We have a client that has received an unofficial offer to have their company absorbed by one of their clients. They want to get him to be their in-house asset. Apparently they want him so bad that they have also left independence on the table as well.
Companies across the board are looking at what they do and how they do it to see if greater efficiencies can be had by bringing some services in-house or outsourcing some services they are currently providing.
When I was at Waste Management we provided a service to Fortune 500 companies where we took over all waste streams for the company and guaranteed fee to the client. My unit then had to make money by getting vendors to remove the waste as economically as possible, so we could still recognize a profit for the services.
We have a client who lost business from one of their larger clients because their client believed they could save money by bring the transportation component back in-house rather than paying my client as an outsource for transportation needs.
We have provided accounting services to clients who knew that the time and expense of hiring and training someone to handle the accounting/bookkeeping activities were greater than paying us to provide them. We actually have a client paying a family member more than 75% more than our proposed fee to poorly keep the companies records.
Granted these decisions need to be looked at and evaluated regularly to ensure that they still make economic and practical sense. Companies need to make these evaluations to ensure that they remain profitable and competitive in their market.
Do you look at what services make sense for you to be providing or outsourcing? We can assist.