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THE FUTURE OF OUTSOURCING - DOES IT MAKE SENSE?

admin 31-08-2017, 11:20 120 Information
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THE FUTURE OF OUTSOURCING - DOES IT MAKE SENSE?

 

This is a complex topic – and the history of outsourcing has largely slipped under the radar as the significant paradigm shift away from conventional business models has been somewhat insidious.

Outsourcing is not new; it has been an almost invisible common practice since the Industrial Revolution. In manufacturing, very few companies could tool up and skill up to manufacture every single component required to build a ship, a car, or an aircraft without incurring huge costs.

Within my lifetime, ‘Outsource Creep’ has been a progression of usually financially driven board room decisions to maintain a competitive advantage, to engage specialists who have the capability to perform tasks cost effectively, and efficiently.

Today, the traditional Business Model as we know it (or perceive it to be) is transitioning to a vastly different business model, and I often wonder where the boundaries are because they have not yet been pushed to the limits that I expect to emerge over the next several decades in my opinion.

So let’s put some perspective into this post to try to make some sense of it all.

With many broad variables, many companies today outsource those that were once traditional in house functions such as:

  • IT, SEO

  • Telemarketing

  • HR & Payroll

  • Marketing & Advertising including social media management

  • Vehicle and machinery requirements and maintenance

  • Warehousing, logistics & distribution

  • Accountancy and related services

  • Training

  • Other??

So what’s left to be outsourced? Think about the impact of outsourcing from another angle – you need less office space, you can minimize in house headcount and associated costs, reduce the costs associated with utilities and communications, let others carry their share of the risk in your quest to increase market share and accelerate revenue growth. And all seamlessly to your clients and prospective clients.

Virtual companies working from virtual offices are a reality today as we all know.

So now that I have got you thinking, share your thoughts as to how ‘Outsource Creep’ has impacted on your own business or workplace, and I wonder what the business landscape will look like in 20 years?

Rick

ossaustralia.com


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