Dear Jury, Dear attendants, Dear Opposition. We are here to propose following motion: Service companies should outsource environmental scanning to specialists.
Allow us to define this motion.
We define a service company as a company which delivers services to its customers. According to Philip Kotler a service is defined as; “any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product”. The core competency of a service company is delivering service related to the industry it is operating in.
According to Maurice Greaver II author of strategic outsourcing, Outsourcing is the act of transferring some of a companies’ recurring internal activities and/or decision rights to outside providers.
Environmental Scanning, often referred to as an early warning system, is monitoring the external environment beyond your competitors and industry. Properly implemented, a strong environmental scanning capability allows the organization to monitor trends, issues and events to understand the patterns and enable the early identification of both opportunities and risks. In a rapidly changing world, this early identification can allow your organization to prepare and develop an appropriate action plan.
We feel service companies should outsource their environmental scanning to professional research companies who have environmental scanning as their core competency as service companies have not.
According to Maurice Greaver II author of strategic outsourcing; Outsourcing has become more important in today’s fast changing environment, with its increase in knowledge, flexibility and performance, it’s causing organizations to rethink their activities.
In the recent years companies have started to embrace the idea of focusing on their core competencies and outsourcing their none core competencies. Business process outsourcing lets companies take full advantage of the realities of globalization by exporting certain business process to outside providers who can do it cheaper, faster, or better.
We believe that the activity of scanning the environment for service companies should be conducted by specialists based on three main reasons: efficiency, investment and professionalism. Let me start with our first argument.
State your point
According to Maurice F. Greaver II, author of Strategic Outsourcing: Each organization has two or three core competencies, that allow it to compete effectively. For service companies, the core competency is to deliver service linked to their industry (hotels deliver hospitality service, hospitals deliver treatment services). Any organization has limited resources, and those resources should concentrate on the core competencies. This is not to suggest that noncore competencies are unimportant, it does suggest, however, that organizations can lose focus and resources by trying to address noncore issues and competencies. Noncore competencies take up time, energy, and work space, all of which cost money. Outsourcing allows the organization to unburden itself of the activities related to noncore competencies by moving them to organizations that can perform them better and more efficient. (Even if costs remain the same, this is an excellent reason to outsource, because outsourcing will let management concentrate on the core competencies.)
Scanning the environment is a continuous process which is very time-consuming. An outsourced company has expertise and experience in this field, and moreover, they have access to databases, trend reports, sources coming from authorities and other reliable resources. Experts conduct the scanning and take this whole process out of the company, and the company can just wait for the results. P2. Investment
State your point
Outsourcing should be seen as a strategic investment for the future. When doing environmental scanning internally, this takes first of all time away to focus on core functions of the business. Scanning is a continuous process and will take up more and more time in this rapidly changing environment. When outsourcing this practice, everyone can focus on their core function which creates more efficiency.
Explain your point
Setting up a contract with an outsourced company which is specialized in scanning, costs money and thus is an investment. At the same time you do not immediately save money on it within the company. It is not the same as outsourcing housekeeping when you then fire all your internal housekeepers which saves money. But with investing in a specialized company regarding scanning, this will create available information provided by professionals which have the knowledge on how to approach this scanning practice. They are also solely focused on the scanning practice which gives these companies an increased knowledge. Together with the fact that internally everyone can focus on their core functions this strategy allows the company to be more successful and better prepared for market challenges. Being more successful equals to more profit. This small investment in this outsourcing practice thus is a profitable investment to create a more strategic and successful business.
PennState College states that managers which are involved in scanning the environment are not always good in seeing the external factors that impact their business. Maybe this can be explained by the fact that this is not their specialty. This is a waste of time then, is it not? Then again they have less time to spend on their real job, managing their service company.
State your point
Outsourcing environmental scanning will highly increase the professionalism of the performed analysis, because it is done by specialists, who have specific equipment, and technical expertise.
Explain your point
These specialists provide a superior package of resources, such as on-point core competences, cutting edge technologies, world class capabilities, state of the art equipment, experienced management, well trained personnel, and acquire innovative ideas. Also professionalism of the performed analysis will increase because of the unbiased view an outside vendor has, they will not be influenced by any other interest that the outsourcing company will have.
Adding this all up you will increase the value of the companies’ product, the service value, the customer satisfaction, and the shareholder value.