OUTSOURCING STRATEGY - SOME IMPORTANT FACTORS
Outsourcing is fast becoming the next best thing after sliced bread in the global workplace. If applied correctly, your business can reap many rewards such as cost saving, increased production, unlimited expansion and improved competitiveness. However, the down side, if you have not devised a detailed outsourcing strategy, you might be looking at financial ruin and more importantly, a tainted business reputation.
A successful outsourcing strategy relies on a few basic components
1.SWOT ANALYSIS is a term which encompasses four elements of strategizing. Strengths, weaknesses, opportunities and threats. Strengths and weaknesses would be detailing your internal resources while opportunities and threats will be listing your external factors of consideration. Combined, your internal and external factors should give you a clear indication of your stance within the competitive market. A simple matrix can be drawn up to protect your company whilst exploiting the possibilities available.
2.PRIORITIZATION would be your next step in drawing up an outsourcing strategy. Decide what is important to the development and growth of your company, compare those points with where you find yourself at the present moment, and finally, have a realistic plan in place on how to build a bridge between these two points. Set out a cleat time line and stick to it.
3.CASE STUDIES can help you ascertain more information as to how the markets interact, where trends are at currently and what you can learn from other’s past experiences.
4.COST ANALYSIS will ensure that you are aware of any potential advantages and all possible draw backs. Research will reward you with the ability to draw a comparison between your current lay out and what you can expect to save, if indeed at all. You can also look into how outsourcing can result in you being able to lower the cost of your service or product to the consumer whilst increasing your income.
5.RISK FACTORS should be looked at in a very analytical and frank manner. Potential risk factors can mean your downfall, so be very realistic and thorough.
6.DESK RESEARCH is extremely important in developing your outsourcing strategy. Desk research involves you doing research or data accumulation from secondary sources. These could include government publications, private sector publications, industry magazines and newspapers, internet sources and professional citations. Once you have developed your outsourcing strategy on paper, implemented the suggested factors and are satisfied with your results, hand it over to your top staff for further inspection and dissection. Have as much input from as many different sources as possible. This is the only way in which overlooked points will be brought to your attention and will benefit you in your final strategy.
Once you are fully immersed in the outsourcing game, you might want to review your outsourcing strategy every now and again. By continued review, you ensure that you are still heading in the right direction and you can implement new strategies to buffer any market changes and fluctuations.