Well in general terms “a precise definition of the term ‘outsourcing’ has yet to be agreed upon”. According to Wikipedia’s reference today “The term is used inconsistently. However, outsourcing is often viewed as involving the contracting out of a business function – commonly one previously performed in-house – to an external provider”.
I’m confused as to why it’s used inconsistently; my definition would be similar, and simply put – “Outsourcing is the contracting out of a business function”.
At the end of the day, it shouldn’t be a term misunderstood nor difficult to define. Often the complexity of terms and phrases is all our own doing. Of course over the years, the relationship between a word and what it means can alter, becoming either more acceptable or non-acceptable as times goes on. Take for example the ‘virtual office’. This term has been around for over 28 years, (having been first used in 1983 in an airline in-flight magazine article about portable computing!) and yet it still causes confusion. It’s a grey phrase, yet more recently the term ‘virtual office’ is becoming more recognisable and user-friendly as businesses become more familiar with the benefits and features of using one. It goes hand in hand with outsourcing in my view. So why make it more confusing than it has to be?
Personally, I think it should be kept in simple terms. And more so – we should realise the reasons why? First and foremost, it’s the cost savings. We all know how crucial it is to keep our business operating costs down. Not to mention the added fact of the climate we’re in and the fierce competition we have to stay that one step ahead. In reality, the business owner or company needs to have full time focus on the business rather than trying to do everything with one hand tied behind one’s back.
It’s no surprise that when you outsource, the quality levels and accountability can be increased dramatically, not to mention having access to a larger talent pool with sources of skills and knowledge. The beauty is that all the elements can be done remotely and delivered digitally and as a proven example, we have clients using our ‘virtual office’ services for over 8 years now and we’ve never actually met them in person.
Sounds bizarre?
Might sound like it is – but it’s not really. We’ve seen businesses thrive by outsourcing the basics; office admin, telephone answering, secretarial and book-keeping right through to the specialised services including website creation, analysis, PR, marketing & accounting services. And why? Because they’ve chosen the correct service provider.
Having someone look after some elements of your business while you concentrate on revenue generating tasks can be daunting, a little like ‘letting someone mind your baby’. Trust is of paramount importance. But having a service provider, who is accountable, trustworthy and considers your business ‘a vital part of their own’ is the right way to go. And even more so someone who understands your business.
Plausibly though, it’s not for everyone. Maybe it’s a step too far. And logically even though the majority of business owners already outsource, some just don’t use the ‘outsource’ term. When in fact, all SME’s outsource whether we realise it or not. From our accountants, website designers to our solicitors – if it’s not done in-house, it’s outsourced! And for some, it’s the best thing they’ve ever done.
Click here to read what some ‘OutSourceRs’ say:
And if you have any questions or queries at all about Outsourcing , please don’t hesitate to give us a call. 1850 812642