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Outsource non-core functions to win

How interrelated are the functions of any department in an organization? Are they interlinked? How do they function individually and as a cluster of interdependent functionalities? How can one manage all of them, or a few of them while outsourcing non-core-related work to win their game? Let us understand here –

It’s like this: imagine yourself as the head of a corporation, even before ideating the very purpose, you would tend to understand the product/ services, what you look at solving to give back to the target audiences, capturing the percentage of market share, the way forward plan and also the expansion strategies. So, how could you understand the functionalities to achieve each of these objectives and to bank on purposes making it stronger and to strengthen your base and building a strong financial report through the future, remains a million-dollar question.

Sounds bizarre, isn’t it? Well, it is absolutely not if you understand the crux of it. Let us start with startups – founded by both young and old alike, as an entrepreneur while ideating, everyone understands and thinks that it is manageable single-handedly and grow beyond expectation and realize their dreams to reality. But in today’s rapidly growing world where globalization is the mantra and almost the entire world is reflected as a global village. Banking on our enthusiastic idea to manage it all with two hands is beyond belief and becomes a beginning to a series of management conflicts in the days coming by.

So, how does one manage the functionalities? Let’s get a little strategic. Yes, in management terms, at first while computing SWOT analysis, every entrepreneur understands where they tend to pitch their business amongst their competition. Then it is always advised to know and understand what is at the core, the functions that you can really handle, what you are good at, the processes that are at the tip of your hands. It is best to have these tasks in the house, bank on the strength, utilize the time to make them a competitive advantage over the competitors, or grow your business beyond the horizons; for instance, as an Engineer – You could be good at ideating a product that really solves a set of requirements to the world at large. You get to bootstrap and ideate the product to develop the prototype and launch a pilot run. Now, in this process, would you be able to manage the expenses or build a convincing business plan that supports the product ideation? In reality, it would not work – so what next? You can concentrate on his product build and leverage the expertise of another company that expertise in Virtual CFO modules and remote financial management solutions whereby they manage your financials just the way an expert organization does and concentrates on his build project without a dilution – and also with the help of an experienced evaluator and auditor you get to build a strong business plan with due diligence whereby you get closer to either availing loan facilities from a financial institution or approach an angel list for funding, thereby winning the game by turning your project into a reality.

Now, the question is – how does this happen? Concentrate on your core and leverage the expertise from another to up the game quotient and have a win-win to realize your dreams. ‘Outsourcing’ is the key.

As well, for an established organization for when the need is to expand operations and needs to recruit, they can either block a lot of time to go through a whole list of classifieds on portals and schedule a line of interviews and brainstorm through to keep recruitment going as well manage on building the requirements for the project, end of it may become a tedious process. On the other hand, concentrate on setting up the project and outsource the recruitment drive to another expert agency to handle it with ease. The solution is a win-win here and the key to this outsourcing non-core processes.

Table of Contents

Outsourcing – a nutshell 

So, why is this relevant – when one clearly defines their core and concentrate on them while outsourcing other functionalities to organizations specializing just in that such as payroll processing, HR recruitment agencies, statutory compliance organizations, or for that even virtual CFO was the founders not only have time to concentrate their core functionalities but also have the assurance that the non-core processes are in best hands. Taking the cues from here, it is just right for companies to concentrate on their rightful processes and core competencies while outsourcing ancillary production, statutory compliance, human resourcing planning, backend operation collaboration, or financial processes. Let’s see how it varies from Micro, small to macro organizations.

This, in the long run, not only saves the extra rupee but also catapults the business to the next level rapidly. Now in the case of MNCs how does this function or how does one leverage this expertise from outsourcing non-core activities to relevant organizations? 

Let’s take an example again. When an organization wants to expand overseas to another country, it is required to go through an entire set of formalities that include statutory compliance to the laws applicable there, from land acquisition to factory setup set of formalities, hiring to the appointment of an entire team of personal, apart from this procurement to setting up production processes which would be a tedious process when one does not know the rules of the land applicable there. Then what is the best solution forward? Yes, as it is viable – Outsource all these activities to organizations native in the country and collaborate for the best solutions not just right but much more rapid-paced too thereby not diluting the core nor the total plan forward either.

To address the feasibility of outsourcing further let us understand how collaboration with other companies would practically be beneficial to the total picture. There are organizations that specialize in one set of functions that would be their core and this would be the optimum way to synergize. These organizations while synergizing would assist perfectly and just not that would be beneficial when handled right in the long run too.

And just not that, Versutus Management Services Private Limited is an organization present for more than a decade having vast knowledge, the right expertise, and skilled resources to handle not just in the state of Tamil Nadu but across India, while handling a portfolio of services starting with statutory compliance, due diligence to human resource management, virtual CFO services. How can one leverage the advantage of Versutus by collaborating with them, by being vocal to specific requirements basis which Versutus can customize tailor-fit services to the benefit or manage statutory compliance, provide HR solutions right from recruitment through payroll processing, or whether it is due diligence for expansion, growth or mergers and acquisitions, the result is always just right as to how it can be handled best. Versutus assures the most amicable solutions at the quickest TAT which would be the best at all times. Know more from at all times.

To conclude

Outsourcing has clear cost and scalable advantages, and once managed correctly, it will let you refocus your organization’s resources on areas that drive growth – however, as we can see from our example, outsourcing areas of your business that underpin your organization’s key revenue generators – such as software development, manufacturing, and product assembly can have dangerous long-term consequences.

A word of advice is to think carefully about which areas of your operation to outsource and focus on outsourcing areas that have a low value to your organization as well as a low value to any future outsourcer who may, in years to come, decide to become your competition. If, however, you do outsource areas of your operation which they could leverage to compete with you, then you must work diligently to determine the long-term, downstream implications, build a comprehensive, time-sensitive risk register and adopt a multi outsourcer strategy.



A seasoned professional with more than 2 decades of experience in collectively working with various ministries of the Government and well networked amongst various Government departments and the officials in various sectors. With the urge to streamline processes for organisations founded Versutus management services Private Limited, an organisation growing tremendously in the fields of compliance and management services with its clientele across manufacturing, logistics, Warehousing, IT & ITES. The confidence and trust of their clientele speak volumes about "Versutus" under the leadership of "Ramji"

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