The Top Reasons Why Your Company Should Consider Outsourcing
Any business starting out and getting past the 5-year mark can attribute that success to one trait: alignment with its core competencies. Core competency can be defined as "a harmonized combination of multiple resources and skills that distinguish a firm in the marketplace". The core competencies of a corporation fulfill 3 criteria:
Provides potential access to a wide variety of markets.
Should make a significant contribution to the perceived customer benefits of the end product.
Difficult to imitate by competitors.
These are defining capabilities or advantages that distinguishes a corporation from its competitors.
Due to growth and success, companies take on more responsibilities that can be outside their core competencies. The once small group of entrepreneurs took on much of that responsibility from the start and feel the need that they can still tackle the new responsibilities. Sometimes they hire the right people to do so. Sometimes, they take it on themselves and the company begins to stall and stagnate. Reasonably so, it’s hard to walk away from the hard work and investment that started it all. Interestingly enough, there is an opportunity when the company considers outsourcing.
The decision to utilize outsourcing is a strategic one and not deciding to outsource is a tactical choice. To differentiate between the two choices, the question has to be asked: Why consider outsourcing? Here are the top reasons:
* Like Fortune 500 companies, a business owner needs to identify the strengths of the company and then find someone else or another business to complete all the non-core competencies. This allows a company to remain focused on their core competencies and overall continue the operating which generated their level of success from the start.
* There are less operating costs.
* Free internal resources for other core competency functions. This allows a joint effort from all staff to complete core business functions and strategies.
* Even though the company has grown, it still lacks the resources to handle and operate certain tasks outside of its core competencies.
This is where outsourcing comes in and here are some of the benefits:
* Expect to save money and to have more time to focus on the key part of your business.
* The costs for outsourcing are relatively modest.
* Resources can be better utilized elsewhere.
* Outsourcing is relatively straightforward.
* An external company or individual can be much more efficient and provide greater value.
In most cases, many in-house employees are simply overloaded with other responsibilities and find it difficult to meet the rigorous demands of today's ultra-competitive business environment. A lot of business owners are great at their business but their [insert non-core competency here] staff struggle and have a hard time finding success.
The message: with the right level of expertise advising you or simply managing your non-core functions, your company has a greater opportunity to grow and avoid becoming stagnant. Having the right skill-set available to you avoids headaches as your business develops and continues growing intelligently.
We Can Help
If you would like to find out how outsourcing your claims recovery function can save you money, help recover more money, and recover that money faster, please call us at (405) 606-8205 or send us an email.
Posted on Thu, September 25, 2014
by Bill Haaland filed under