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Home FEATURED

Outsourcing: Redefining Processes in the Automotive and Logistics Industries

Outsourcing allows companies to focus on their core strategic objectives and reduce costs.

T21 Media by T21 Media
24 July, 2025
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In an increasingly competitive global environment, the automotive and logistics industries face significant challenges, from tariffs imposed by key markets such as the United States to the need to optimize costs and operations .

In this context, business process outsourcing (BPO) , also known as business process outsourcing , is emerging as a strategy to reduce risks, increase efficiency and maintain competitiveness, according to Luis Soto, Business Development Manager at Kelly Mexico , in an interview with T21.

According to the specialist, business process outsourcing is not a new concept, as it has been implemented in markets like the United States for 30 years. In Mexico, following the 2021 labor reform that prohibited personnel subcontracting, outsourcing has been redefined as the outsourcing of specific activities other than the company’s core business.

In the automotive sector , he indicated, various areas can be outsourced, such as quality control, automation, legal, technology, accounting, human resources, and logistics, the latter in the area of some distribution points and warehouses.

According to Deloitte , a firm that offers auditing, consulting, and financial advisory services, 59% of global automotive companies have increased the outsourcing of logistics and support processes to reduce operating costs by an average of 20% to 40%.

Soto emphasized that outsourcing activities in this sector allows companies to focus on their core strategies, such as vehicle design and production, while delegating secondary processes to specialists , thereby reducing costs and ensuring regulatory compliance.

“At Kelly, we’ve been here for four years now, since the reform, and we’ve focused heavily on the automotive sector, primarily supporting them with automation and bringing in much more experienced talent. We’re also working on cost reduction, taking their entire recruitment processes to the point of delivering the file to companies so they can hire them directly,” he explained.

In the automotive logistics sector , outsourcing encompasses warehouse management, the inflow and outflow of spare parts and auto parts, and distribution.

According to Soto, Kelly monitors merchandise, uses systems like SAP for inventory control, and delivers directly to production lines, ensuring smooth operations and reducing errors, even in small and medium-sized businesses (SMEs), which are also adopting this practice to delegate areas like accounting, payroll, and technical support, allowing them to focus on attracting customers and growing.

65% of automotive companies that outsource logistics processes have shown a 30% improvement in the efficiency of their supply chains , according to a study by Gartner , a consulting firm.

Outsourcing in logistics

In the logistics sector, one example is warehouse management , which handles everything from loss control to inventory placement and preparation for seasonal peaks, Soto said.

“We control incoming and outgoing orders, we monitor inventory, waste, and quality control. We manage all warehouse and placement processes in all distribution centers,” he explained, referring to one of his clients, whose name he withheld for confidentiality reasons.

This comprehensive approach allows companies to respond to market demands, especially during busy seasons such as the holiday season or discount campaigns.

Flexibility, a key factor in outsourcing

Outsourcing also offers the flexibility to adapt to external changes , such as tariffs imposed by the United States. By delegating processes to specialized providers, companies can scale up or down operations, minimizing the financial impact.

Luis Soto emphasized that this flexibility allows companies to contract services for specific periods , adjusting to economic uncertainty without compromising their internal structure. Furthermore, this practice helps eliminate expenses associated with employee turnover , such as training and onboarding (the process of incorporating new employees ).

According to an analysis by the consulting firm PwC , 63% of companies that outsource processes show an increase in their brand value due to improved service quality and customer experience.

One of the biggest challenges identified by Luis Soto is the lack of awareness about the benefits of outsourcing. Labor reform in Mexico generated negative perceptions about outsourcing, which has required a significant effort to help companies understand its advantages.

Despite this, the adoption of this process is growing rapidly. According to Soto, Kelly has gone from managing 40 projects in 2022 to nearly 120 in 2025, an increase that reflects the acceptance of this model. This increase is not limited to the automotive and logistics industries but also extends to sectors such as manufacturing, technology, and finance, among others.

Moving forward, this process will continue to evolve as a strategic tool to address global challenges, from tariff fluctuations to the need for digitalization and automation, he added.

Process outsourcing is redefining the automotive and logistics industries, offering benefits such as cost reduction, increased efficiency, and operational flexibility. As more companies discover these advantages, outsourcing could become a cornerstone of sustainable growth.

Comment and follow us on X:  @Eliseosfield  /  @GrupoT21

Tags: automotive industryKELLY MEXICOLogisticsLUIS SOTOOutsourcingOUTSOURICING

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índice de Confianza del Transporte y Logística – Cuarto trimestre 2023 10 destinos de exportación de vehículos pesados 2023 Descubre el Top 10 de destinos de exportación de vehículos pesados en México en 2023 La venta de vehículos pesados rompe récord en 2023 5 marcas de camiones más vendidas