Outsourcing has by and large been an important facet of businesses seeking to expand and grow their share of the market.
Dr. Robert Hadfield, a leading expert on supply chain management, observed that “to increase their flexibility and creativity, many large companies developed a new strategy of focusing on their core business, which required identifying critical processes and deciding which could be outsourced.”
In fact, many organizations have harnessed the unique benefits of outsourcing certain aspects of their businesses in order for them to focus on their core competencies – functions that allow their business to earn more profit.
If you are on the ledge and are still unsure if your company is ready to take advantage of outsourcing and its benefits then ponder these three things before making that jump.
First: consider the nature of your business. Have you found your niche in the industry? Will you outsource a core function of your business? Most professionals recommend that businesses outsource non-core processes to their outsourcing partner. This could include accompanying but nonetheless essential service functions such as accounting, human resources, and data processing, among many others. This will allow your business to focus on growing your main competencies, thus leading to strengthened market performance.
Second: consider the value-for-money proposition. In order to meet specialization requirements, businesses may consider having employees undergo training to be able to excel in their tasks. Is skills training an effective method of introducing improvements into your business process? Given the often exorbitant cost of training, will it provide actual value for its cost? Which will be more profitable in the long run, growing these non-core competencies within your organization or relying on the expertise of outsourcing companies so you can focus on developing company’s strengths?
Lastly: consider your willingness to form strategic partnerships. In today’s highly competitive world, your ability to form strategic partnerships with other businesses, particularly outsourcing companies, will play a huge role in the success of your business. “The focus today is less on ownership and more on developing strategic partnerships to bring about enhanced results. Consequently, organizations are likely to select outsourcing more on the basis of who can deliver more effective results for a specific function than on whether the function is core or commodity,” says Dr. Hadfield.
Taking time consider these factors will come in handy when making the decision about harnessing the advantages of outsourcing to grow your business.