In Outsourcing we trust
Many people look at Outsourcing as the last resource or as a way of losing control over your projects. We often hear that Outsourcing is good only when I have nothing to lose, or on the other spectrum, I am only starting up, there is nothing to outsourced if it was never inside the company.
Today, I decided to give you examples of giants that outsourced massively to get where they are today.
Procter and Gamble
I think it will be a safe bet to say that you have bought a product from Procter and Gamble in the last two weeks no matter where you are located.
To make a diverse portfolio of products requires a lot of research and expertise of your employees or colleges. Such an extensive portfolio is close to impossible to make it successful when you do not ask for help. Therefore, Procter and Gamble decided to outsource a big part of their R&D processes to increase their portfolio with the help of true professionals from different industries. We might simply state that they are working with the best. Their innovation productivity increased by 60%, and if you want to be more pragmatic, the 400 new products created by the outsourcing process brought to the revenue of $10 billion. In 2015, half of the innovation process of P&G came from Outsourcing.
Yes, the other giant of the retail market is also growing by Outsourcing. When the business’s digitalization became inevitable, Unilever decided to stick with what they do best and outsource the rest. Therefore, Unilever agreed in 2005 to outsource their IT services entirely to be outsourced as a strategic management decision. This helped Unilever to save up to 700 million euros on operations.
I think it will be a safe bet to say that some of you are reading this article from an Acer. It is one of the best producers of hardware. Acer is a Taiwanese company that successfully presents itself as a hardware producer without producing any hardware in-house. Yes, you heard me, Acer is outsourcing all their processes besides marketing and advertising. They are a marketing company that decides to work for themselves; this is the power of stocking with what you are good at.
It is Netflix of documentaries of any kind, and they had a fast growth, being the unicorn cab of streaming services. More impressive is that in 2019 Curiosity Stream decided to outsource their software development to a team of 6 cutting their costs significantly.
Andre Silva, CTO at CuriosityStream: “Outsourcing is great value for a business, as hiring remotely makes it easier to scale. The main advice – try to figure out a way to integrate the offshore team with the on-site one. It can be challenging, but the return on investment is definitely worth it.”
Outsourcing has many successful stories that raised the bar for the company in terms of profit and achievements. Outsourcing is not only about passing the problem to specialists but is also about increasing your capabilities of new ideas. By outsourcing your project, you can unleash the full potential that you have as skills and ambition.
Those are just some other companies that have successfully outsource to evolve:
I know that most people are not trying Outsourcing because they are afraid of losing control, or because they feel that communication with the team will not be efficient enough. This is why a good strategy, especially if Outsourcing is happening outside the country, is to mix a project manager from a third party. As this is the leading service of the 3rd party, their focus will be on making sure that the project is delivered the way you want. If you wish to, the project manager becomes a catalyst for your project. A good project manager also offers matchmaking services, this way, he could tell you, depending on the complexity of the project and the budget if it will be better to split the Outsourcing between multiple companies.
Promise me something that in 2021 you will consider Outsourcing for your business so you can achieve your ambitions, so your work fulfills your dreams.