Finding Better Ways of Doing Business? Outsource!

  • June 24, 2011
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By: Roy Jonathan del Rosario

Does your internal business process seem so sluggish? Does your workers lack expertise with the tasks they are asked to perform? This might be the time for you to outsource! But do you know what that means? It is evident in the present day living that technology is becoming more and more highly advanced and the economy as well, is becoming exceptionally globalized as seen with the great occupation of transnational firms on our local market.

Economic globalization. Technology Advancement. Highly exceptional customer care services. We have named it all. These are the raw factors that have significantly boosted competition in nearly all markets locally and internationally. This of course has been the catalyst for basic change on how businesses view their sourcing tactics and has pushed them to seek for better ways to be more competitive with their undertakings. Outsourcing gives opportunity by helping companies to set eyes to the value chain for high leverage areas and helps them to better use their resources to engage with these areas.

Outsourcing helps achieve combative benefit by focusing on core competencies. Outsourcing non-core tasks, which internal employees have less knowledge with it than outourcers who possess expertise with certain fields, gives opportunity to the companies to: better utilize internal resources, expand responsiveness to client needs, diminish fiscal risks by capital investments reduction and boil down product cycle times.
Like any other businesses where we can’t control it, Outsourcing has risks as well. Companies could lose skills and expertise; they could also lose control of the tasks being performed by the outsourcing companies; lacking of confidentiality since many important and sometimes confidntial accounts are being passed to the outsourcing companies for some purposes; and companies are unable to monitor costs.

Not all these risks are preventable but some can be minimized. Among these include: selecting partners carefully, clarifying goals and expectations from the outset, securing a confidentiality agreement, developing strong partnership with supplier, simplifying the interface between the two organizations, and focusing communications.

The impact of outsourcing can extend beyond cost reduction to include enhanced quality and service based on partnerships with best-in-class suppliers.


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