It is a known fact that such prominent brands as Cisco, Adidas, Nokia, Samsung, Skype and many others are increasing their production capabilities by outsourcing some of their tasks or project. In many cases, this is not because they lack people, but because of a lack in some specific competence or expertise.
In LaSoft we have 3 people full time are searching for a potential partner all around the world. We contact 10-15 executives daily, and we found out that not everyone sees the new potential contacts overseas as an opportunity.
Some people are reluctant to outsource their product development activities to overseas vendors and among the main reasons are:
- Not enough experiences in outsourcing
- A desire to build and keep expertise within the core team
- The team expertise is a part of their offer to investors
- There is no need for outsourcing because an in-house team is doing well
However, if you want to build a world-class product, you have to involve world-class experts. On diagram 1.0 you can see a list of activities you have to perform well to increase your chances for success.
At the same time having all of this experience, inside small or even medium size company is a challenge. If some blocks of activities cannot be done well inside your company, if they are not your core competence most probably you will create a “quality debt,” which at some point may cost you a market share or even survival.
Outsourcing some of the activities to someone who has more experience and better expertise than you in-house will make your End Product better.
Nowadays executives all around the world are responsible for increasing organizational ability to use internal and external resources to generate new products and better value for the end customer. Outsourcing today is not only about cost efficiency. Searching and involving the best available talent is becoming the primary task. Those executives who will be able to see a new globalized economy as an opportunity to collaborate with companies all around the world will develop a new competitive advantage to their business and can deliver a better product for less cost.