WHY OUTSOURCING IS GOOD FOR YOUR BUSINESS
With
the U.K. economy going from bad to worse, recently entering into a
triple dip recession, many large corporations are looking for ways to
slash their budgets while maintaining high levels of productivity.
Most companies are now understandably cautious about spending large
sums on traditional media and print methods of advertising and are
therefore turning to companies like DNV Global Solutions to conduct
the sales & marketing of their products through tried and tested,
cost effective methods. Outsourcing in laymen’s terms basically
means handing over the reigns to a firm specialising in marketing &
sales rather than keeping the project in house.
In
business terms outsourcing is described as the contracting out
of an internal business
process to a third party organization. The practice of
contracting out a business process rather than staffing it internally
is a common feature in the modern economy. Often the tasks that are
outsourced could be performed by the company itself, but in many
cases there are financial advantages that come from
outsourcing. Outsourcing can offer greater budget flexibility
and control. Outsourcing lets organizations pay for only the services
they need, when they need them. It also reduces the need to hire and
train specialized staff, brings in fresh engineering expertise, and
reduces capital and operating expenses.
We can break down outsourcing strategies into three broad categories that meet different goals:
- Efficiency – the first step in an outsourcing strategy is to achieve cost savings, typically through process efficiences.
- Enhancement – once cost savings have been realized the next stage is to achieve operational improvements related to business objectives such compliance and meeting availability expectations
- Transformation – business transformation is the end goal for an outsourcing strategy, where an outsourcing relationship is used to drive business performance improvements
With the economy continuing into a downward spiral, with no signs of coming out of recession any time soon we expect the number of companies turning to outsourcing to rise. It's no coincidence that Direct Sales has been the fastest growing industry in the world for the last 3 years. It's a recession proof industry that's going from strength to strength and here at DNV Global Solutions we're excited to be a part of that. Our personalised approach and tailor made marketing strategies have made our business model highly attractive for many blue chip corporations which is why we have an ever growing client portfolio.
