Outsourcing: what industry experts say
"Why do 58%[1] of companies participating in the B1 survey already use or plan to use outsourcing, and 70% are willing to entrust their accounting, finance and tax compliance functions to external providers? The answer is—because they want to solve their HR challenges, and do it in a safe and cost-effective way. Outsourcing allows companies to focus on building a competitive edge and stay flexible and agile in an ever-evolving domestic and global business landscape."
Svetlana Pushkina
B1 Partner, Accounting Compliance and Reporting Leader
"We quite often outsource our support functions, such as accounting, call center, and engineering services. I really like working with outsourcers—it is convenient. At Academician Roytberg Clinic, we prefer to enter into fixed, long-term contracts to mitigate the impact of market-driven price and wage rises. If any issues come up, they are resolved promptly."
Vladimir Chernov
CFO, Medicina JSC (Academician Roytberg’s Clinic)
Solving staffing challenges goes beyond simply reallocating internal resources. Best practice involves adopting an integrated approach, with some functions outsourced to external providers.
58% CURRENTLY USE OR PLAN TO USE OUTSOURCING
This trend is particularly pronounced in finance, accounting and HR—the functions where strong project management, industry-specific expertise, and data integrity are critical. This is why outsourcing is increasingly seen as a strategic solution for companies facing skilled labor shortages.
WHAT OUTSOURCING HAS TO OFFER
- Enables leadership to concentrate on strategic governance and business development. By focusing on core business areas, companies can drive growth and strengthen their market position
- Addresses staff turnover while ensuring robust financial processes—without increasing headcount
- Provides reliable support through a dedicated team of professional consultants, fostering long-lasting partnerships that drive continuous process enhancement. Productive collaboration with subject matter experts also reflects positively on the company’s reputation
"One clear advantage of outsourcing is the money we save on office space and payroll. We don’t have to rent an office or buy and maintain computers. Our clinic is in Moscow, so if we hired office or accounting staff, we’d have to offer competitive salaries. But with outsourcing, the team can be based anywhere across the country, including locations where salary expectations are lower. And thanks to modern technology, we remain in constant touch with our providers."
Vladimir Chernov
CFO, Medicina JSC (Academician Roytberg’s Clinic)
"We had a great experience working with an outsourcing company. The key distinction between a shared service center (SSC) and an external provider lies in the breadth of multidisciplinary knowledge and expertise available at both management and staff levels. External providers generally have larger teams and greater flexibility to rotate personnel and recruit young talent eager to grow their careers. Working with an external provider opens access to cross-industry expertise, empowering businesses with professional knowledge and guidance across multiple disciplines."
CFO, Manufacturer and distributor of perfume and beauty products preferred not to disclose their personal or corporate identity
Many business sectors increasingly view outsourcing as more than just a cost-saving measure, but a fundamental part of their corporate philosophy—a solution enabling leadership to concentrate on more value-adding activities while leaving non-core tasks to dedicated professionals. By outsourcing support functions, management and staff can redirect their time and effort to innovation or development of new products or services.
70% ARE WILLING TO OUTSOURCE THEIR ACCOUNTING, FINANCE, AND TAX COMPLIANCE FUNCTIONS
"Shared service centers emerged in the early 2000s as a stepping stone between fully in-house operations and an outsourced model. Companies would typically begin by transferring a function to the SSC to understand how much it costs and how it works. Over time, they might choose to divest that business or outsource the function outside the corporate group. Some SSCs have since evolved into service providers in their own right and entered the open market as independent players."
Dmitry Stapran
HBS graduate, Professor at Moscow State University, Russian Presidential Academy of National Economy and Public Administration and MGIMO University business schools, author of the book “Outsourcing and Corporate Boundaries: How to Outsource Safely and Build Trust with Partners
"Manufacturing and logistics, each showing 45% year-on-year growth, remain the sectors with the highest demand for outsourcing services, followed by IT with a 30% increase. Businesses have adapted to the new market reality by choosing models that offer the greatest value, efficiency and ease of control. Faced with limited access to labor and unable to afford to raise wages without corresponding gains in productivity, companies are placing more focus on cutting operational costs, including by outsourcing certain processes."
Nadezhda Oskina
CEO, Manpower
58% VIEW GETTING RID OF ROUTINE TASKS AS A KEY DRIVER FOR OUTSOURCING
HOW OUTSOURCING CAN BENEFIT YOUR BUSINESS
- Scalability and flexibility. External providers are better positioned to adapt to your evolving business needs—scaling up or down without the staffing challenges that come with internal arrangements.
- Lower risk of loss, breach or misuse of data. A reputable provider is highly unlikely to lose or mishandle client data. Professional outsourcing firms have clear policies and procedures in place to ensure compliance with personal and corporate data privacy laws, maintain robust IT systems, and carry insurance to cover business and reputational risks.
- Extensive expertise and cross-industry insight. Outsourcing firms work across industries, stay abreast of the latest developments and technologies, and can bring in experts from related fields to meet individual client needs. This access to up-to-date knowledge and diverse capabilities is difficult—if not impossible—to replicate in-house.
- Cost savings. Service fees charged by outsourcing providers are often significantly lower than the full cost of running an equivalent function internally.
- Reduced risk of losses due to human error. Partnering with experienced professionals helps minimize mistakes made by underskilled staff. And if errors do occur, providers are generally prepared to compensate clients for any damages caused by their outsourced team.
"Currently, the main reason businesses turn to outsourcing is that they face internal constraints on recruitment to replace leavers—while still needing to keep processes running. This strategy has proven successful: the outsourced functions continue to operate smoothly, the provider demonstrates drive and initiative, works proactively, and maintains regular communication. Our business relationship has developed into a true partnership."
CFO, Manufacturer and distributor of perfume and beauty products preferred not to disclose their personal or corporate identity
rely on outsourcing to address their staffing issues
of outsourcing clients are satisfied with the quality of services
"Localized business processes and the need for alternatives to foreign solutions, including IT, have spurred demand for domestic outsourcing services. Cloud computing, automation, and cybersecurity solutions continue to gain traction in the IT domain. Small and medium-sized businesses are increasingly outsourcing their IT infrastructure. We’ve also observed marked growth in demand for outsourced office functions, driven by a shortage of skilled professionals—especially in IT, engineering, and marketing—as well as the need to delegate certain project-specific tasks that the in-house team is not large enough to cover. Businesses now tend to opt for hybrid work models, blending internal teams with outsourcers to enable more flexible workforce management."
Oleg Tkachenko
CEO, LANTA Talent Solutions
Outsourcing means close cooperation between the provider and the client to maximize efficiency
- Professional outsourcing is not just about filling a position—it involves delivering a comprehensive service package in a given field.
- Providers often have experience across various industries, enabling them to offer cross-functional solutions and best practices tailored to individual client needs.
- Outsourcing companies go beyond mere service provision to become trusted technology partners, driving innovation and automating processes to boost efficiency.
- By outsourcing, businesses achieve greater financial transparency—earning them a competitive advantage in the eyes of customers and investors while improving control over costs and revenue streams.
- Providers evolve into trusted business advisors, offering tailored recommendations and ongoing support.
Outsourcing provides substantial savings by reducing costs
- Outsourcing saves businesses money on employment-related expenses, such as payroll, taxes, training, office space, and equipment.
- Outsourcing certain functions alleviates pressure on in-house IT teams, as many providers use their own systems and technologies, relieving clients from the burden of maintaining and upgrading IT infrastructure.
- Companies that have embraced outsourcing are better positioned to respond to seasonal fluctuations in business by scaling services up or down as needed.
Outsourcing is not just about convenience and savings—it’s also about security
- Professional outsourcing providers closely monitor regulatory developments to adapt their clients’ processes to new requirements, minimizing the risk of non-compliance penalties.
- Outsourcers employ state-of-the-art software solutions and technologies to automate workflows, enhancing efficiency and reducing errors.
- Professional providers leverage advanced security to safeguard financial data—something much harder to achieve with a small in-house team.
- Outsourcing helps businesses avoid over-reliance on particular staff, reducing the impact of resignations or sick leave among key employees.
"Shifting to an outsourcing model may require tighter control and more careful planning from management than relying on permanent staff—especially when it comes to implementing new functionality. That said, outsourcing offers far greater flexibility: unlike with in-house employees, contracts with external providers can include specific requirements, KPIs and penalties, while also saving time and effort on hiring and retaining talent."
Vladimir Chernov
CFO, Medicina JSC (Academician Roytberg Clinic)
"The key benefits of outsourcing include fast handover, access to external expert knowledge and skills, readily available specialists, and the flexibility to adjust staffing levels to match the workloads without sacrificing cost efficiency. This takes our business performance to new heights. What really makes a difference is the synergy of a one-stop-shop model, where consultants from related fields work together under one roof. It simplifies information sharing and makes collaboration more efficient. Prior experience with international clients is also a big plus, as it gives providers valuable insight into cross-border operations and allows them to offer more relevant and informed advice."
CFO, Manufacturer and distributor of perfume and beauty products preferred not to disclose their personal or corporate identity
Larger companies go for outsourcing when they want to improve their cost effectiveness and relieve themselves of routine and/or non-core functions and HR-related burdens.
"As a company dealing with personal data and medical confidentiality, we take cybersecurity and safeguarding information from unauthorized access very seriously. With the growing risks around information security, we regularly turn to external providers for support because it’s just tough to keep the right level of protection using in-house resources alone."
Vladimir Chernov
CFO, Medicina JSC (Academician Roytberg’s Clinic)
Cost and data security concerns are the biggest barriers preventing businesses from outsourcing some of their functions. Interestingly, the larger the company, the less likely it is to cite these factors as concerns. One possible explanation is that companies with a significant workforce benefit more from outsourcing support services, and their management is well aware of the high quality and robust data protection offered by external providers.
"Fears about outsourcing may be partly attributed to a general lack of trust in business. The last Edelman Trust Barometer survey covering Russia reveals that in 2022 it ranked lowest among the 28 countries surveyed, with only 34% reporting trust in business, compared to an average of 61%. Without trust, it’s really hard to go for outsourcing. The good news is that trust in business[4] has grown quite a bit over the last few years, hitting 63% according to a recent survey by the National Agency for Financial Studies (NAFI).[5]"
Dmitry Stapran
Dr. Sci. (Econ.), HBS graduate, Professor at Moscow State University, Russian Presidential Academy of National Economy and Public Administration and MGIMO University business schools, author of the book
"In 2025, the national outsourcing market is set to continue its growth trajectory in terms of both the range of services and digital reach through platform solutions—aiming to improve client-provider interaction, streamline HR processes, and enhance communication and project team management."
Tatiana Baskina
Deputy CEO, ANCOR Group
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AUTHORS
Svetlana Pushkina
B1 Partner
Accounting Compliance and Reporting Leader, Tax and Accounting Operations, Tax, Law and Business Support
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Ekaterina Kuzmina
B1 Senior Manager
Accounting Compliance and Reporting, Tax and Accounting Operations, Tax, Law and Business Support
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