Outsourcing Products & Services- A Strategic Business Acumen
What started in the industrial revolution in the 1970s as outsourcing services to serve multiple clients across industrial verticals, went on to become the core of every competitive business strategy. Outsourcing has since its inception gained wider control over all the elements of a business to shift the focus from supplier to business partner. It was the tactic of farming out every aspect of the business from basic to complex services, that made outsourcing a hit amongst businesses.
But what is outsourcing still remains a conflicting term for few, who often misconstrue it with offshoring.
Let’s walk you through what outsourcing stands for and what encompasses this term before we delve into how outsourcing effectively solves business problems.
Outsourcing is a business practice in which an organization resorts to a third party to handle their tasks which can range from operations to services to client management. With its division into tactical, strategic, and transformational outsourcing, it is often termed the perennial service that has stood its ground for decades and continues to emerge as a powerful tool for business expansion. From information technology services, and call center functions to manufacturing products, human resources, and even financial functions can be easily outsourced.
The staggering figure of the global outsourcing market at $92.5 billion in 2019 is proof of the vitality of outsourcing and the many benefits it offers a business enterprise.
A report by PA consulting brings to light that a whopping 30% of UK businesses plan to outsource by the year 2022. This figure stems from the challenges that outsourcing addresses and enables a business to grow while offering better services and products to its customer base.