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Insourcing Outsourcing Grows Up

Written by: Jim Adams

Article Overview: 1. What is Insourcing 2. Why are companies doing this 3. How can I participate

Insourcing Outsourcing Grows Up

Insourcing Defined
Insourcing is when Company B entirely takes
over a complete process in Company A and
fully integrates its staff and processes into
that of Company A so that no one knows the
difference.
Why Insourcing
From the Insourcee’s perspective (service
recipient) it allows them to focus on doing
what they do best. Insourcing ensures that
qualified companies are keyed right into the
process in a way that keeps costs in line and
doesn’t slow down processing. Insurance companies
can focus on managing risk and increase
investment returns if they have CGI focus on
collecting and processing insurance claims and
new policy data.
From the Insourcer’s perspective (service provider
) it allows them to provide an addedvalue
service that they can charge more for.
UPS gets more money per transaction for computer
repairs than for delivering packages. As
well if you are providing a fully-integrated
service for a company, it is less likely to change service providers. Increase Revenue +
Consistent Revenue = Big Financial Advantage.
How can I participate
You have to do a serious analysis of your client
base.
1. Review the services you provide for them.
2. Understand what their real strengths are
and what can you do to help them focus on
those strengths.
3. What do you need to charge to make it
worth your while?
4. What is the client size that best suits your
company
You also have to look at your operations and
see if you can actually integrate your operations
into someone else’s. Remember that
your business has to look, think and operate
like their business. Then multiple that by 10
times and you’ll understand the investment
necessary to make this happen.
Global Partners
The Venture Catalysts have spent the
last six months developing an international
network of affiliates to assist our
clients in expanding overseas:
Oriel Partners—Brazil/Technology opportunities
in South America
Collabrant Asia—India/Retailing
Linkmen Corporate Strategies—Hong
Kong/Investment opportunities in China
Client News
Talk VoIP Canada provides Voice over Internet
Protocol phone services. The Venture Catalysts
is helping the company to establish its
sales agent program.
B Commerce is an innovative barter exchange
based in Toronto. The Venture Catalysts is
assisting their Canadian expansion through
strategic planning and the development of a
national franchise program.
Molyslip Canada helps Canadians save upwards
of 8-10% on their vehicle fuel bills with proven
fuel additives plus a wide range of friction reduction
products. The Venture Catalysts is developing
a marketing and sales strategy; to increase
their presence and sales across Canada.
TCS-NA provides engineers with high quality
thermocouple connectors. Based in Toronto it
is developing, with the help of the Venture
Catalysts, a strong marketing and sales
program in the Western Hemisphere.
Toronto Independent High School has developed
an innovative study program for non-
Ontario residents to earn their OAC. The Venture
Catalysts is working with the school to
develop an international sales force to introduce
the program to high school students
around the world.

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  Outsourcing ‘has become a mandate’ for recession-hit firms
  Top 5 Qualities in an Outsourcing Company
  38% of software development professionals use outsourcing
  How to Conduct Effective Outsourcing Interviews

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Related Forum Posts
Re: What is your biggest challenge? Today? - Outsourcing and time management, but I'm continually making progress.
Re: Should a start-up outsource early? - Hello and welcome to the forum! I agree with Ideasuniversity. Outsourcing is a good way to leverage your time, provided you keep within your budget! Best wishes, David H
Re: Using PR in the Franchise Business - Outsourcing in any business can be a good thing, provided you can afford it and do your due diligence on the company that you outsource to. It is very easy to be taken for a ride if you don't know what you are doing. MichelleJ
Outsourcing - I'm with Louis on this one. By outsourcing you can bring in experts to handle the things you are not good at with a much lower price tag than if you brought someone on full time. Outsourcing is also a way to transition from being a solo-preneur to having staff - you don't have to bring on a salaried worker right away.
Re: In-House or Outsource? - You can outsource a lot of things. Join elance.com for free and they will send you an article on 101 things you can outsource. Outsourcing majority of your tasks make you work smarter. I read that Bill Gates bought the ms dos from someone for $50,000. Now he made billions out of it. This is the beauty and power of outsourcing.


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