Why do successful businesses outsource?
“If you deprive yourself of outsourcing and your competitors do not, you’re putting yourself out of business.” – Lee Kuan Yew, Former Prime Minister of Singapore
Outsourcing dates back to the 18th century
Outsourcing has changed the way of businesses when US companies in the industrial sector started sourcing out labor and raw materials for their operations back in the 18th century. However, it wasn’t formally identified as a business strategy until 1989.
Outsourcing gives you an edge over competitors
1. Access to knowledge and skills
Sourcing people who are already well-versed at doing specific tasks is a great way to fill knowledge, skills and experience gaps in your in-house team.
2. Focus on your own competencies
Outsourcing the tedious, non-income generating activities frees you of the time to focus on things that matter most such as growing your business and closing sales.
3. Reduce operational cost
Outsourcing is usually cheaper than hiring a full-time employee. On top of that, you don’t have to pay for training, equipment, medical and other benefits that are expenses in hiring an in-house employee.
4. Be ahead and take advantage of the new technology
Technology is evolving day by day and those who utilize it have the most advantage. Save time by outsourcing the use of this technology to people who already have years of experience instead of starting from scratch.
