The core function of any business is often captured with one short mission statement that expresses the company’s main purpose or ‘reason for being’. Having such a statement, in a way, acts as a reminder to both the business itself and the customers, of what it is they aim to do better than all their competitors.
Indeed, most companies should be able to easily articulate what it is they actually offer and what their area of expertise is, whether it’s as an electrical retailer, business wholesaler or fast-food restaurant. But whilst an organisation may well be miles ahead of their competitors in terms of the services, products and general level of expertise on offer; the importance of having a sound business plan in place cannot be overstated, as it will help ensure that the company can grow and be successful over the long-term.
A thorough business plan should cover everything from financial requirements and marketing strategies, through to human resources and competition. And one thing that will soon become evident from this is that it is impossible to become an expert on everything. For new businesses and established businesses alike, one of the biggest challenges in adhering to their mission statement is not only trying to be the best at what they do, but also to be the best at the things they don’t do such as recruitment, accounting, marketing, health and safety – everything that makes any successful business what it is.
It is for this reason that many businesses choose to outsource certain aspects of their business to utilise the knowledge, expertise and technical resources of other organisations. Not only can this be a lot more cost-effective in the long-term, but it also frees up a lot more time to focus on the core strengths of the company.
Information technology, in particular, is a key area for most 21st century businesses, and is commonly outsourced to external organisations due in part to the level of technical skills required. A major advantage of doing this is the fact that a company can benefit from all the latest technology and software/hardware upgrades without having to invest in the expensive systems that are necessary to follow the market developments. Many companies will outsource all aspects of their IT, whilst some may only outsource their network management, website development or data storage.
Business outsourcing is also advantageous with activities such as recruitment, as it enables access to specialist services and expertise as and when required. So, whilst most successful businesses are built on the basis of a sound business plan, this plan should also reveal that it is impossible to be an expert on every aspect of business management.
For this reason, business outsourcing is a sensible and cost-effective way of tapping into expert knowledge and frees up more time to concentrate on the company’s core strengths.