Today, many organizations outsource major parts of their operations. Be it accounting, logistics, or customer service, outsourcing is more than just a trend, leaving time for the company to focus on its core business and maintain their competitiveness. Outsourcing isn't always the perfect solution, however, and the benefits must be weighed up against the costs. But by considering these three points, you should be able to determine whether outsourcing is for you.
These days, even medium-sized companies often make use of a variety of external advisors and service partners. However, many have drastically reduced supplier numbers by pooling outsourced tasks to only a few specific but well-connected all-around providers. It makes sense to do so – if everyone is just a tiny bit responsible, nobody ultimately takes responsibility. But, when a small number of providers are responsible for a large amount of the work, then not only is the onus is on them to come up with a solution in face of trouble, but they've also got the possibility to affect a larger portion of the workflow in order to solve the problem.
The first consideration, then: wherever possible, reduce complexity. Simple structures, clear responsibilities, short distances. This is how an organization can respond to problems quickly and effectively.
What about the savings that outsourcing promises? Well, it might not be a straightforward benefit, as some have found – for example, outsourcing the full production process to Asian manufacturers. Beyond risking an ability to maintain quality control, the time factor can often be underestimated. Shipping does go quickly, but it isn't overnight. In the time it takes a cargo container to reach Europe by sea or land, products can sometimes wind up obsolete. When it comes to a crunch time, organizations may resort to air freight, but this is costly.
So, the second consideration: make sure you're considering the big picture, including manufacturing costs, quality control factors, transfer of knowledge, and the cost of time. Otherwise, a seemingly cheap solution might become very expensive very quickly.
Have you ever needed to contact your production team on a Saturday? The advantages of in-house production here are obvious: they're your employees, and you know how to contact them even outside regular working hours. Can your external service provider do the same?
The final consideration, then: always evaluate your service provider's ability to perform, especially regarding communication. At eWriters, we know how important this is, so we have the necessary resources to be available to our clients around the clock. Emails are answered in a matter of hours. Most importantly, the client always receives an answer that addresses their concerns appropriately – form or stock answers are a quick way to lose your customer's trust.
So, next time you face a decision on outsourcing, consider these three points. If the benefits outweigh the costs, the outsourcing can most certainly pay off.
Sample Article
© eWriters
