{"id":5901,"date":"2018-05-22T18:53:26","date_gmt":"2018-05-22T18:53:26","guid":{"rendered":"http:\/\/somametrics.com\/clone\/?p=5901"},"modified":"2021-06-15T23:44:31","modified_gmt":"2021-06-15T23:44:31","slug":"advantages-of-outsourcing","status":"publish","type":"post","link":"http:\/\/somametrics.com\/clone\/advantages-of-outsourcing\/","title":{"rendered":"Giants like General Motors Know the Advantages of Outsourcing"},"content":{"rendered":"

G<\/strong>eneral Motors Has Not Made a Car in 70 Years<\/strong><\/h2>\n

And I respect GM for that.\u00a0 It would be foolish of them to not know the advantages of outsourcing and do the whole job.\u00a0 Let me explain.<\/p>\n

GM does what is strategic and outsources the rest \u2013 as it should.\u00a0 The company designs cars. It details the specifications for its powertrains, brakes, lights, electrical systems, tires, etc. but \u2013 and this is a big but \u2013 it doesn\u2019t make any of them. It buys its tires from the big tire manufacturers. It buys its batteries from the big battery companies. It buys its brakes from the best-of-breed brake manufacturers. But it doesn\u2019t even try to compete with companies that are superb at making the components of a car.\u00a0 Instead, it buys from them.<\/p>\n

To Get the Advantages of Outsourcing you Must Understand Core vs. Context<\/strong><\/h2>\n

GM understands the difference between core<\/em> and context<\/em>. Core<\/em> are functions that make a genuine difference in the marketplace; context<\/em> is everything else. Context<\/em> are the things that need to be done well but don\u2019t deal directly with marketplace success.<\/p>\n

Office buildings are context.\u00a0 Accounting is context.\u00a0 Designing windshields is core but manufacturing them is context.<\/p>\n

Successful companies intuitively recognize the difference between core and context. They focus their energies on what really makes a difference and they outsource the rest.<\/p>\n

Marketing Strategy is Core; Marketing Operations are Context<\/strong><\/h2>\n

Only management can decide which markets it wants to pursue and how it wants to pursue them.\u00a0 Only management can determine its product and service pricing. Only management can develop the company\u2019s marketing strategy. Its marketing strategy is core.<\/p>\n

But the company is not going to be recognized in the market for its excellence in installing and operating SalesForce.com.\u00a0 No company will generate great profits because it did a good job scrubbing its email lists. The company\u2019s stock price will not budge because it wrote a good piece of marketing collateral that an agency could have written.<\/p>\n

A prudent company will focus its energies on marketing strategy and outsource its marketing operations.<\/em> The reason is simple. One of the advantages of outsourcing marketing operations is that companies that focus on marketing operations need to be expert at it.\u00a0 They need to know how to write compelling copy, layout a persuasive website or brochure, and deliver the corporate message cost-effectively through a wide range of channels. They need to understand the full range of digital software sales and marketing tools and know exactly where they fit in a campaign. Some of these tools are best for small companies and others are best for large companies. Marketing operations experts know which is which.<\/p>\n

Most companies, particularly small and medium-sized ones, can\u2019t afford to develop this expertise \u2013 and they shouldn\u2019t. Just as those companies outsource their legal work to legal firms, outsource their accounting work to accounting firms, and outsource their janitorial work to janitorial companies, they should also outsource the implementation of their marketing strategies to boutique firms that live and breathe this sort of work.<\/p>\n

It just makes sense.\u00a0 Companies should only do what they do best and makes a difference in the marketplace. The rest should be outsourced.<\/p>\n","protected":false},"excerpt":{"rendered":"

General Motors Has Not Made a Car in 70 Years And I respect GM for that.\u00a0 It would be foolish of them to not know the advantages of outsourcing and do the whole job.\u00a0 Let me explain. GM does what is strategic and outsources the rest \u2013 as it should.\u00a0 The company designs cars. It … Read more<\/a><\/p>\n","protected":false},"author":4,"featured_media":5902,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"generate_page_header":""},"categories":[30,1],"tags":[],"yoast_head":"\nGiants like GM know the Advantages of Outsourcing and You Should Too.<\/title>\n<meta name=\"description\" content=\"Successful companies like General Motors intuitively recognize the advantages of outsourcing. 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