New Revenue from Outsourcing!

New Revenue from Outsourcing is Not Just Your Grandmum’s Plan for Cutting Labor Costs, It’s a Business Model for Growth!

The reasons companies outsource projects or entire departments usually look something like the list below.

Yet the new revenue from outsourcing model is not only significant, it’s changing the way that HR Managers and operations people think about labor – and the markets they’re currently serving.

We’re going to show you that this current “reasons for outsourcing” list – that lots of hiring managers know and understand – will need to be radically updated, and in the near future. But let’s look at what you’re probably thinking – first.

1 – Operational and labor cost savings – This is the big one, that used to be a real no-brainer. As we’ve shown in the past, the no-brainers are very often the places where you can find revolutionary thinking and ideas, if you just give them some thought – but let’s come back to that idea.
2 – Focus on core competency – or core business focus, whatever you want to call it. The core of your business may not be expensive IT services or running a call center, so why are you doing it?
3 – Delegating! – Difficult and complex functions are sometimes necessary, but do you need to do them in house?
4 – Mitigate Risk – Maybe your local labor market is too unstable, or too expensive? A far less expensive offshore installation will let you carry on without carrying quite the same risk.
5 – Free up internal resources – again – for that core business focus – and while tapping into far better expertise than you necessarily want to employ yourself.
6 – Along the same lines – gaining access to a truly global knowledge base and skills pool can have real advantages too.
7 – Leverage capital – It’s also possible to leverage a fund for better profits for the company, and often this can only be possible by outsourcing or offshoring.
8 – Access new markets – is very often only possible because of a company’s ability to offshore first and then, learning all the while, to expand into their new host market.

Managing new languages, business cultures, regulatory environments and time zones is not something a company will learn to do in a day.

New Revenue is Everything. Really.

As mentioned above, those are all the things we assume you already think about Outsourcing. But the paradigm is shifting quickly and that last point – Access to New Markets – is soon going to be wither moving way up the list, or replacing much of the list altogether.

You see, all decisions used to be based on cost. True,  quality and delivery frequently entered into the equation, but revenue opportunity is simply too big of an elephant in the room for lots of medium and bigger companies to want to overlook.

You’re old one-size-approach to everything simply isn’t going to cut it much longer

Both HR and Operations can gain competitive advantage strictly through developing a workforce that is optimized and working well. No matter where they are, too. Mastering a distributed workforce model, in different and better markets – through well-implemented management plans – will mean that your outsourcing is always rolling you out to a better opportunity.  Imagine using all of your outsourced employees as pre-employees in a market you’ve yet to enter into. If you’re only trying to cut costs to service a mature market, you’re still only cutting costs to serve  market-share that is guaranteed to shrink.

Experienced HR professionals, and their partners on the operations side can take a serious leap into a new revenue stream, without risking the roof. And of course, you’re current multiple locations just make the whole project seem like something you’ve already done!

Well implemented management plans – scalable software that grows with you – and strategic selection of outsourcing and offshoring partners are all part of the New Revenue Model for outsourcing. Take advantage of all of them. We’ll help.

Karin Jakovljevic

About the author

Karin Jakovljevic

Karin Jakovljevic is the head of marketing at Ximble, a powerful, cloud-based workforce management system, simplifying employee scheduling and time tracking for retailers, restaurants and small businesses.

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