Outsourcing, How do you make 1+1=3
The pace of change has never been so fast, with all businesses, markets and sectors being challenged by where to invest to grow, skills shortages, new entrants and margin erosion. The need to partner and have a flexible cost, skills and asset base has never been greater, however if you believed the headlines about ‘Outsourcing’ you might take the view, is this model outdated and time for a change…
With so many clear benefits of Outsourcing should the debate not be about how to make Outsourcing a success and why Outsourcers are in the main seen as Suppliers rather than Partners….
Is the term Outsourcing in itself the issue? Should in future the objective be ‘Smart Sourcing’ where Clients identify partners that bring investment in assets that deliver value and agility in a world where the pace of change demands the need to compete with new entrants and start ups that are disrupting their markets.
The benefits of Outsourcing are clear if done well:
- Business Focus: Businesses can focus on their core service offering and outsource tasks that require Insight, assets, channels and talent that are not core to their business
- Efficiency: Leveraging an existing infrastructure of an Outsource business will deliver efficiency and best practice, therefore taking Clients through the experience curve much faster
- Flexibility: Clients can flex Talent, Data and IT resources without the internal cost and process constraints
- Speed: The pace of change is relentless, Outsourcing with a partner that has invested in Technology and Talent systems that designed to deliver at pace and integrate with current processes gives Clients a competitive advantage
- Talent Pipeline: Outsourcing with a partner that designs Talent systems that align with Clients competencies and values delivers a constant pipeline of future Talent
- Insight: Data and Intelligence can deliver a key competitive advantage, Outsourcing to a partner that invests in how to use data to maximise ROI will ensure that resources are deployed to maximise return
- Expertise that keeps Clients ahead: By Outsourcing a task that is core to an Outsourcer that is committed to investing in their asset base will ensure that the Service offering will remain future proofed and allow Clients to focus their investment on growing the Core business
- Test and Learn: To grow there is always a need to invest in opportunities that are not delivering revenue currently, Outsourcing allows the flexibility to ‘Test and Learn’ without the distraction of current teams delivering in the core markets
So if the argument to ‘Smart Source’ is clear, how do you make this your competitive advantage? The truth is as ever with every partnership both parties have to play their part and work hard at the relationship, however the sentiment has to move from Supplier to Partner!
So, how do you make 1+1=3:
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