Why outsourcing is a top winning business strategy

Martin M. Lwanga

What you need to know:

  • If we are to agree that outsourcing makes business sense, especially when it comes to cost cutting and dealing with less employee relations headaches, why then do so many shun it?
  • This was the case when Magezi took on a CEO job of one failing organisation that was deep in debt.

“Why don’t we outsource office messengers?” Mpewo asked his boss, Banji, who was often complaining of high overhead costs arising from a huge payroll.
Banji often wondered if the bank needed all the staff. In fact, he was always pointing out how idle most of them were during the day. Banji would never think of doing away with these idle staff, even as the bank struggled to meet its payroll.
Mpewo who had just enrolled in an Executive MBA programme happened to have a different opinion though. In one strategic management class, a professor had said: “A 21st century organisation should only have those on payroll who are doing its core business. The rest of staff should be outsourced. ”
Enlightened with this revelation Mpewo was now on a mission to convert his boss. “We can outsource everything,” he argued. “Drivers and cars should be outsourced. So goes with housekeeping from a cleaning company! This will allow us focus on our core business of serving customers.”

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