September 12

Why Smart Leaders Understand Outsourcing Brings Life Into Their Business!

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When you hear the phrase,  “you must learn to get out of your own way”, what sort of images does it bring to mind? Possibly images of  someone sabotaging themselves, or maybe even someone who is preventing their own forward movement?
Dr. Jason Carthen: Outsourcing
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Overcoming Fears and Contradiction

Granted, many things may come to mind, but when discussing the topic of leadership, there is a harsh irony that comes into play when a leader chooses not to leverage the tools available to them when pursuing their goals. Why? Because leaders are responsible for serving with the best interests of the company always in mind, and to not exhaust all the possibilities points to a direct example of getting in the way of their own success. Now in contrast, when a leader looks for ways to minimize barriers to productivity by sharing the workload and evenly distributing the responsibilities that is a beautiful thing.

How to Expand the Influence

For example, leaders who leverage the practice of outsourcing unlock the potential for breathing life back into their business if it’s floundering. What is outsourcing? Outsourcing is the practice used by organizations to transfer portions of work to outside suppliers rather than completing it internally in order to reduce costs. To better understand the impact of outsourcing on a company’s bottom line, lets take a look at some of the Pros and Cons associated with outsourcing. In addition to the (a) benefits of cost reduction, (b) there is an improvement in organizational focus, (c) access to world-class capabilities, (d) quality improvement, (e) better risk management, and (f) tax advantages. 
 
[bctt tweet=”Leaders who leverage the practice of outsourcing unlock the potential for breathing life back into your business if it’s floundering.” username=”JasonCarthen”]

The Dark Side of Outsourcing

While the benefits mentioned above are substantive, there is also a downside to outsourcing. One of the chief concerns associated with outsourcing is the loss of jobs and unemployment. Loss of control can also happen when processes are handled external to the organization. In fact, you may find yourself at the mercy of your suppliers, which in turn has a negative effect on the morale of the remaining employees.

Leveraging Outsourcing

At the end of the day the decision to outsource can be a difficult one, but it’s up to the leadership of your organization to determine when and if outsourcing should be an option. The pros and cons should be carefully weighed to ensure the decision is in line with the entity’s goals and objectives.  

Point of Clarity Quote:

A choir is made up of many voices, including yours and mine. If one by one all go silent then all that will be left are the soloists.
-Vera Nazarian 

 


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