Outsourcing of functions and consequent reduction of the workforce, in order to take advantage of the benefits of Global Business Centers (GBS) and Centers of Excellence (CoE)
Context:
The Company was part of an important international Group, dedicated to electrical engineering and automation. The Company’s market context, marked by the contraction of the local market, which forced it to seek foreign markets, as well as the increase in competitors and greater pressure on prices, generated the need to maintain high levels of efficiency, which would allow the Company to be more competitive and at the same time have the resources to invest in internationalization and innovation. o this end, it was necessary to take advantage of the Global Business Centers (GBS) and Centers of Excellence (CoE) of the Group to which it belonged.
How we helped:
During the project:
- We analyzed the various sectors where the Company operated, identifying the consequences of the change from the local business model to a highly competitive global model.
- We analyzed the Company’s level of activity, identifying a drop in its activity due to the deterioration of the local markets and price pressure.
- We analyzed the Company’s efficiency, measured as its profitability at the EBITDA level.
- We analyzed the Company’s operations, detecting several inefficiencies as well as potential areas of improvement that would allow to maintain / improve the Company’s competitive position.
- We proposed measures with the objective of eliminating the inefficiencies detected and taking advantage of the opportunities for improvement: (i) cessation of a loss-making business line, (ii) change in commercial management, and (iii) improvement in work methods in a global work environment, taking advantage of the opportunity to receive highly specialized services, with a global scope, from the GBS and CoE of the Group to which the Company belonged.
Following the preparation of the technical report, we attended meetings with the Works Council to present the findings of the report and answer their questions and doubts. An agreement was reached with the Works Committee.
Result:
A collective dismissal was successfully carried out by the Company.