A company can implement various options to improve its competitive position in the market. Innovative process development, new business project and innovative technology are solutions that can be deployed in-house. To these, we can add outsourcing and its many benefits, including the possibility of repositioning the company, renovating its activities, and quickly implementing projects while making savings. How can you turn outsourcing into a tool for your company’s competitiveness, regardless of your firm’s size or its core business?
Outsourcing is the concept when a company decides to outsource, entrust the responsibility of, one or more of its services to a third-party, a specialised company that is often located abroad, such as in Mauritius. In the collective mind, outsourcing aims to “rid” companies of tasks that are too time-consuming and that demand too much energy and human and financial resources but which must be completed with a new perspective/outlook. Today, it allows employees to participate actively in the development of the company by focusing on the core business of their employer, whatever it may be, without having to manage parasitic tasks.
Outsourcing companies are indeed experts and they are equipped with the necessary human and material resources to support one or more services, such as human resources, satisfaction surveys to assess the quality of your services, remote secretary services or even telemarketing.
Why do companies choose to outsource?
According to a recently published study by an offshore outsourcing specialist, 35% of companies are turning to outsourcing for benefits related to costs. 25 % of them justify the adoption of this solution to overcome the shortage of local skills. Finally, 22 % were won over by the flexibility that comes naturally with outsourcing while 18% are motivated by its time saving capabilities.
As such, it is no secret that outsourcing has many advantages, the most important one being to give firm the ability to focus on their core business. Through time savings and savings on operating and wage costs, it gives managers the time needed to focus on the strategic aspects essential for business development.
Thanks to this, the company becomes more responsive and flexible as its forces no longer have to manage time-consuming tasks with little added value.
Good to know
People tend to confuse the concepts of outsourcing and subcontracting despite the fact that these are two different ideas altogether.
In the context of subcontracting, a main contractor will contact a subcontractor first and foremost to increase its revenues while reducing its operating costs and taking a leading position in the market. For this, the subcontractor will perform a sub-work task while the sponsoring company will direct the entire operation.
Why does outsourcing have a bright future ahead?
Outsourcing is a relevant and apt decision for any company wishing to improve and to increase its competitiveness in the market. As such, more and more companies are selecting this option and are choosing solutions that go beyond their borders. There are many reasons behind this. These are:
The providers have succeeded in helping their customers effectively to develop their products in a qualitative and professional environment. To do this, they are constantly working to develop and master a core set of skills that enable to meet the many challenges while offering a wider range of services.
If companies fall behind on technological advances and innovations, the providers are always up-to-date! Whether it is regarding equipment, training, quality, best practices in general, outsourcing companies are always up-to-date.
Specialised service providers are able to make the necessary investments to be at the forefront of technology, even in the face of shorter time-to-market and product life cycles. By outsourcing one or more services, client companies will be able to benefit from these competitive advantages!
Why is outsourcing an ally of enterprise competitiveness?
Each company will decide to outsource according to its needs and objectives, so the benefits will be different:
- Outsourcing offers companies a way to break free of market competition by hiring a service provider, but more importantly a partner, with the expertise and capabilities needed to bring innovations to the market quickly
- The presence of an experienced supplier will encourage companies to enter and execute new markets quickly
- By no longer having to invest funds from non-critical services, businesses can grow thanks to a reduced financial burden and therefore can respond opportunistically to new markets
- Finally, outsourcing allow businesses to focus on key skills and create skills that directly add value to customers.
On the road to outsourcing!
Outsourcing has an infinite range of direct and indirect benefits. It allows companies to develop a powerful relationship with their suppliers, through a collaboration based on innovation and development.
In view of the considerable advantages, outsourcing, of any kind, has over time become a strategic, even transformative, asset. By becoming a powerful tool for the concentration on activities, for the effective management of its workforce and generating ever greater value, outsourcing rhymes with innovation, advantages and expansion, but above all with competitiveness. By entrusting certain processes to an outsourcing company, you make the winning choice for your entire organisation.