Why Outsource?

 

I can think of a lot of good reasons to outsource. Here is a list of my top six reasons. If you add one we’ll have seven!

Seven

Expertise: Outsourcing lets you acquire specialized expertise to accomplish goals, complete projects and augment your existing resources. Popular projects to outsource are social media tasks, such as blogging, search engine optimization, and specialized training or coaching, such as presentation skills or facilitation.

 

Flexibility: Small projects that require unusual expertise such as website design, sales training and video production are prime targets for outsourcing. Large projects that require organizational change and an outside perspective, such as institutionalizing Six Sigma or Strategic Pricing, are also excellent projects to outsource. The key is outsourcing lets you complete the work or meet your goal without disrupting day-to-day operations and personnel.

 

Economics: Outsourcing is a variable cost option since no full-time employees are added. Variable costs projects are typically easier to get approved than additional headcount. In addition, since outsourcing is a global industry acquiring world-class talent is often much less expensive than acquiring the same talent locally.

Accountability: Outsourced resources do not suffer from goal diffusion or from being distracted by common day-to-day fire-drills. An outside provider of resources has one responsibility and one priority, which is to complete the project. Focus delivers better results and greater accountability.

 

Speed: Much has been written about speed being a differentiator between good companies and truly great companies. Outside providers can often bring in several people, or even several dozen, to complete a project or task in days, as compared to the months it often takes to acquire fill-time expertise. Few companies can diffuse their existing resources without affecting day-to-day operations.

 

Technology: Few companies can afford the money to purchase or the time it takes to learn the latest technologies in every area of operation – sales, marketing, IT, logistics, etc. Outsourcing allows you to rent the technology you need from the best provider for as long as you need it and no longer.

  6 comments for “Why Outsource?

  1. December 28, 2009 at 9:23 am

    Outsourcing works really well for non-core functions that don’t add a lot of value to your companies expertise.

  2. December 28, 2009 at 10:00 am

    Jarie, I agree and probably should have added that a separate point: “Outsourcing allows you to focus on your core competencies.”
    Thanks!

  3. December 28, 2009 at 10:58 am

    Outsourcing technology falls under cloud computing, which is an emerging field. Allocating technology outside your office can save you time and money from hiring an IT staff. This is really beneficial for smaller companies and startups who don’t have to worry about keeping servers in house and maintaining them internally. Making processes web based allows employees to access information and their desktops from anywhere in the world. Ex. salesforce.com vs an internal CRM software.

  4. December 28, 2009 at 11:00 am

    Steve,

    You have a good list here. Here’s another reason: It is sometimes advantageous to obtain an outsider’s perspective on things. For instance, when you are part of an organization you may not be aware of how your communications are perceived by an external audience. When you outsource, the discovery part of a project can uncover surprises in (mis)understanding.

    Also, brainstorming with people from outside your organization helps faciliate fresh ideas that may not have come from a group of company insiders.

  5. December 28, 2009 at 11:08 am

    Excellent points, Deni…Why am I not surprised?

    Vaynerchuk interview opened up new opportunities last week. Should know more in a few weeks.

  6. December 28, 2009 at 11:18 am

    I agree completely. In my experience, however, few IT department heads think outsourcing any aspect of IT is a good idea. They tend to be very risk-averse since the penalties for downtime are so severe. The debate between what stays in-house and what gets outsourced is a serious one.

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