SOL Business Series 1.0
The first edition of the SOL Business Webinar Series held on Sept 29, 2020 for business executives and owners of small and medium scale enterprises across Nigeria, Dr. Olufemi Ogunlowo, GMD, Strategic Outsourcing Limited, who also hosted the session, expertly captured the current post-COVID situation when he opined that “the world will resume to a way of life that is not too far from what it used to be. And while we do not have a crystal ball to accurately predict what the new normal will be, it has become crucial for businesses to rethink and disrupt current processes and take advantage of technology to create the kind of future we want.” Critical to surviving and creating that future is the understanding of the cost element of a business and taking practical steps to reduce them. The issue of uncovering and understanding the cost element of the business was extensively and exhaustively tackled during the SOL Business Empowerment Series 1.0, with practical business case studies that threw vivid light on the subject. (You may refer to the session if you missed it). Given this, this article will pay close attention to the benefits of outsourcing various aspects of a company’s business processes.
One of the common misconceptions with leveraging outsourcing as a cost-cutting measure is that business owners, especially small and medium businesses, typically think of it as letting go of something. But that’s so far from the truth. Outsourcing is rather about retaining every value of a business at a lesser cost. To put this in business terms, it implies relieving your company from the cost burden of business activities that do not add value or require much human and material capital to get done, while retaining the value your business derives from those processes. Little wonder large corporations and big industry players continue to grow at the expense of small and medium businesses. This situation is similar to the concept of the rich getting richer due to certain principles they uphold while the poor get poorer due to the priority they place on some not-too efficient and unproductive principles. In case you think this is too good to be true, here are specific examples of where and how outsourcing can help your organization reduce cost without losing any benefits.