Outsourcing is a truly strategic choice for many companies, which hope to improve efficiency while reducing certain costs. They use external partners to whom they entrust all or part of their IT, HR, accounting or financial management, or even certain aspects of their logistics or production.
Outsourcing is gaining ground and evolving
Technological change is increasing owing and accelerating, forcing companies to face many challenges. Outsourcing can help them to seize these opportunities.
As a reminder, outsourcing differs from the basic delivery of subcontracted services. It involves close management by the ordering company and a real commitment from the external experts. New forms of collaboration are emerging, focusing on value creation, shared risk-taking, performance and innovation.
Today, in terms of outsourcing, even if cost optimization remains an important criteria, it is no longer necessarily at the top of the list.
In the past, organizations typically used outsourcing to improve back-office operations through cost reduction and performance improvement. Today, emerging solutions incorporating cloud and automation are empowering organizations to work smarter, scale faster, reach new markets, increase productivity and, ultimately, to gain competitive advantage. (Deloitte)
Six reasons for companies to outsource
To reduce costs
Reducing operational costs remains a key expectation when using an external service provider. Either because it reduces staff requirements or because it helps to optimize costs by accelerating certain developments.
To access new skills
Outsourcing makes it possible to entrust specific projects to recognized experts and thus acquire valuable know-how in areas not directly related to the company’s core business.
To benefit from the best tools
Service providers invest in the latest technologies as part of their core business. By working with them, you benefit from the latest tools to improve certain tasks and processes, and thus be more cost-effective.
To improve performance and reactivity
Having highly qualified profiles can be decisive for the company’s development. For example, an external expert eye can help drive the company’s digital transformation, streamline certain internal processes or rethink production methods.
Refocus internal forces on the core business
To face the competition, it is better to stay focused on your core business. By delegating certain less strategic functions to external service providers, your internal teams can focus all their attention on the company’s competitiveness and development.
Gain in flexibility
You are free to increase or reduce external services according to your real and specific needs. Thanks to these flexible partnerships, you benefit from a perfectly calibrated solution and a more scalable and dynamic collaboration.
Choice of external service provider: 4 criteria to be considered
Size of the service provider
It is better to find a partner of a size corresponding to yours. This will ensure that you are not the biggest customer (risk of not being able to meet all your requirements) or conversely the smallest customer (risk of not getting all the attention you expect).
Reliability and flexibility
Ensure that the chosen service provider can meet its commitments over the long term and that it will have the capacity to react in the event of an incident or unforeseen event.
Quality of services
The best way to assess the quality of a service provider is to consult with one or more of its clients before making a decision.
Listening and proximity
The perfect solution is to find a real “partner”, who is close – geographically and ethically –, who will be attentive to your needs and will be able to advise you on the directions to take.
One final piece of advice
Choosing an outsourced partner is an important decision that has a direct impact on your company’s performance. It is therefore better to develop a privileged relationship with your external service providers. Your company’s brand image and reputation may depend on it.