How to think strategically about outsourcing?

(Source of this article: https://www.imeche.org/news/news-article/how-a-strategic-approach-to-outsourcing-can-build-process-resilience)

Outsourcing is no longer just a way to reduce non-essential costs for the company. Today, the real challenge of outsourcing is for it be used as a tool capable of creating strategic value, transforming the company and even fundamentally changing the dynamics of the sector. The key is to forget what you think you know about outsourcing.

Outsourcing has changed its face in recent years

Once considered a simple cost-cutting technique by offshoring low-value-added functions, such as payroll and IT, outsourcing had no brilliance. It was never considered a strategic or revolutionary movement within the company. In the early 90s, the perception of this practice began to change, as companies began to outsource more strategically important functions, such as manufacturing and logistics, product design and other innovation-related activities. Suddenly, outsourcing has turned into an essential management tool.

Nevertheless, companies had to deal with an unattractive, or even very discouraging, flip side of the coin. In theory, it was pretty simple to set up, but outsourcing was actually much more complex to put in place. Another serious issue, it often struggled to keep its promises. Therefore, companies do not outsource the right processes, choose this solution for the wrong reasons and do not benefit from sufficiently qualitative support to achieve concrete results.

However, outsourcing is currently one of the best strategies to implement. Its status as a solid and reliable tool has not changed and to take full advantage of it, it is imperative for companies to shed the image they have of it.

By choosing outsourcing, the company finally gives its managers the necessary time and latitudes so that they can finally focus on more strategic tasks with higher added value.

It also needs to build and maintain a longer-term vision and innovate by implementing measures that have results at the enterprise level, such as a better return on investment or a better return for shareholders, as explained by Jane Linder, research associate and associate director of the Institute for Strategic Change at Accenture in Cambridge, Massachusetts. She adds that “In general, this means that outsourcing must be focused on external results – for example, repositioning itself on the market or changing its value proposition to customers, rather than using outsourcing to save 5% on the cost of an internal administrative process”.

In other words, outsourcing, when entrusted to a company that truly knows its business, is transparent in all aspects, is capable of generating strategic value and it is well used, it can transform companies and fundamentally change the dynamics of the sector.

Outsourcing is no longer synonymous with offshoring, but a major step forward for the company and the teams that participate in its development every day.

Reduce costs and add value

When used appropriately, outsourcing continues to go beyond the background functions and embellish the strategic services of the company. To achieve such a result, the company should not turn to a provider offering the lowest prices, but to suppliers that have proven themselves. At ProContact, we offer a wide range of services, to be adopted according to the needs of your company and your human capital:

• Telephone reception
• Remote secretary services
• Surveys, researches, satisfaction surveys
• Remote marketing and teleprospecting (making appointments, prospecting …)
• File classification
• Database management and enrichment
• Customer loyalty
• Technical support (hotline, webhelp, technical support)
• After-sales service (after-sales service), customer service
• B2B/ B2C Prospecting
• Remote secretary
• Customer relations
• CRM tool and CRM software
• Satisfaction surveys
• Human resources
• Digital outsourcing

Outsourcing is a catalyst for change

“Companies are not very good at change”, says Jane Linder. “Whether it’s changing their business model, implementing innovations or reengineering, it’s hard work and people don’t get everything they expect”.

However, some forward-thinking leaders are beginning to understand that outsourcing is a change management tool capable of leading to a major transformation at the company level: competitive positioning, increasing market share or share price. According to Jane Linder: “Companies have tended to use mergers and acquisitions to get into new industries and change the boundaries of what they were doing. This is a very blunt instrument and difficult to use correctly. With outsourcing, you get a finer tip on your pencil”.

This is called transformational outsourcing, which is capable of going outside to look for the missing piece essential to the company, relying on the expertise of a partner who can be operational from the start. Often faster and more efficient than major internal changes, such as acquisitions or large movements, outsourcing can become a precise and reliable instrument.

Contact us!

Outsourcing is our business! At ProContact, we closely accompany you in the inclusion of this solution in your business strategy. We offer you, without delay, an unprecedented adaptation of your way of working thanks to the arrival of resources located elsewhere, without wasting time, money and quality.

ProContact is more than a contact centre. Thanks to trained, qualified, handpicked and multilingual agents, we allow companies that choose us to gain credibility and above all to satisfy their customers regardless of the situation and in complete transparency.

Outsourcing has become a tangible and concrete business strategy for the development of the company. To find out more about our services or for a quality partnership, click on our contact form, send us an e-mail or call us on (+33) 1 77 75 04 50.