Few weeks ago, I was at a C level executive conference where the common threads of discussions were:
- How can businesses grow without losing focus on its core competencies?
- What can be done to increase sales and retain customers?
- If businesses don’t have right people or don’t want to hire full time employees, then what are their options?
The above applies to most of the businesses in today’s environment, be it small, medium or large; they are looking to focus on core competencies, increasing sales and finding right people. Well there is nothing new in these questions or these issues; the same questions could have been asked thirty years ago. What is different though is that now we look at the same questions in different way. In the 1970’s and 1980’s we outsourced certain services such advertisements and legal services, in 1990’s we outsourced some additional services such placement and recruiting and in 2000 and 2010 we are outsourcing IT, HR, R&D and lots of other services.
Let’s look at how a small or medium business can increase customer satisfaction? They can use surveys to find out how their customers assess their products or services and thereby increase sales. Now the question comes who will do those surveys? An in-house team or outsource the service from an established organisation? It often makes sense to outsource such services. In another example, I was talking to with a Nuclear Power Plant Executive, who was complaining that he is losing much of his workforce. The organisation is not interested in maintaining certain facilities such as design and development, or the tool room; instead they are outsourcing such services to globally recognised large organisation. This is a good thing because they are obtaining excellent technical expertise and quality of services; it is a bad thing in that the company is losing its human capital.
In today’s global economy, it is not very difficult for a small business in US to outsource its call centre to the Philippines, its IT services to Russia, and its payroll to Mexico. The small business can continue to focus on its core business and grow, meanwhile those businesses that provide services from Philippines, Russia and Mexico also grow. They may in turn buy some other goods or services of US, which in turn creates demand for our small business. The Global Sourcing Council brings best practices, helps small businesses to understand what measures it should take to mitigate risks and maintain quality and service level standards.
I look forward from our readers to continue the debate. □
Sanjay Sharma has over twenty years of Global experience in Information Technology, Supply Chain and Project Management. Sanjay has managed backend Sourcing and Procurement operations for large organizations in Europe, Far East & Australia. He led procurement operations for a large industrial goods manufacturing organization. Sanjay has articles published in business magazines and publications on the subjects of procurement, supply chain and project management. Sanjay speaks at Conferences, Seminars and Symposiums. He works as consultant for Project Management and Global Sourcing. In addition he teaches Project Management subjects. His email contact is firstname.lastname@example.org.