Outsourcing: The New Growth Strategy
On the increase.
Sensing the value, companies are planning to increase the number of services they outsource. By how much?
Effective, efficient, and just good business. Outsourcing is no longer a dirty word, but a way for companies to focus on their core competencies, not get bogged down in the things they’re not experts at. It’s gotten an unfair rap due to the association with outsourcing American jobs overseas, but that’s all. The reality is, more mid-sized and large companies than ever are planning to increase the services they outsource.
Part 1: Why Outsourcing is increasing
The workplace is changing. Why shouldn't the way we work?
The ramifications of an increasingly mobile workforce have made it unnecessary to even be in the same building (or country) as a person you once sat next to. Outsourcing has been around since the ‘70s, but what was once a cost-saving tactic has now become a main topic of conversation among the C-suite as a strategy for growth.
Business Process Outsourcing is key to that decision-making. It’s the kind of outsourcing that focuses on contracting the operations and responsibilities of a certain business function or process to a third party. A 2014 Deloitte study noted that 66% of respondents want access to the thinking and expertise third-party companies provide, which their own company often lacks due to resource and cost constraints.
Part 2. Why Outsource?
What's in it for you?
It’s financially sound. Cost reduction is the name of the game and the main reason companies outsource. And why not? Access to great thinkers who don’t cost an arm and a leg makes total sense. In fact, 79% of respondents* say they don’t believe their service providers are too costly.
Smoother operations. Technology has made it easier for competitors to show up on your turf, winning market shares by any means necessary. Which means you have to be smarter with your resources. Access to vendors whose expertise surpasses your own allows you to let go of the small things and focus on the big picture.
New perspectives. Third parties are often free from internal politics, so they can not only identify the issues plaguing your business but offer real solutions and suggestions. They’re often straight-shooters, which can be very refreshing – and sometimes game-changing.
Part 3. What Else Can Be Outsourced?
Good news. Your furniture can now be outsourced, too.
How to turn a fixed cost into a flexible asset. The financial flexibility you get by renting furniture is significant compared to buying – it eliminates a significant upfront expense and eliminates ongoing storage costs. By outsourcing your furniture needs, you free up cash reserves that can be utilized elsewhere, like investing in new opportunities, for instance.
Why worry? From an operations standpoint, not having to worry about furnishing a temporary office with permanent furniture you might otherwise be stuck with reduces your risk. Best of all, no depreciating assets to maintain. No outdated styles. And all kinds of opportunity to change the layout of your space to be more open, more collaborative or more private, if that’s what your office needs.
Power to your people. More and more people are working remotely, freelancing or they’re on flex schedules. Who comes to work every day, where they sit and how they choose to work while at the office are all becoming more and more up to the employees, not their organization. And faced with that kind of reality, you need a partner to help you through it.