Saturday, May 18, 2024
CEOWORLD magazine - Latest - CEO Insider - 4 Ways That Outsourcing Can Benefit Your Business

CEO Insider

4 Ways That Outsourcing Can Benefit Your Business

As a CEO, your job is to increase your company’s profitability. That involves looking outward to chart market trends and court new business, as well as focusing inward to streamline production and expand your service offerings.

Proactive CEOs will always be on the lookout for profit-killing bottlenecks, and be able to eliminate them quickly and efficiently.

Common Business Bottlenecks

  1. Back Office Infrastructure – Filing paperwork and entering data. It’s not glamorous, but it has to be done to keep your business running. Savvy CEOs will outsource these day-to-day operations to trim costs and free the in-house team to focus on customer-facing core services.

  1. Low Capacity – Are you losing revenue because your organization doesn’t have the bandwidth to handle more work? Augmenting your staff with an outsourced team allows you to take on more jobs and rapidly build new revenue streams.

  1. Slow Productivity – Are your competitors delivering products or services faster than you? Outsourcing parts of your production or logistics operations can speed up your turnaround time and allow you to hit the market faster.

  1. Shallow Talent Pool – Not only do you have to have enough people, they have to have the right level of expertise. Recruiting and training can be a long and expensive process. Hiring outsourced teams of experts in your field gives you an instant boost in talent at far less cost. In addition to supporting your core operations, outsourced teams can allow you to expand into a new niche or offer correlated services to your customers, without the heavy investment of time and money involved in developing a new department.

A Real-World Example

Let’s look at the ways one company helps CEOs eliminate each of the above bottlenecks. Indovance, Inc., a leading global outsourcing firm based in Apex, North Carolina, specializes in CAD production for architecture engineering, and sign companies, as well as pre-press services for media.

They provide scalable teams of experts to handle any aspect of the design process, from data entry and analysis to surveying, modeling, and BIM conversions. CEOs from small, family-owned companies to international corporations rely on them to handle lead generation, draft detailed bid and construction sets, help beat deadlines, provide occasional specialized industry services, and much more. Under the auspices of what they call the Twin Engagement Model, each team acts as a direct report to the hiring company’s existing management, serving on an as-needed basis. This allows the CEO to increase or decrease production as the market demands.

A New Business Model

Outsourcing is not a new idea, but many CEOs are unwilling to consider it as a first resort due to the common perception of a lack of direct control over, and poor visibility of, the outsourced processes. Now there a plenty of processes in place, like the Twin Engagement Model, that allow CEOs to retain control over the entire production line, while still enjoying the cost savings and lower risks associated with the traditional outsource model. In today’s uncertain markets, this hybrid and scalable model of outsourcing is an attractive benefit to your business.

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CEOWORLD magazine - Latest - CEO Insider - 4 Ways That Outsourcing Can Benefit Your Business
Sandesh Joshi
Sandesh Joshi is the President and co-founder of Indovance Inc. Prior to founding Indovance, one of the leading CAD and drafting outsourcing service providers in the world, Sandesh worked at SolidWorks Corporation as a senior R&D member. He has a bachelor of mechanical engineering from the Indian Institute of Technology, Bombay, India, and a Master of Science from North Carolina State University in Raleigh, NC, with a specialization in CAD.