Is bigger always better?

So Westfield has finally opened its doors, to mass consumer frenzy. 265 shops, 96 escalators, 20 million projected visitors per annum, 50 places to eat, with 73 awards between them. Big numbers. Big venture. But is bigger always better?

The outsourcing industry has its Westfields – big players with well known acronyms dominate the headlines and bank the majority of the cash flowing from outsourcing deals worldwide. Does that mean that they are a safer pair of hands when selecting a provider? Does their extensive menu of services, deep industry knowledge in a many markets, vast workforce, global network of delivery centres and ability to leverage economies of scale make them the logical choice for your outsourcing opportunity?

The answer depends on a number of factors.  Here are some questions to ask, which will help you decide whether the industry giants are right for you. 

1. If they were to print out a list of their customers in order of revenue or profit derived, where would I appear on that list? This is an indicator of the level of focus that you will receive once you are a customer. If you are a “must have” brand in a priority industry then you will get more attention, but only so long as you retain a market leading position and the industry remains in their spotlight.
2. Who do the brands that I respect work with? Working with a provider who has a deep insight into your market does bring benefits and can fast-track industry best practices into your business. On the other hand, any differentiating work they are doing with competitors will be protected by IP and confidentiality provisions and you will have to ensure that your contract affords you the same protections, which dilutes this potential benefit.
3. Are my services about slick scale or specialist skills? If you are outsourcing services which benefit from a highly proceduralised “factory” approach, where industry service standards are followed to a high degree of compliance then the larger suppliers have the scale and experience to be able to offer this. If your services require bespoke attention then niche, specialist providers may represent a serious option

To find out more about this or any other outsourcing topic, drop us a line. We are always happy to share experiences and talk through your sourcing challenges.