Are You an Innie or an Outtie? 6 Reasons to Outsource and 1 Easy Way to Decide What to Outsource

Category: BPO, Increase Profits, Management, Outsourcing, Strategic Planning, Tips & Tricks
Posted by: George Simons on January 30, 2012
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Successful businesses find something they do best, do it better than anyone else, and do a lot of it. That is their core strength, competitive advantage or key differentiator.  –  But in every organization, there are many other things that still need to be done. So how do you keep your primary focus on those necessary elements when all those other “required” ones are devouring your resources?

While each organization requires a unique solution suited to its industry, character, and clientele, there are ways to eliminate, decrease or outsource those extra elements. While this choice may seem daunting, you can determine the optimal model for your business by working with outsource providers like GCS, to provide guidance, options and expertise in finding the best solution for your situation. Successful companies choose the right elements to outsource and find partners who can excel at doing those elements at the quality and value point critical to making it work.

We really see ourselves as collaborators with our clients in those situations where their weakness is our strength… and their gain.

So how do you decide what should be outsourced? Here’s a simple process we often suggest.

  1. Stack rank core business functions, listing the ones most critical to your success at the top.
  2. Rank that same list by the complexity of carrying out those functions.
  3. Draw a line at the place on the list where the core and complex items end.

The third item is a little harder than the first two. First, because insourcing decisions start with the emotional side of business. If an item on the list has you thinking, “this is my baby, I can’t take my eyes off this ball, it’s just too important or too complicated,” than you need to keep that one in-house almost every time. The more complicated, consistent and critical, the more likely it is to stay internal.  For example, a retirement community might outsource lead generation and appointment setting, but would be hard pressed to outsource financial reviews and health care evaluations of potential customers.



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If you are being realistic, somewhere down that list you will be able to draw a line. Everything below that line becomes an option for outsourcing. (If you never found a place to draw a line, let’s talk. We can add some logical insight into the benefits of outsourcing that may quell some of the emotion to the list.)

As you go through the list, keep these outsourcing benefits in mind.

1. Outsourcing Allows for Maintaining Focus on Your Core Business Processes

When you outsource the below the line items, you immediately provide additional focus and resources to those core items that are driving your success.

2. Outsourcing Can Provide Volume and Capacity Control

Outsourced services help maintain the cost and flexibility of demand generated service. This is found in customer service, marketing campaigns, seasonal fluctuations, peak hour fluctuations, etc.

3. Outsourcing Allows Real Cost Control

Pay only for the service when it is needed.

4. Outsourcing to Professional Sales Representatives Increases Wallet Share

Outsource selling skills to sales professionals if your core business services or products lie elsewhere.

5. Outsourcing Companies Provide Process and Product Expertise

Repetitive or simple tasks can be done more efficiently and cost effectively by companies that specialize in such processes. Many of the tasks are similar between companies, so you benefit from sharing the cost of equipment, technology and management skills with other companies. Most importantly, you benefit from the on-going improvements made by numerous inputs to the process.

6. Outsourcing Allows for Long-Term Process Replication

Many companies do not realize the subsets of tasks that can be defined and outsourced.

Once you are comfortable with your items to be outsourced list, you can effectively look for a company to compliment your core skills and make your business better.

We can help you define your list, find quality providers (we don’t pretend to do everything for everybody, but we do know a lot of good BPO firms.) We can suggest domestic, near-shore, off-shore and blended environments. We can review options that include dedicated centers, shared facilities, at-home agents and Build-Operate-Transfer (BOT) centers.

Or visit our website and chat with a marketing specialist today.

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Posted Under: BPO, Increase Profits, Management, Outsourcing, Strategic Planning, Tips & Tricks