Years ago, foreign or “offshore” outsourcing became a frequent go-to for many U.S. companies, particularly the big and mega-big corporations. The primary reason for the popularity is apparent: developing countries offer large populations of individuals who will work for a fraction of the cost of American workers.
However, offshore outsourcing is not always the best solution for every company’s logistical needs. Local outsourcing, as the name implies, is contracting out business tasks closer to home. Many small businesses have found local outsourcing to be a strategic means to create and deliver products and services without having to manage the burden of costly infrastructure.
Why do companies choose to outsource?
No one person or even one team can do everything, at least not well. To continue to grow and be successful, a small company will need to make decisions about where in-house talent will focus and what tasks should go to outside suppliers.
In the beginning, your small company might have been able to manufacture and package all your products, store them in a small space, deliver with a few trucks, and keep customers happy. As your company grows, however, the complexities and costs of these tasks take on a life of their own. Local outsourcing can be the solution, particularly for handling the repetitive, non-strategic activities of the operation.
Some of the top reasons for considering local outsourcing include:
● Increasing revenue. Making improvements such as greater flexibility and responsiveness, better product quality, and more time for creating additional or improving current products or services.
● Adding capabilities. Putting an additional focus on innovating, taking advantage of emerging technologies, gaining access to outside skills, and increasing capacity.
● Reducing costs. Lowering operating and capital investment costs, managing or reducing payroll, and moving from a fixed to a more agile variable cost model.
If your company is hoping to scale business operations without a significant increase in cost or a sacrifice in quality or customer service, it’s time to take a serious look at local outsourcing.
What should you look for in an outsourcing company?
In general, the primary qualities you will be looking for in an outsourcing company is one that is either skilled in a capability that you’re not — or one that can do what you’re doing now at a lower cost. Look for a local outsourcing company that has demonstrated bench strength in your industry or with businesses that have similar operational requirements.
Additionally, look for a local outsourcing provider that has a diverse and stable customer base. This will give you greater assurance that once you make the switch over, you will be able to enjoy a long, fruitful relationship with a trustworthy, reliable outsourcing provider.
Another crucial factor to consider in an outsourcing partner is the workforce. Ideally, the outsourcing provider will have a large pool of skilled and dedicated workers who are able to handle your current and future needs. Finally, make sure the outsourcing company you choose has experienced management, strong communication skills, and a stellar reputation in the community.
When you’re ready to partner with a reliable Cincinnati outsourcing provider with decades of experience, talk to the experts at Ohio Valley Goodwill’s Industrial Services Division.
A partnership with Ohio Valley Goodwill not only benefits your business, but it also supports our non-profit mission to provide meaningful employment opportunities to individuals with disabilities. We’ve worked with some of the top brands in Cincinnati, Northern Kentucky, and Southeast Indiana to provide quality assembly and kitting services, packaging, order fulfillment, and inventory management. Want to learn more? Contact us for a free quote and take a tour of our Cincinnati-based facilities. We’d be happy to speak with you and answer your questions!