April 15, 2010

outsourcing for SME

it s interesting to see if SME need outsourcing

in our discussion we had debate on this topic. as the majority viewpoint, Waverider is a too small company to make outsourcing. it s not as big as Nike or addidas, if doing outsourcing, the compnay might not reach economic efficiency. however, as some pf us emphasised, we put this in our oresentation.

to me, i think, small company like waverider can be the one who produces for big companies. good example can be japanese music instrument manufacturere in the 80s. that time those apanese manufacturers supplied parts to fender and gibson. then they began to imitate the models. with over 20 yrs development, now japan has big brands like ESP and Bacchuse. so that we can see actually waverider can be the supplier first then expand with development.

just my viewpoints


- 3 comments by 1 or more people Not publicly viewable

  1. Can I put something in here as I really happy to discuss this point with you. Outsourcing is just about everybody: from entrepreneurs in the SOHO (small office home office) segment to small and medium enterprises (SME), to large businesses and empires with diversified interests and varied business processes. Every business benefits hugely through outsourcing because technology is changing so fast, it has to be leveraged and used to the maximum to deliver competitive advantage to a company.

    For the question when should we outsource. It’s no matter with the size of your company; it depends on the situation as follows:
    When you’re losing focus on your core business because you’re too busy handling operations

    When you’re facing a time, money and human resource crunch

    When you have a mission-critical project that needs all your time and energy, plus specialized skills which aren’t readily available

    When you’ve got to be the first into the market to gain the edge

    Ok, for example, if you meet a big chance now. But you have to outsource the specialized skills which aren’t readily available now. But it really worth to outsource as it can help you to capture this chance and realize the continue improvement. Will you give up to outsourcing just because you are a small size company?
    Furthermore, we can get the external knowledge from outsourcing as well. There is also no matter with the size of your company.
    As Pat Wallington Xerox said “I view outsourcing as part of the transformation strategy”
    Just for discussion.

    15 Apr 2010, 23:39

  2. I would like to add that outsourcing is needed at all times however it depends on the organization’s strategy, vision and the industry it is in. Furthermore outsourcing helps an organization to utilize the potential of the resources it has and concentrate on continuously improve on its core activities of the business.

    Outsourcing can be as small as canteen shop in the business to as large as the engines for some companies (waveriders could do that as well). Imagine if waveriders decides not to outsource even its canteen operations, as food is not the core of waveriders do and it is only needed at some point in the company, what would the cook or other staff do when the lunch time is over???While on the other hand if it is outsourced to a catering company then that company can utilize its resources more efficiently by taking on contract from many businesses as it is the core business of the company.

    Furthermore it is quite possible that waveriders would have to pay pension, national insurance and entitled holiday plus extra staff to cover when the catering staff is on leave, therefore it makes it financially and strategic sense to outsource such operations.

    16 Apr 2010, 13:41

  3. Hey all;

    I think that Outsourcing can be a powerful advantage and it is not size related. Both comments above include detailed explaination to that.

    I would rather talk about WaveRiders to become working as an outsource company. From where they are now; I don’t think it would be beneficial to change whole organisation. There are very good example companies out in the technology market who are focused on R&D and selling their “Blueprints” to other companies. But it will be hard to sell your R.I.B.s as raw materials to other companies or agencies I suppose.

    Cheers…

    16 Apr 2010, 17:24


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