Outsourcing the Key to Margin in a Shifting Market By: Ed Seger CEO SCI - Buffalo, NY www.scitelecom.com.

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Presentation transcript:

Outsourcing the Key to Margin in a Shifting Market By: Ed Seger CEO SCI - Buffalo, NY

Common Outsourcing Examples Supplemental Labor External Project Management External Product Development External Infrastructure Development Manufacturing or Re-manufacturing Sustained Engineering Education Services External operations Project Rollout “Golden Template” Leased Employees HR

General Out Sourcing Production Human Resources Development Infrastructure Customers Core Competency Professional Services New Expertise

Technology $$$ Materials Craft Labor Leveling Program Management $$$ Legacy New The Value of Outsourcing to Customers Value over Time Engineering Values Over Time New Technology And Applications Introductions The next wave Sustained Operations Values over time

Why Outsource? Telecom Nuclear Winter Long-lived effects Workforce Reductions >500,000 + people affected Industry Consolidation CLECs are endangered species Success is based on Flexibility Operations is tight as is R&D Sales and Marketing Focus is Crucial

Exuberant Growth Height of the bubble Telecom course corrections and cross over churn Sustained Growth The industry is here State of the Industry

Exuberant Growth Height of the bubble Telecom course corrections and cross over churn Sustained Growth Outsourcing is here State of the Industry

Benefits of Outsourcing Focus on Core Business and Customers –Sales and Marketing are Priority –Outsource Operations, HR, Legal etc. Variable Expense vs. Fixed Cost –”Use as Needed” Increased Skill Set and Experience Increased Geographic Reach Increased Purchasing Power Ramp up Projects Quicker

What Makes an Outsourcer A Good Partner? Experience –Reference-able, Similar Projects, Extended Capabilities, Availability Processes and Procedures –Consistency, Integrity and Quality Skill Sets & Educational Programs Competitive Advantage vs. Risk –Do they sell products? …..Into Your Base? Representation –Ethics (representative of your company to your customer) –Staffing (Uniforms, Vehicles, Interview Screening, Code of conduct) –Creditability and capability Geographic Reach –Internally or with Partners that are managed Financial –Stability –Competitive pricing –It fits your business model A few Ideas

Questions & Open Discussion