Outsourcing is mainly used by companies as an effective way to cut significant costs while unpacking the bulk of their essential but non-core tasks to other parties. That was the equation.
But business process outsourcing can be so much more. Used inventively, outsourcing can not only save a company millions in costs, it can also bring in more advantages and business solutions as it turns a business’ weakness into an advantage. Such is the case for now world-leading PC maker Acer.
Acer: Transforming Business Models With Outsourcing
From the ’90s to 2000s, the PC Market was dominated by two industry giants: Dell and its rival Hewlett-Packard. When the Taiwanese computer manufacturer Acer first tried to crack the U.S. market it failed to make a mark.
At the time, Acer’s business model was a hot mess. One department manufactures for other brands while another silo creates similar machines under the company’s own brand name. An unhealthy internal competition was happening within the enterprise, and Acer realized they needed to focus their efforts elsewhere. The executives knew that the company’s strength lies in branding and marketing. So, they opted to focus more on creating laptops for consumers. Going with capability sourcing, they passed manufacturing duties to third-party organizations to enhance their own production processes in 2000.
Thanks to outsourcing leveling the playing field, Acer managed to match up against the industry leaders. The small, little-known brand finally cracked the top five in PC market shares in 2003. The move did not only upgrade Acer’s manufacturing, but it also allowed the company to employ a significantly smaller workforce compared to its competitors. A factor previously considered as a weakness is now one of the strengths the company banks on. This massive advantage led to faster growth in sales and allowed Acer to close in on the top spot of market share rankings, getting up as high as the 2nd largest share in terms of market share during 2009-2010.
The Benefits of Outsourcing
Acer used outsourcing methods to level the playing field against the industry top players. It paid off, as the once little known PC brand is now considered one of the major names in the industry.
Outsourcing is such a powerful business tool, one capable of completely revamping existing business models. If smartly incorporated into a business, outsourcing can catapult even the smallest and unknown brands to the upper echelons of industry.
Obviously, outsourcing is not an immediate fix. Important factors such as being fit to the business and the quality of BPO services should be considered when looking for a provider.
Seriously considering how to incorporate outsourcing to your business?
Get in touch with Anderson Group BPO Inc. Check our services pages and reach out to us. Let’s talk about how to improve your business through outsourcing.