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Marketing and Outsourcing Combination |
| Offered at its Best for Maximum Profits |
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| :: Outsourcing Mantra |
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Outsourcing is a wonderful option when you want to concentrate on your core business and the business of any business is to increase sales and reduce operating cost without compromising on quality. |
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"We've been able to grow as a company and take on bigger pieces of work over time because we have been able to outsource," says Becky, our CFO, 42, and it was then we found the need of many, rather thousands of businesses who want to outsource and. and reduce the operating cost, the core theme was non wanted to compromise on quality, this is where the crucial understanding of OUTSOURCING MANTRA comes in place and you increase customer satisfaction and increase sales and revenues both.
These days, the mantra is to outsource as much as possible so you can focus on the core business. For growing companies, "it's not a question of deciding [whether to] outsource this or outsource that. It's a question of can I outsource this," says Bruce Judson, a senior faculty fellow at the Yale School of Management and author of Go It Alone! The Secret to Building a Successful Business on Your Own, which advocates "extreme outsourcing"--outsourcing everything but your core competencies--as the key to success as an entrepreneur today. "Every month, you should be saying, 'Are we at scale, or are there new systems and services that allow us to outsource this function?" |
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Businesses with fewer than 100 employees comprised 10.4 percent of the total U.S. business-process outsourcing (BPO) market in 2005, according to research and consulting firm Gartner Inc. Financial and accounting services are the top area small companies either outsource or have plans to outsource in 2007 and onwards. HR--in particular, payroll and 401(k) administration--comes in a close second. The small-business BPO market "is definitely growing," says Robert H. Brown, a Gartner analyst who researches the small and midsize business outsourcing market. |
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| Are You In or Out? |
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Deciding what's best to outsource can be a challenge, however, especially when entrepreneurs can mistakenly outsource functions that simply require better delegation, communication or technology. "Often, it's an information problem, and by outsourcing it, you complicate the problem," says Timothy Ferriss, guest lecturer of entrepreneurship at Princeton University and co-founder of 5-year-old Adaptagenix Applied Biosciences, a San Jose, California, sports training and nutrition company with $1.2 million in 2006 projected sales. "Before you outsource, determine that you need to in the first place."
If outsourcing seems in order, take care of some of the crucial points, discuss in your core-team meeting, and try it out, it is the mantra today to reduce costs that can be reduced and outsource, the issue of whether to do it ONSHORE or OFFSHORE is a secondary discussion, but focusing on what you do the best is the core issue and you get more time to look at that, if you outsource. |
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| Gartner's four-step decision-making model for outsourcing includes: |
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Assessing your strategic priority and risk tolerance for outsourcing |
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Checking the local marketplace for outsourcing firms willing to work with you |
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Deciding which tasks you're most comfortable performing in-house and how much of a task you're comfortable outsourcing (for example, will you outsource all of HR, or just payroll, training or background checking?) |
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Finally, running a cost analysis. If you're spending half your time doing HR-related tasks, for example, you can estimate the time and salary you spend on it annually, then add in any investments in HR and payroll software. The resulting number is an estimate of what the HR task costs to keep in-house-numbers you can compare to the cost of outsourcing it. "For a lot of small businesses, their measure of success [with outsourcing] is sort of a gut feel," Brown says. Failing to measure the overall cost is "a fairly risky thing to do because you don't have an actual measure to figure out, once you outsource, how effective the outsourcing provider has been." |
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Surprisingly all such functions are done ONSHORE and OFFSHORE as well and doing it OFFSHORE with the right partners save a lot of money for the large, medium or small business, Dell, IBM, Microsoft and many more are the best examples on the top bracket, who can afford everything to be done ONSHORE but have gone OFFSHORE as they get the same quality and save a lot of costs |
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Ultimately, deciding what's best to outsource depends on your comfort level and whether outsourcing will allow you to focus on boosting your bottom line. "It enables me to keep my overhead costs in check, which enables us to provide fair value to our clients," Cohn says. This mind-set is catching on: Gartner predicts the small-business BPO market will grow from $6.2 billion in 2006 to $8.1 billion by 2009 |
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