on Apr 27, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

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.)

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Antonello
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replied 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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Ian gave the best answer

Ian

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