In the face of a down economy, it is imperative that every business take advantage of all available strategic initiatives to operate as efficiently as possible. Outsourcing is a powerful, strategic business tool that can reduce expenses, improve response times, and help develop products faster than onboarding and training in-house resources. It’s particularly helpful in an environment where such resources are hard to find– maybe even impossible!
In many cases, outsourcing is only considered a way to reduce expenses. But in today’s world and economy, outsourcing can allow companies to do so much more.
In fact, in a recent survey, more than 90% of companies said outsourcing is becoming an important part of their growth strategy. This means you will be competing against companies using outsourcing to create a strategic advantage. They will be faster to market, and with lower prices. You should ask yourself, is there work you’re trying to get done, that others could do better, and more efficiently?
What’s holding you back?
Too many executives think of outsourcing as sending a project offshore to a third world country where control is lost and follow up support is difficult, if not non-existent. That’s not TotalSim’s outsourcing model. We are a domestic company utilizing domestic resources focused on taking your business to the next level of efficiency. Working hand in hand with our clients as an extension of their team is our key to success.
And yet, we still encounter hesitation from companies when it comes to making the decision to outsource. The two most common reasons we hear from companies who are reluctant to outsource are:
- The reluctance to loosen control and flexibility.
Those who are experienced outsourcers say they have increased control over certain operations and if they don’t need services – they aren’t paying for them.
- Thinking a given function is too critical to outsource.
What is more critical than payroll? Payroll is outsourced all the time and these outsourced specialists can perform this function efficiently and effectively, allowing your team time for other, more company-specific activities.
Core competencies are essential areas of an organization and is where your company should focus its time and effort. But every non-core function should be investigated as well for its outsourcing potential.
An example of a non-core function might be modeling and simulation. In a variety of industries, the idea of incorporating modeling and simulation into your plan may initially seem like an added expense. But, with this technology you can use is to inform your physical test, therefore, improving the value of any tests you do conduct. In the end, you are actually saving money by reducing or eliminating the need for costly physical testing.
It can be overwhelming from a resource and financial perspective to think of investing in the software, computer resources and staff necessary to start your own modeling and simulation team. And this investment is especially daunting with economic uncertainty looming. This is where outsourcing is a cost-effective solution, giving you the immediate benefits of virtual testing without the time commitment or risk that comes with developing your own team.
The business world is competitive and when a recession is threatened, companies search to find and develop any advantage. Executives want to save costs, improve capabilities and be ready to benefit from new competitive solutions.
TotalSim can help! Contact us today to learn more about how our team of experts can help improve your process.
This is the first a a two part series, check back next week for the second article.
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