The Herman Trend Alert|
February 15, 2000
Outsourcing Will Increase
320 days until January 1, 2001
For various reasons, employers will outsource more and more tasks customarily performed by regular employees. Corporations, not-for-profits, government agencies, and educational institutions are all climbing on this bandwagon.
Part of the impetus comes from the labor shortage. When you can't find the people to staff a particular function, it becomes prudent to simply outsource the function and put the problem in someone else's lap. If another function needs a lot of staffing during certain periods, but not during other times, letting an outside contractor worry about adjusting to the fluctuations makes sense. If high levels of expertise or specialization are needed, contracting with a firm staffed by experts assures support by people who know what they're doing.
With these rationales, and others, in mind, employers are finding more and more tasks to outsource. With support functions handled by outsiders, leaders can concentrate their energies and resources on the organization's principal work. The intensified focus on the core business facilitates greater return on investment, greater return on resources.
Security, maintenance, transportation, and in-house food services are typical outsourced functions. More employers are outsourcing payroll, benefits administration, records management, training, and even employment and exit interviewing. Management information systems (MIS), shipping and receiving (including mailroom operations), and helpdesk services are hot industries for outsourcing and insourcing (placing outside employees inside the client workplace). A number of employers outsource the entire workforce through employee leasing.
While these moves benefit the employer, there's another side to this picture. The expansion of the outsourcing/insourcing practice stimulates the growth of emerging industries of providers of the services being contracted. As new firms are formed to provide assistance ranging from concierge services to leased executives, creative approaches to doing business are developed. Some of the new firms are virtual, some are home-based, all are relatively agile and highly responsive to clients, trends, and technology.
This developing sector of our economy will grow rapidly, moving at different speeds through the maturation process. Most businesses of this type will undergo constant change, continually evolving, defying static descriptions and consolidation. This arena will be fluid for quite a while.
Invitation: You are invited to participate in a survey on workplace and workforce issues. It will just take a few minutes and we'll reward you with a free gift. Just go to www.herman.net/survey.html. Thanks!
© Copyright 1998- by The Herman Group, Inc. -- reproduction for publication is encouraged, with the following attribution: From "The Herman Trend Alert," by Joyce Gioia, Strategic Business Futurist. 336-210-3547 or http://www.hermangroup.com. The Herman Trend Alert is a trademark of The Herman Group, Inc."
ONLY A FEW DAYS LEFT---JOIN JOYCE AT EDISON AWARDS' MEET THE INNOVATORS FORUM
A DYNAMIC SPEAKER FOR YOUR BOARD OR ASSOCIATION MEETING
BE RECOGNIZED AS AN EMPLOYER OF CHOICE® IN 2014
To read this Herman Trend Alert on the web: http:// www.hermangroup.com/alert/archive_4-16-2014.html
Herman Trend Alerts are produced by the Herman Group, strategic business futurists, Certified Management Consultants, authors, and professional speakers.
New subscribers are welcome. There is no charge for this public service. The Herman Trend Alert is read by over 30,000 subscribers in 87 countries, including other websites and printed periodicals. Do you enjoy receiving this weekly e-mail update? Contact us about our co-branded Herman Trend Alert service. Click here to sign up for the Herman Trend Alert.
7112 Viridian Lane
Web site design by WebEditor Design Services, Inc.