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Outsourcing
A clear trend that has been building up steam over the last 5 years. That
is for firms to rationalize their 'core competencies'. After doing so, many
firms have begun to outsource functions where they don't
feel that they can acheive critical economies of scale to perform the function.
These functions typically are 'non-value-added' functions, don't impact
the bottom line directly,nor do they have any influence on the competitive
advantage of the firm's primary business. The functions can be done more
efficiently by a service provider that is focused exclusively on this function
as a core business. Outsourcing of these types of functions for your firm
enables you to focus on your 'bread and butter' business lines and maximize
profitability. |