What is happening in the outsourcing of light fleet segment in Brazil?

The segment Outsourcing corporate fleet in Brazil is booming. Compared to more developed markets and more adherent to the concept of outsourcing, we have a huge potential for growth and it is attracting many international companies and messing with the national.

Without a doubt, the segment of corporate fleet outsourcing is on the rise. Compared with most developed and adhered to the concept of outsourcing markets, Brazil has a huge growth potential.

It is estimated that corporate fleet of Brazil today is 5 million vehicles and of these, only 7% are outsourced. When compared with England where the percentage is 47% and the Netherlands with 58% of outsourced vehicles, saw the huge potential for growth.

This potential, coupled with the very development of Brazil as a country is attracting interest from international companies who are entering for the first time or seeking to strengthen its presence in Brazil and also a great race to win market share from national incumbents.

In Brazil, there are 10 large companies with a total outsourced fleet estimated at 170 thousand vehicles and other minors who have a combined fleet of 110,000 vehicles. Ie only 50% of outsourced corporate fleet with these 10 are larger, while the other 50% are sprayed with minors.

In the United States where the market is more consolidated, 93% of outsourced fleet are with the 4 largest business segment and 7% other. With this as background and analyzing what happened to other segments such as banks, for example, we can assume that many of today’s companies will cease to exist, either by inability to compete with larger or to be incorporated by other.

However, before such a scenario, it is important for fleet managers, contractors of outsourcing services, know separate the “wheat from the chaff” and realize the growth strategies of these companies and what are the possible impacts on future decisions taken now.

I believe that today there are companies who are seeking portfolio growth at all costs in order to be rewarded with a possible bid in the medium term and therefore live a good time, but not sustainable in the long term. Are opportunistic companies focused on generating portfolio.

Other companies that are better structured and enjoy a certain hegemony of the market are doing little to fit the needs of market evolution. Those that believe they have many advantages over their competitors that have become slow to look at the market and see what it really needs are.

And others that are structuring increasingly in search of elevating the perception by the market as the quality of services and differentiated solutions that effectively contribute to efficient management. Those in the near future will be highlighted and will have a more sustainable business are.

Anyway, there is no “free lunch” and many times the initial cost is expensive in the supposed evolution. Fleet outsourcing assumes a long-term relationship, where exit midway can cost dearly and be well draining.

For this reason, it is important that managers continue seeking competitive prices (in Brazil this is still the main driver of outsourcing), but has not exclusively this variable as a basis for decision. Try to understand better what are the future expectations of the service provider what is being done to evolution of the solutions offered, who are the people involved in the management, among other indicators.

Be assured that good business has to be good for all parties and outsourcing can not be different. If it’s too good to one side, something strange!

Source: www.administradores.com.br

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