RESEARCH TRIANGLE PARK, N.C. (TheStreet) -- Organizations have been under pressure for decades to reduce costs, and the pressure has been increasing steadily as the economy struggles and worldwide competition increases. It is no longer enough to examine "traditional" sources for performance improvement. To be competitive, companies must also think differently to change how they work.
|Businesses used to paring costs by outsourcing functions such as manufacturing should consider looking at less traditional areas as well, including legal support.|
- Business processes
- Core competencies
- Cost structure
- Investment in resources, projects and people
- Strategic relationships
- Vendor and supply-chain management
- Customer-related activities
- Change the way the customer thinks about business processes; management, control and oversight; cost control; use of technology; and business models.
- Learn from others' success via best practices; technology improvements; and business process assessments.
- Identify opposition points to outsourcing, such as the traditional "We've always done it this way"; entrenched "Our expertise is too important to be external"; attitude that internal equals safe, as in "If it is in-house, it is less risky"; and control issues such as "We need to see it getting done."
- Understand that increasing costs come from: the addition of more resources to the same processes instead of evaluating current processes to look for better, more efficient ways to do things; assumptions on what can be done based on historic perspectives, not current options; and failure to examine business processes to gain deeper understanding of what is important.
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