By March 31, 2014 0 Comments Read More →

One Step Re-Engineering through Outsourcing

One Step Re-Engineering through Outsourcing

Staying competitive in your marketplace means you must constantly look inward and examine the opportunities to improve processes, systems and ultimately, results.

Outsourcing a business process can sometimes be a quicker, more effective way of achieving the same or even better results as re-engineering with less overall effort.

The Outsourcing Institute considers outsourcing to be a central management tool for the fundamental re-engineering and re-energizing of businesses, and have found that accelerated re-engineering benefits is one of the top ten reasons companies outsource non-core business processes.

Re-engineering is one of the main strategic tools for staying competitive. It began in the 1980's as large corporations began to re-think the way they did business in order to adopt the powerful new computer systems that were emerging. Re-engineering, as a label for what was happening, was introduced by Mike Hammer in his groundbreaking article "Re-engineering work: don't automate, obliterate" in the Harvard Business Review.

The definition put forward by Mike Hammer, "Re-engineering is the radical redesign of business processes for dramatic improvement", defined the nature of re-engineering as a radical change. Since he coined the phrase, re-engineering has played a large part in improving the competitiveness of corporations.

At the same time, the mere mention of Re-engineering often invokes fear. Not just because it means change to the status quo and a potential risk to individuals within the company, but also because since the 1980's, business has come to realize that it is more difficult than it seems to get the results they need from re-engineering, and the task itself consumes a great deal of resources. This is because since re-engineering took root, the importance of change management as part of the re-engineering initiative has come to the forefront. It was no longer just about technology and processes - it's also about people - and the reality of dealing with the human element during the initiative is what made re-engineering a real challenge.

Despite this, applying sound re-engineering principles to your core business may still make sense, since your core business is what makes your company successful, and is often the most important part of your competitive advantage. For non-core parts of your business, however, there is an easier alternative for getting better results. Increasingly, organizations are re-engineering non-core areas of their business by outsourcing. In one fell swoop you can change everything, without the long drawn out process that re-engineering entails.

Outsourcing a business process is a quicker, more effective way of achieving the same, or even better, results as re-engineering. The Outsourcing Institute considers outsourcing to be a central management tool for the fundamental re-engineering and re-energizing of businesses, and have found that accelerated re-engineering benefits is one of the top ten reasons companies outsource non-core business processes.

Essentially, outsourcing means turning over the business processes to an outside service provider as part of a contractual relationship. This means turning over both the work and the management of the work, in such a way that it still integrates with your core business.

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