We all agree on the premise that an organization’s human capital is its main asset and that without it, it is impossible to develop a successful business.
Now Should the staff be your own or can they be outsourced?
It’s common practice outsource tasks that are not key to your company’s competitive advantage. We all hire specialists in specific tasks such as technology, graphic design, accounting, legal, recruitment or specialists, for example, in SEO.
We met a few years ago, precisely since 2020, in a paradigm shift as companies no longer only outsource tasks but also begin to outsource work areasThey no longer ask for services but for solutions. Outsourcing institutional, marketing, and technology management, among others, is becoming a common practice due to the expertise they have (or should have) and for the lower risk that this implies to the business.
Susan Cramm pointed out many years ago in an article published in the Harvard Business Review that “you have to outsource the work, not the leadership” and possibly that is where the key lies.
In countries where the employer is treated with derogatory and grotesque labels, outsourcing often becomes the best option, for strategic business reasons but also to minimize contingencies in labor justice. Likewise, or perhaps because of this, a company can enlarge or reduce projects or teams, according to the needs and opportunities of the moment.
In the processes of due diligence Analysts study the obligations and risks of companies to verify the value of the company to be acquired (liabilities). Outsourcing can reduce these risks and therefore improve value.
For all this, it is that this paradigm shift grows. The search for solutions in important areas but that do not directly affect the purpose, is being seen above all in national companies whose leadership continues to be held by one of the shareholders, since it assigns greater speed to this type of key decisions.
The subsidiaries or affiliates of large corporations cannot take this path because, even if they want to, they have a lot to justify, hence their speed of change is lower.
Many times the team’s commitment to the company is considered a disadvantage of outsourcing, since they are not exclusive and their head focuses on different clients. This should not be ruled out, although the main variable should be the results it offers. It is important that the area leader be a person who has the professional attributes and values that general management requires.
Many companies show “muscle” by publicizing the number of staff they have even if they are not efficient and much less profitable. Transforming a company requires thinking about the future and breaking some paradigms. In times when change is the only sure thing, it may be prudent to focus on your competitive advantages and outsource the rest.
HRC Consulting Partner
Source: Ambito
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