The next level of Outsourcing: Partnership Consulting
Years ago it was enough to say laconically: we are the outsourcing team. Now, it has combined with offshore, mistaken with freelance and, what is interesting for us, went to the next level: Partnership Consultation.
We, as one of such companies, saw the struggle of lack of information about such a business model. So we decided to be helpful for you and prepare the article to prepare you for such a service.
Read and use it for goods!
About Outsourcing: its risks and examples
Outsourcing is a whole different economy.
Basically, the project owner company adds the skills and knowledge (as known as force) of the other one. It goes for a long time period and includes the economy of resources. To control the quality of the process, outsourcing has identified the following service:
freeing up the customer’s production space;
reduction of time and required order resources;
the opportunity to book an opportunity will focus on your key tasks.
As a rule, companies turn to outsource companies to take advantage of special skills, efficiency, and flexibility of production. But it’s not the invention of the perfect business model. Let’s try to be more strict and see the risks honestly.
Outsourcing Risks and How to Deal with them
Risks are everywhere and it’s okay. It’s important to accept this fact and keep them in mind. We want to open all the cards about outsourcing risks. That why we will talk about them from this point of view:
Outsourcing is a kind of relationship.
Words will have stayed as words
If today’s business is dating then every part does the same thing: empress, listen and give a lot of promises. That’s why our tips for this risk will be as simple as comparing above: don’t let them break your heart. Here’s how to do it:
Check out their website and social media to see how they introduce themselves. If you are an outsourcing team, here’s an article for you about how to upgrade your website header;
Look on how they treat their ex – case studies;
Get to know the family and meet the teammates on the online meetups.
All this can’t help you avoid this risk on 100% but it will build the connection and you will feel safer.
We are from different planets
Don’t forget that is the long-distance relationship that includes: different time zones, culture and language barriers.
Thankfully, you paid attention to the first risk and tips, because they will help you here:
meetups with the team will show you their English levels and their attitude to different time zones;
case studies analyze will give you a picture of how many resources and what estimates you will have.
We are in this together
It will be good for both partners to understand that it’s okay to share the work, knowledge, and information about the inner world of project and business processes, system.
How to make yourself feel comfortable and protected in two steps:
Learn about partner’s data security;
Sign Non-Disclosure Agreement (NDA).
As we can see, outsourcing isn’t a fairy tale and has process nuances. Nevertheless, it has its happy ever after stories. Let’s see a couple of them!
Example of Outsourcing Practice
Apple, one of the most successful brands in the industry, is barely doing its own manufacturing work, but profits are growing. They transfer most of the laborious work of China and many other countries in the world to save time on production.
IBM was criticized by the New York Post for its outsourcing of hiring more foreign workers while the local job market is booming. Along with the negative public perception, the company’s performance has deteriorated significantly through outsourcing. Company
Profits had to decline steadily over the decades due to the effects of currency fluctuations, although this did not accurately reflect the company’s total profits.
But what could increase the performance even more than that? Who could be as an advisor, mentor, and help for every development step? Consultant in Partnership Consulting business model.
What is Partnerships and How it Goes with Consulting
Before we start, it should be mentioned that
The definition “Partner” has no meaning by itself
Everyone likes this word but do all of these “partners” are ready to match this term?
As a department of a big organization: sometimes these departments operated as limited liability companies wholly owned by the parent corporation. Managers are often called partners. However, these partners are normal employees, not co-owners, and they do not own shares in the consulting department or company.
As a part of a corporation: this category includes some of the most well-known consulting firms. Partners are consultants, but they do not own ownership. As a rule, part of their remuneration is based on performance, and the parent corporation often offers them a stock option.
Consulting form individuals: individuals or families. In this category, “partners” are also employed by consultants and do not have ownership of it. One difference is that a sole proprietor or family reserves are a very small percentage of shares for partners.
Consulting from partners: well, there are two types of this type of consulting. One of them is without awareness of shareholder value. To understand this model, you need to go back to its roots. The founders of the consultants strive to keep the shares as long as possible until they reach old age. Another type is with the awareness of shareholder value. Only this category is marked by the full entrepreneurial partnership. Oddly enough, only a handful of consultants use this model. The reason is the founders: A complete partnership model cannot be implemented in the context of a successful business unless its founding partners deliver a significant number of early-stage shares.
4 Main Advantages of Partnership Consulting
First of all, Partnership Consulting is a service that was required to make your business grow successfully. It’s attached to other services/departments to give you its goods. Here’s the 4 main of them.
Strategic
Consulting Partnership is a solution to getting sources to be strong enough for a competition. Creating a strategy with your partners could open for you the range increase in your product. How? Well, your partner can carry on those delivery steps that you just can’t handle. You can say that a partner is like an airbag for your strategy.
The Outsourcing Part
For example, outsourcing your marketing operations to a consultant or agency may improve your marketing performance if you do not have employees that know what to do in the PR and Social Media fields. Also, you can outsource the management and supply your IT system.
Supplying of Skills
With Partnership Consulting, you can kill two birds with one stone. You got the more experienced staff with new knowledge and skills for your project. At the same time, it gives you a clear vision of your team by comparing and improving skills on your project. Also, both teams will share their knowledge. It will affect the boost of your team’s professionalism.
The Business Substance
This advantage is useful for growing business. It’s essential to know what you have the focus – increase. Having the partner allows your employees to take this target as the goal – it would be your business substance. The main solutions for this goal will be the control of finance, sales, and production, according to the type of your business.