Outsourcing Advice

Seven Outsourcing advises:

  1. Investigate outsourcing opportunities while the business is running well. It is time and resource consuming. More effort equals better results.
  2. Focus on your core competencies. Rest can potentially be the case of outsourcing.
  3. Research the market; collect information from multiple suppliers. Ensuring follow-up on initial  contacts.
  4. Be open to developing the competencies of your business. Investigate vertical and horizontal business expansion opportunities.
  5. Check if there are any win-win situations co-operating with a competitor on a specific project.
  6. Remember to inform employees about the plans. Lack of communication might lead to loss of key workers.
  7. Learn from others – participate in export delegations and the like, arranged by leading trade and industry organisations.

The benefits of Outsourcing

  • Outsourcing normally results in cost cutting and can be a good option instead of investment in expensive machinery.
  • A smaller company gets closer to its customer base when action as a partner and taking over sourcing assignments.
  • Outsourcing results in international experience – and can be a door opener to export opportunities and new export markets.

Outsourcing challenges:

  • Challenging and often requires new skills, i.e. new language skills.
  • Close co-operation with customers on outsourcing makes the company feel more dependent and less in control – but it is a two-way street.
  • Requires the right investment, time and focus from the management. Project turns around times are often from 1 to 3 years before a return on investment is achieved