Outsourcing--Friend or Foe?

First, Segment Your Market

Let me try to explain what I mean by strategic outsourcing and the process it involves. Prior to outsourcing any service, an analysis of strengths and weaknesses is essential. You must determine systematically what your in-plant is good at and what it is not good at.

Your in-plant's business or market must be segmented into the major products and services you are producing. This list needs to be of a workable length. Do not segment it so far that every product is a separate category. For instance, you should have a category for stationery. There is no need for separate listings for letterhead, envelopes or business cards.