What is Outsourcing and Why do it?

According to Michael Zimmerman with Smart CEO, “Sooner or later, every business owner must ask the question: “Do I really want to outsource this process, or can I find a way to keep costs in house?” To some, it’s a matter of job preservation. To others, strictly profit. But whatever the litmus, the decision will have serious consequences- for owners, for employees, and for customers.” But, “outsourcing” doesn’t always mean “off-shoring” and “on-shore” doesn’t always mean “U.S.”

Outsourcing includes all the functions an organization could have chosen to scale up to do internally, but chose to buy from other providers instead. Many marketing services, for example, are routinely purchased from freelance writers and designers, advertising agencies, BPO providers, and strategic consultants. These services are outsourced for many reasons, including insufficient volume of steady work to keep full-time staff productive year-round, inability to attract the highest caliber of employees to job functions that may be peripheral to the organization’s core discipline, and a desire to avoid distraction from the core competencies that define an organization’s competitive distinction.

And the U.S. is not the only country outsourcing — in fact, we’re not even the biggest player. Globally, the outsourcing market amounted to $104.6 billion in 2014, with Europe, the Middle East and Africa leading the charge, followed by the Americas and Asia.3 To help put that number in perspective, $104 billion would be enough to build New York’s One World Trade Center, twenty-seven times. Some estimates, including one by market information provider IBISWorld, put the global number even higher, at $136 billion, funding over 900,000 jobs at 162,000 businesses. It is projected that outsourcing will be well over $200 billion by 2022 just for the US and over a $ Trillion dollars globally.

On the positive side of the equation, outsourced suppliers are often more flexible with their availability, offering services around the clock and even on weekends and holidays, often at “normal” price levels. The level of available talent increases, too, as geography expands, simply because the pool from which talent can be sourced expands from “commutable” to global. And because many outsourced services can be virtualized, they may be accessible from any internet-connected device, even while mobile.

Cost containment is a major driver in most outsourcing decisions, but many other benefits exist as well, including improved efficiencies, greater sense of business continuity, mitigating risk by leveraging specialists, and freeing staff to focus on core services and strategy.

Floor-Ready Services is your trusted Outsourcing Partner. Floor-Ready Services has been supplying outsource services for over 20 years. As an Outsourcing Partner, Floor-Ready Services improves our partner’s profits and quality the marketplace. We allow you to focus on your Core Competency, which is selling more products, while we focus on ours, which is getting your products to market quicker and more economically.
Floor-Ready Services receives, processes, picks, packs and ships millions of items annually for some of the top manufacturers, retailers and organizations in the world. Floor-Ready processes: Apparel, Accessories, Hardgoods, Manages Returns for clients, Provides Quality Grading, Assembly of Goods, Dis-Assembly of Goods, Kitting, Display Build-Outs, Labeling, Re-Ticketing, Hanging, Folding, Pricing, Packaging and any other services to give our partners speed to market, flexibility and cost reduction. In many cases our services can cut your processing costs by up to 50%. We specialize in these processes and only use experienced, well trained full time labor allowing us to eliminate valuable time to get your products to market.


Todd Sides-VP Sales & Marketing
tsides@floorready.com Mobile Number: 828-708-8102