Sourcing is specialization. A system by which a process, function, good or service is provided to a firm by a third party, sourcing allows a company to do what its good at.
It is much more than contracting out – a true sourcing approach means:
- A Process based on strategic decisions
- An Opportunity to transfer resources and ideas
- A Tailored service for the customer organisation
- A Lasting business relationship
- The Ability to share and manage risk
- The Understanding that a customer organisation retains accountability for the service
The modern business world is an sourcing economy, where a firm can concentrate on what its good at while working alongside others to complement a firm and allow it to deliver its true potential. Why do something yourself, if someone else can provide the service faster, cheaper and to a fantastic quality (after all, that is what they specialize in). Firms are focusing more on their core business to deliver the best possible product to their customer, creating a rapidly growing sourcing sector.
Don’t think sourcing is always global, often it’s local with firms working together in hubs and in local communities. But the idea remains the same, do what you are best at and work with people who are the best at what you need.
Sourcing works! Utilising superior sources of knowledge and diversified and specialist skills allows for greater efficiency and allows companies to achieve their full potential. sourcing is being free to focus on what you are good at, sourcing is the ability to grow and succeed, sourcing is specialization.