There has been a time when companies have relied on the resources available to them at the time in conducting their businesses, no matter how tedious may it be. Here enters the idea of outsourcing and it has saved the day for many companies already, ridding them of tiresome administrative and operational processes and providing them with a level of work quality that exceeds expectations. The outsourcing industry has already proven itself to be helpful for all types of businesses, from small to large enterprises. With today’s generation of companies, it is highly possible that more than half are already engaged with an outsourcing partner, be it for their human resource tasks, sales and marketing, or for their back-end and more technical processes such as IT.
With the growing demand for outsourcing and for different type of office tasks being outsourced, companies are now expanding their service offerings, encompassing almost all processes within a company, as well as broadening their geographical reach. They aim to become a one-stop shop for their clients so as to prevent their clients from the hassles of dealing with many outsourcing partners.
For outsourcing companies to be able to expand their service offerings, there are a number of options that they can take. As the month of June unravels, the outsourcing industry is faced with news of partnerships and acquisitions.
One way for them to be able to meet the demands of the market is they seek partnership from a company that can help them provide a particular service. Metin Mitchell & Company Ltd. released a press statement last Sunday, June 12, 2011, that they have entered into a partnership with Talent2 International Ltd. (ASX:TWO) to provide services to their existing clients and future clients alike. Metin Mitchell & Company’s co-founder Dominique Russo pointed out that due to the rapid movement in business, companies lack the necessary resources to address their difficulty in finding qualified employees, which is why this partnership with Talent2 International will help them provide their clients with human capital solutions and organizational assistance. Another instance where collaboration between two companies is done to offer new services to the market involves ConnectYourCare and CIBER, Inc. (NYSE:CBR). The partnership was driven by the aspiration of both companies to provide their clients with new offerings under their healthcare account management solutions.
A second option that can be taken by companies seeking for expansion is to perform an acquisition. Most of those outsourcing companies who have performed acquisitions in the past have mentioned that their reason for acquiring a particular company is for them to be able to expand their current service offerings and reach. Capgemini (EPA:CAP), a France-based outsourcing company whose reach extends in countries across the globe, made an announcement concerning the on-going negotiation between them and Prosodie. Capgemini mentioned in their press release that this particular acquisition is a major step for the company in terms of client solutions as this will enable them to offer front-office transaction solutions.
Companies are not limited to these two options to put their want to expand into action, but it can be said that these two options are the most common among companies in the outsourcing industry.
Author: Jamee C.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.