Vested Outsourcing: Not Just for the Big Guys

If you are a small-to-medium size enterprise (SME) let me assure you that the Vested Outsourcing performance-based model of collaboration, flexibility and innovation is just as relevant to your business as it is to the Microsofts and Jaguars of the world.

In fact, applying vested principles and the Five Rules is perhaps even more important for the SME from a tactical, strategic and economic sense.

For one thing, implementing the vested model puts a smaller company on a firm foundation for growth because it means that it has done its due diligence around understanding the business, the market and the opportunity that outsourcing affords.

For another, it prepares the SME for success in its dealings with all of its business partners, large or small. I firmly believe Vested Outsourcing provides a competitive edge in tough economic times, as well as when times are good, because the partners are jointly finding ways to produce desired outcomes that are measurable.

Progressive companies are turning to the Vested Outsourcing model because it provides more value and the win-win for the companies that are serious about it.

A good example of this comes from Mega Tech of Oregon, a $5 million outsourced manufacturing firm that is investing in the vested model. Mega Tech, based in Corvallis, OR, provides fully integrated, contract engineering, production, manufacturing and support services in the high-tech, consumer products and telecom industries, to name just three of its fields.

Mega Tech President Scott R. Schroeder has a clear understanding of the Vested Outsourcing approach: “Simply stated, the goal is to create a “win-win” relationship,” he says.

I just love it when people “get” the idea of Vested Outsourcing, as Scott surely does. In his company blog he talks about “iInVESTing in Vested Outsourcing” and has some very kind words about Vested Outsourcing.

“Vested Outsourcing is built around results instead of transactions where incentives are used to motivate the parties to achieve higher levels of efficiency. The key to success is to build a foundation based upon trust,” he says.

Right you are. I especially like what he says about building a foundation of trust, a critical element of making Vested Outsourcing work.

Trust is such an intangible and often fleeting aspect of life and of business that it’s refreshing to see acceptance of it in the business world through the implementation of Vested Outsourcing, whether you’re the big guy or the little guy.

Trust is the crucial piece that makes everyone larger.

Comments

  1. Hi Kate

    You have concluded your article with a very nice sentence “Trust is the crucial piece that makes everyone larger”. I am of the opinion that in an outsource partner relationship, communication plays a decisive role. On the basis of a smoothly communication, TRUST grows.

    Customers of offshore projects often complain about lingual and cultural barriers. I think OFFSHORING 2.1 is a remarkable approach to these pittfalls. With a management of people from the same cultural area and the application of modern communication technologies, customers don’t have to experience misunderstandings. Instead of complaining, they become an important part of the project team.

  2. Hi Kate

    You have concluded your article with a very nice sentence “Trust is the crucial piece that makes everyone larger”. I am of the opinion that in an outsource partner relationship, communication plays a decisive role. On the basis of a smoothly communication, TRUST grows.

    Customers of offshore projects often complain about lingual and cultural barriers. I think OFFSHORING 2.1 is a remarkable approach to these pittfalls. With a management of people from the same cultural area and the application of modern communication technologies, customers don’t have to experience misunderstandings. Instead of complaining, they become an important part of the project team.

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