Years ago, foreign or
“offshore” outsourcing became a frequent go-to for many U.S.
companies, particularly the big and mega-big corporations. The primary reason
for the popularity is apparent: developing countries offer large populations of
individuals who will work for a fraction of the cost of American workers.
However, offshore outsourcing is
not always the best solution for every company’s logistical needs. Local
outsourcing, as the name implies, is contracting out business tasks closer to
home. Many small businesses have found local outsourcing to be a strategic
means to create and deliver products and services without having to manage the
burden of costly infrastructure.
Why do companies choose to outsource?
No one person or even one team
can do everything, at least not well. To continue to grow and be successful, a
small company will need to make decisions about where in-house talent will
focus and what tasks should go to outside suppliers.
In the beginning, your small
company might have been able to manufacture and package all your products,
store them in a small space, deliver with a few trucks, and keep customers
happy. As your company grows, however, the complexities and costs of these tasks
take on a life of their own. Local outsourcing can be the solution,
particularly for handling the repetitive, non-strategic activities of the
Some of the top reasons for
considering local outsourcing include:
revenue. Making improvements such as
greater flexibility and responsiveness, better product quality, and more time
for creating additional or improving current products or services.
capabilities. Putting an additional focus on
innovating, taking advantage of emerging technologies, gaining access to
outside skills, and increasing capacity.
● Reducing costs. Lowering
operating and capital investment costs, managing or reducing payroll, and
moving from a fixed to a more agile variable cost model.
If your company is hoping to
scale business operations without a significant increase in cost or a sacrifice
in quality or customer service, it’s time to take a serious look at local
What should you look for in an outsourcing company?
In general, the primary qualities
you will be looking for in an outsourcing company is one that is either skilled
in a capability that you’re not — or one that can do what you’re doing now at a
lower cost. Look for a local outsourcing company that has demonstrated bench
strength in your industry or with businesses that have similar operational
Additionally, look for a local
outsourcing provider that has a diverse and stable customer base. This will
give you greater assurance that once you make the switch over, you will be able
to enjoy a long, fruitful relationship with a trustworthy, reliable outsourcing
Another crucial factor to
consider in an outsourcing partner is the workforce. Ideally, the outsourcing
provider will have a large pool of skilled and dedicated workers who are able
to handle your current and future needs. Finally, make sure the outsourcing
company you choose has experienced management, strong communication skills, and
a stellar reputation in the community.
you’re ready to partner with a reliable Cincinnati outsourcing provider with
decades of experience, talk to the experts at Ohio Valley Goodwill’s Industrial Services Division.
A partnership with Ohio Valley Goodwill not
only benefits your business, but it also supports our non-profit mission to
provide meaningful employment opportunities to individuals with disabilities.
We’ve worked with some of the top brands in Cincinnati, Northern Kentucky, and
Southeast Indiana to provide quality assembly and kitting services, packaging,
order fulfillment, and inventory management. Want to learn more? Contact us for a free quote and take a
tour of our Cincinnati-based facilities. We’d be happy to speak with you and
answer your questions!