What are the advantages and disadvantages of outsourcing corporate travel management?

RAQUEL GUTIÉRREZ, Director of NIKMA CONSULTING

 

A company can outsource the entire travel account, or it can outsource part of the recruitment and negotiation to focus on more administrative work.

Some of the areas or processes you can outsource are: the agency selection process, the implementation of a payment method, a self-booking or expense settlement tool, the negotiation with suppliers and the follow-up of agreements, the optimization of the payment policy, the implementation of a payment method, the implementation of a self-booking or expense settlement tool, the negotiation with suppliers and the follow-up of agreements, the optimization of the payment policy, the implementation of a payment method, the implementation of a self-booking or expense settlement tool, the negotiation with suppliers and the follow-up of agreements, the optimization of the payment policy and the follow-up of agreements, the optimization of the payment policy and the follow-up of agreements;

The optimization of the travel policy, the hotel program, internal communication with travelers through the intranet, insurance and travelers' security, internal training, etc.

 

ADVANTAGES OF OUTSOURCING

-By outsourcing non-strategic activities, the company will be able to concentrate its efforts on key business activities.

-Outsourcing can bring significant cost reductions, since you have specialized personnel working for your company.

-Converts fixed costs into variable costs.

-Outsourcing can help optimize processes.

 

DISADVANTAGES OF OUTSOURCING

-You have to manage the supplier company responsible for the outsourced tasks. At the beginning it can be a challenge.

-Redundancies in processes can be created. It is necessary to analyze what and how the tasks are outsourced.