Reasons and objectives of outsourcing

I have been studying outsourcing management methodology and have read all kinds of materials. Now, the most primitive problem is the purpose of outsourcing.

Outsourcing of an enterprise must have its strategic significance. If some jobs are too busy to outsource, I would simply turn into tactical outsourcing because I am too busy, the goal is to find someone to help.

So the purpose of Strategic Outsourcing includes:

 

1. More profits can be obtained than employees who use them;

2. Focus on the company's main profitable business;

3. Obtain more professional services;

4. share risks with service providers.

 

 

Although I do not want to admit that 1 is the main reason, I have to admit that this is more important than we think. If the cost is not reduced and the profit needs to be increased, 50-60% of outsourcing will not happen.

2. Focus on the company's main profitable business. Suppose I am China-Pub, then I will definitely not do the logistics link in the book delivery, or I will not do it either. If it companies are the most profitable in terms of business demand acquisition, solution development, architecture design, and fault diagnosis and repair after the system goes online, the so-called detailed design, coding, and testing should be included.

For IT outsourcing companies, the most profitable part is the detailed design, coding and testing work, so the high-end demands and architecture should be included.

Someone once asked what is the core competitiveness of outsourcing companies. In this situation, I am more efficient because I only focus on detailed design, coding, and testing. Whoever gets the efficiency has mastered the soul of low-end outsourcing. Efficiency rather than price. I did not expect this conclusion.

3. Get more professional services. If an outsourcing company has this characteristic, then he and the outsourcing company stand at the height of their partners. If his service is still relatively wide, he will not care about one or two customers, so that he will have the cost of negotiation.

I have several questions to ask:

1. Is there anything other than the preceding three main objectives?

2. Do we need to switch to business needs and high-end design for outsourcing?

3. in order to get a clearer cost or a lower cost, the customer is born from the on-off perspective. if the customer is from the off and several off competitors, efficiency is the key to survival. That is to say, off competition depends on efficiency. How can we improve efficiency?