Reduce Overheads, Mobilize/Free-Up Resources, Avoid/Reduce capital expenditure, Improve Efficiency, Improve Speed of Service, Get access to Specialized Skills, Avoid the cost of Chasing Technology etcetera etcetera...

Wait, this is not a promo of a brand or company. I am just selling an idea…”spread your wings and fly higher… with Strategic Outsourcing“.

Have you spent days with a management or technical aspect, that is slowing you down? Has it occurred to you that a prospective partner somewhere, might already have a ready solution available!!

Lets discuss just two cases of outsourcing –

A small business, seeking a provider with proven records.

It’s quite difficult to get the right mix of people, practices, process, and above all, technology to build a product/service. Also, how often does one build something from scratch, without committing mistakes and at least a few bad investments?

If you manage to find the best partner for your specific need(s) at the right time, outsourcing/partnerships will enable your organization to save money, increase growth and put your limited resources to the very best use.

A big business, seeking specialized expertise, and/or resources(mostly HR).

Strategic alliances help you focus on core competencies, giving access to expertise/specialization, newer technologies and even higher speed of delivery.

In a bigger company, the capital, the necessary product development, the manufacturing/designing, and marketing capabilities etc. would already be present. Such organizations should be selecting a vendor who brings value to the core business, rather than one that can provide you with the lowest prices.

Few relationships that could be built around the core business operations are represented below:

Outsourcing Customer management		Research and Strategic Partnership
	Core Business
Teaming up with suppliers and customers		Integration and Automation

Outsourcing customer management:

You’ll be able to solve your customer’s problems faster with larger members in customer service. You would very well learn novel/leaner ways to improve your customer service from your partners.

Alliances in strategic planning and research(consultants) :

Re-inventing the Wheel is never going to help. Moreover, in today’s age, it’s hard to keep up with emerging technologies. It is here that you need the help of a partner, so that you could still leverage their expertise to reap benefits of emerging trends and technologies,while focusing on your core business.

Few key points to keep in mind while deciding a partner/provider :

How much overhead you still have, in managing people working for you.
Their readiness to learn your systems in and out, and the the gap in the work culture.
Since its all people, make sure you aren’t hiring a sweat-shop.
The expertise, goodwill and stability of the partner.
Methods to safeguard your intellectual property rights.

Integration and automation(tools):

Integration of multiple processes involved in your key business area, usually enhances productivity. Many a times a third party audit of your business processes gives you newer dimensions, and areas to improve.

The role of automation tools is very large, as it paves way for tremendous increase in efficiency. The level of automation can vary for each business, still it always imparts higher ROI in the long run.

Teaming up with suppliers and customer partnerships :

The whole idea is to go one step further than delighting your customers. The partnership is the easiest way to build loyalty. Well, one should remember that it is not easy to get thus far in customer relationships.

These days requirements change rapidly, and so does the market. If you have strong relations with customers, you get to know their varying needs. Many a times this leads to highly stable products, since you know when exactly to stop, and when to move on. When you are dealing with a supplier(partner), your needs get the much needed priority, and hence you get the best out of the relationship.

About the Author :

Sankar works as a Senior Software Engineer in Bobcares. He joined Bobcares back in April 2006. He loves grooming/mentoring people. During his free time, he listens to music, and enjoys singing..