Trowbridge is the CEO and managing partner of the Trowbridge Group, a global sourcing advisory firm whose clients include Mervyn's, BlueLinx and Sprint PCS. He was interviewed by Cynthia D. Webb.
Q: Why is outsourcing appealing to midsize companies?
A: A survey conducted by International Data Corp. notes that midsize companies are increasingly examining outsourcing as an option. Of those surveyed, 77% of respondents stated cost-savings to be the key reason for outsourcing operations. Middle-market companies are clearly examining the option to outsource IT services, finance and portions of human resources. Accordingly, there is a wide range of emerging providers whose services are being tailored to meet the needs of the mid-sized market.
Q: What is driving this phenomenon?
A: Consistently, and not surprisingly, overhead reduction is the primary reason for outsourcing. Additionally, outsourcing improves service quality, streamlines processes and frees up internal resources. It also insulates companies from the continual investment to maintain state-of-the-art systems and processes.
Q: What impact does outsourcing have on business and consumers?
A: Outsourcing reduces costs and often provides access to new capabilities that affect both top- and bottom-line competitiveness. The impacts to businesses include lower costs, improved productivity and increased flexibility, all of which contribute to the consumer receiving a better product or service at a cheaper price. |
