Outsourcing without Fear

Introduction: What is outsourcing, and why should your company consider it?
For many companies, the thought of outsourcing any of their operations can be frightening.

Successful companies and their CEOs have often achieved their success through meticulous attention to detail and extensive control over every aspect of their businesses.

Outsourcing, defined by Rob Handfield of N.C. State University as “the strategic use of outside resources to perform activities traditionally handled by internal staff and resources,” calls to the minds of many CEOs a loss of control, transparency, and security that inspires skepticism about the value of outsourcing.

As a result of this apprehension, many companies take the “if it ain’t broke, don’t fix it” approach to outsourcing, assuming their internal operations are “good enough” and improving them is not worth the perceived risk.

Turning a blind eye to potential problems and areas for improvement, however, can result in a timid and complacent workplace culture. As Colin Powell once said, “Keep looking below the surfaces.

Don’t shrink from doing so [just] because you might not like what you find.” While much of the twentieth century was led by businesses that owned, managed, and controlled almost all of their own assets, this is a rapidly changing trend.

The increases in business diversification in the fifties and sixties and the growth of global competition in the seventies and eighties demanded that businesses adapt to be more creative and flexible.

As a result, many companies began focusing their attention on their core business and outsourcing functions for which they had no internal competency.