Create a Competitive Advantage by Outsourcing
By Doreen M. McGunagle, Ph.D.
Organizations are under seize because of global competition. To compete
in the global economy, small and medium firms will need to create a competitive
advantage. By participating in the global service revolution you create a
competitive advantage for your business in the 21st century. Competitive
advantage is created through cost savings and productivity improvements that
allow management to concentrate on core processes. This will allow you to run
your business more effectively and efficiently.
Many companies are turning to business process outsourcing (BPO) to
create a competitive advantage over their competition. The global service
revolution has become a phenonomen that will have a major impact on your
business in the 21st century. BPO is a strategic tool that enables companies to
focus on their business, become more efficient and even rival over their
competitors. BPO’s help companies focus their efforts on the value-added
function of their business which improves your bottom-line.
It is important that all businesses review their processes to determine
which ones are core and have an impact on the long-term survival of the firm. All
non-core activities of the firm should be considered for outsourcing. Companies
should be prepared to continually analyze the core and non-core processes as
the business environment changes.
Outsourcing of non-core activities by third parties should not affect the
quality of your products or services. By focusing resources on the most
important part of their business will allow companies to meet the challenges of
the future in a changing environment. For companies to survive in the twenty-
first century is will be necessary for those companies to adapt to the changing
environment.
Doreen McGunagle is the CEO of Global Strategic Management Solutions. Her
firm focuses on assisting clients in creating a competitive advantage, improving
profitability and changing their business processes to achieve their goals.
Professor McGunagle currently teaches International Business, Strategic
Management, Organizational Change, and Leadership courses for several
Universities. Her book, The Chinese Auto Industry: Taming the Dragon is
available through Amazon.com. Doreen can be reach by e-mail at
dmcgunagle@globalstrategicmgmt.com or by phone at 561-208-1071.