Sunday, 27 April 2008

Outsourcing Non-Core Competencies?

Last week I was involved in a conversation which encouraged me to think about the outsourcing of non-core competencies. This particular conversation revolved around advertising, more specifically the design of posters, newsletters, brochures and other time sensitive marketing materials. The firm that formed the basis of the conversation has a diverse portfolio of businesses but no in-house designer. As a result most of the abovementioned materials are designed and produced by local graphic designers. On face value this seems like the sensible approach, given the increasing emphasis of ‘do what you do best’ strategies proposed throughout business press. However, like most things, one needs to dig a little deeper and place this pearl of wisdom within the context of the firm.

Graphic designers serve their purpose creating and publishing materials far and above the quality and creativity of a desktop publishing software system, I should know I am a web designer. This is why I was surprised that their firm was going to send this non-graphic designer to a short course focusing on graphic design. I questioned the motives of the firm and it was her reply that I found interesting. She explained that they often reuse materials for a couple of years or seasons and all they need to change are the dates, prices and other text information.

I know that even the smallest changes in a web site or piece of graphic design work are expensive. The designer must access the source files, re-orientate themselves with the previous work, make the changes, submit to the client for approval, and then complete the appropriate administration. For a small change the cost and commotion is enormous.

The diversified firm wanted to reduce these costs and time delays by bringing this service in-house. They did not want to hire a full time graphic design and their equipment but wanted to find a happy medium and not be at the mercy of their graphic designers when changes were required.

This conversation showed me that you need not apply business strategies blindly but rather explore the firm specific processes, constraints and requirements to see if the strategy is applicable. In this case it was not a black and white decision regarding the outsourcing of advertising but rather the degree to which it would provide the most value to the firm.

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