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Outsource Non-Core Processes for a Competitive Edge

Aug 17, 2007
Business process is the skeleton of a certain business activity. It involves the description of different tasks and possible outcomes that are associated with a specific business activity. It is essential in crafting the business goals of a certain corporate organization, which is clearly defined in the organization's business strategy.

Business process is classified into three categories, which are as follows:

- The management processes, which is followed to run the operation of the business and comply with all existing yet relevant requirements.

- The operational processes, which is followed in delivering the business value to clients, and is considered as an integral part of a corporate organization's core business.

- The supporting processes, which is followed to support the core-based processes. It includes accounting, information technology (IT) support, and recruitment processes.

Being the skeleton of your organization's business activity, you must give utmost importance to your business process as a whole. This is extremely important since the success or failure in achieving the goals of your business will largely depend on the process that you have followed, together with your business strategies and plans. Thus, without an effective business process, your business is as good as dead when the time comes.

Realizing the importance of a business process in achieving their business objectives, there are companies that prefer to outsource some or all of their business process (most specifically the non-core processes) to third-party organizations.

The main motive in outsourcing a business process is to allow the business to invest most of their time, financial, and human resources into core activities and focus on building effective strategies, which will fuel the growth of the company.

Since the global marketplace is fast-changing and highly-competitive, your business must concentrate on improving productivity while trimming down unnecessary costs. Non-core business processes are being outsourced since the tasks involved in these processes consumes time, essential resources, and energy. Thus, outsourcing these non-core business processes will help you achieve a cost-efficient system.

Non-core business processes that can be outsourced range from production to customer service to support functions (such as software development). Most companies that are outsourcing their business process are from Western countries and they are delegating the work to outsourcing firms located offshore, especially countries located on the Eastern hemisphere, such as China, Philippines, India, and Malaysia.

While more and more companies are becoming comfortable with outsourcing their business processes, outsourcing most of their learning and development functions is still a new approach to many learning professionals.

Moving the training and learning model that is completely in-house to one that will be handled by other individuals outside the business is a big leap. However, as mentioned earlier, it is important that these processes receive equal importance and consideration for the benefit of your business as a whole.

Thus, despite the fact that business process outsourcing as a new approach, many training and learning professionals are starting to get the grip of the new system and subsequently will follow the outsourcing trend.

Business processes, especially the non-core ones, need to be given equal importance and attention to achieve efficient business operation. Outsourcing these business processes will not be a waste of time and financial resources, but rather a strategy to be followed.

Surviving in this highly-competitive global marketplace is not as easy as you think. You need an option that will work to your advantage - and that is outsourcing.
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