Page 128 - 100 Great Business Ideas: From Leading Companies Around the World (100 Great Ideas)

Many companies, including Cisco, Dell, General Motors, IBM,
and Kodak, have outsourced their context processes to allow their
organizations to cope with both core and context demands. Sabrix,
a leading provider of software for managing taxation, outsourced
context processes, with company president and CEO Steve Adams
stating: “Outsourcing human resources and parts of our financial
IT system has allowed us to keep the right people focused on the
right things—things that differentiate our company.” Instead of
devoting key employees to working in IT and HR infrastructure,
Sabrix was able to focus talented employees on reaching new levels
in tax research, software development, and customer support: the
core activities for Sabrix.

In practice

• Be clear about what is core and what is context. Recognize that

some of these activities might be dynamic, moving between
categories.

• Be prepared to overcome possible resistance to outsourcing

initiatives and the rearranging of managerial responsibility.

• Delegate core activities from top management to middle

management, as they will have a better view of market trends.
By delegating responsibility to different parties, you can ensure
that no level within the organization becomes overwhelmed.

• Encourage top-level support to outsourcing and managing

context activities.

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