Rule #1 - Ally & Conquer
Global competition, a scarcity of capital and looming skills shortages are becoming major impediments to business success. Don't let them stand in your way. Companies that prosper in the fast-paced future will be flexible and adaptable in order to capitalize on opportunities quickly.
Outsourcing, contracting and partnering - that is, tapping outside resources rather than building them internally - let you morph into whatever company is required to capture fleeting opportunities with smaller risks and lower up-front costs.
Contracting out work to companies or individuals, locally or abroad, can help you expand while focusing on what you do best. Any task that isn't one of your company's core competencies - such as human resources, IT, distribution, sales or marketing - could be outsourced.
Overlook the opportunity and you may lose ground: a recent study by Hewitt Associates, a human resources consultancy, found that double-digit-growth companies "are more likely to have formal outsourcing strategies, make greater use of outsourcing and achieve a higher ROI from outsourcing." Plus, a report by the McKinsey Global Institute estimated that every dollar a U.S. company spends on offshoring results in US$1.12 to US$1.14 in value.
"The reason offshoring has spread in North America is because it gives corporations the flexibility of managing up and down business cycles," says Alan Middleton, executive director of the Schulich Executive Education Centre at Toronto's York University. Using outside resources allows you to run lean yet bulk up when necessary.