Why do organizations outsource services? One big reason for the trend is because the services are not the CORE COMPETENCIES of that particular firm.   For example, ASCD (my employer) is an educational services association – we are not a 100% events firm.  Therefore, we hire out to certain firms that are specialists in those areas.   Another reason is budget, if negotiated well, outsourcing services can be more cost effective to some organizations that doing that service in house.

 

What are your thoughts on this now that you’ve had a chance to do the reading?   

How would you go about finding the RIGHT services partner?

I believe that outsourcing for the different services proves very helpful in resolving the problems. Especially, it is useful for the small companies who have limited resources for doing various operations. I think along with lowering cost it allows the user to access the new technology, expertise and provide them flexibility in doing a business operation. It reduces the burden of doing work and at the same time allows the business to do some tasks more efficiently within a short span of time. It also enables the company to share a risk with the partner. That would contribute to improving the goodwill of the business in the market. Hitherto, if I got a chance to outsource for the services, I would first search for a right partner that has a good reputation in the market. Then I would check experience; ask him/her for the work samples and references. Secondly, I would also make sure that partner to whom I outsource for the services is financially secure so, that I can able to avoid any risk in advance.

Answer 2

I think outsourcing services is very cost beneficial because it saves you wasting your resources to complete that particular service. As stated, the company may not particularly specialize in a certain service so outsourcing is a must to get a certain job done. As well, when you outsource services you are creating new business relationships and getting the brand of your company out their in the market without having to advertise. If I was an event planner, I would try and research the most cost effective partner by revising their pricing and comparing them to certain reviews/testimonials that customers/clients are stating on the company website or review websites. I want to hear different opinions on working with a company before I invest in outsourcing.