- June 1, 2015
- Posted by: pishola
- Category: ICS Insight
Nigeria is at the precipice of a historic new dawn. With the successful conclusion of the 2015 general elections, Nigeria has a unique opportunity to achieve her full potential and that is probably evident now more than ever before in our history.
This is therefore a good time to strategize and align corporate strategy to leverage on new possibilities from the policies of the incoming government. Which ever way government policy direction heads, Nigeria is in dire need for economic growth through massively improved productive capacity and employment generation. It can be taken for granted therefore that businesses which are built to contribute to enhancing national productivity will be favoured. The real sector, finance sector, oil and gas, agriculture, maritime and aviation, transport and finance sectors are some of the critical sectors where immediate focus is suspected to fall.
One such industry is the outsourcing industry; owing to the fact that outsourcing allows businesses to grow at a faster and more efficient pace than they would have been able to manage without it. Since the world is now a global village, global competitiveness is at its peak. If national businesses are so survive, they need to start paying serious attention to smart, 21st century business strategies like outsourcing.
Outsourcing allows businesses to leverage competitive advantages without necessarily owning or bearing the full cost of managing such competitive advantages. By this we mean that companies collaborate to achieve greater success with each party providing value – the value needed to achieve specific tasks which impact significantly on the overall goals and objectives of the business. Instead of going it alone, and essentially carrying all the attendant burdens and costs, company A is able to leverage the expertise of another company B while transferring the cost of such capital expenditure that will support the expertise to company B. Ofcourse company B provides such services at a negotiated premium to company A. Usually, the promim paid to company B represents only a fraction of what it would have cost company A to leverage that expertise all by itself.
The value of outsourcing to business outcomes is evident in numerous aspects. It provides increased efficiency to businesses, owing to the fact that it brings years of experience to bear on delivering expectations in targeted areas of the business. Outsourcing also allows companies to concentrate on their core business, resulting in greater productivity and expansive growth.
Outsourcing also eliminates that need to invest on massive technology and infrastructure. This promotes the release of massive sums for investment into other core areas of the business thereby multiplying business growth. It also provides a unique time zone advantage. This is a much touted advantage of outsourcing. It allows companies to use the differential between their time zone and that of their partner to their advantage. Imagine getting your job done while you are closed for the day only to wake up to your finished servie being delivered the next day.
It also allows businesses to better manage organizational complexities while making business transitions at zero or minimal loss. This business model helps business leaders (managers) free – up their resources, improve flexibility, gain access to capital, access new markets, or change the rules of competition in their industry.
Until recently, companies had limited expectations of the great values outsourcing offers as a business solution; as most buyers of this model wanted cost savings, greater efficiency and streamlined operations. But today, organizations in both the private and public sectors are looking for more as they battle with unprecedented challenges in the business ecosystem both locally and internationally including economic uncertainty, market complexity, hyper-competition, changing consumer expectations and regulatory pressures.
Outsourcing is no longer just about cost saving; it is a strategic tool that may power the twenty-first century global economy, and Nigeria as an emerging market should not play a passive role in this global transformation. It can increase productivity and competitiveness in multiple folds as leaders can no longer afford to view outsourcing as a mere business tactic; it is now essential to remaining competitive on the world stage.
Outsourcing helps build better businesses, stronger economies and a more prosperous way of life. This advantage is one of the things that will be discussed at the 2015 Outsourcing Expo. Planning to attend?