This article excerpt was originally published in the Phoenix Business Journal on May 9, 2008
Arizona-based companies that honestly face the realities of ever-increasing global outsourcing can reap significant rewards. Some Arizona-based businesses have adjusted their business model to take advantage of outsourcing trends. Companies ignoring reality do so at their own peril.
Phil Harrington, CEO and President of ICM Conversions (www.icmconv.com), has stayed ahead of a trend by some customers to outsource low-end document scanning to India. He has converted his 20-year old Phoenix-based document scanning company into a national, ISO-certified, document solutions company.
“In manufacturing and government we must continually demonstrate clear value with our technology, quality and local presence,” says Harrington. “We’ve become more competitive on cost and shifted our emphasis to total document solutions that allow customers to improve their productivity. The total-value formula has made us tough to beat.”
The approach has paid off as ICM grew revenue and earnings by over 25% in 2007, and they expect to grow by 40% in 2008. Rather than compete only on cents-per-page scanning projects, they’re selling complete solutions and higher-value products and services. Current customers like Honeywell, Boeing and the State of Arizona are reaping the benefits, and buying more.
Rod Miller, Vice President of International Economic Development for the Greater Phoenix Economic Council (www.gpec.org) concurs. He is a leader in attracting international companies to Arizona, and has a firm grasp on what it will take to continue making Arizona competitive with other states.
“Like the need to attract foreign direct investment to Arizona, we see global outsourcing as a business reality that can support our growth,” says Miller. “Companies here that see the opportunities and that embrace change will help us win in the global marketplace.”
Industries are radically changing as suggested by Thomas Friedman is his 2005 book The World is Flat. Companies must embrace the new reality or risk extinction. Here are suggestions for any Arizona-based company looking to be more competitive in today’s global environment.
- Strategize with a clear view. Work hard to see what’s ahead, not just what’s behind. The past is not always the best indicator of how to proceed in the future.
- Bring in outside perspectives. You know your business perhaps too well. Outsiders will be able to help you see the reality of the market more clearly.
- Take action. Sometimes business owners need to say “no” to the way they’ve always done things. Break free, and reap the benefits.
By Doug Bruhnke, CEO/Founder of Growth Nation and President/Founder of the Arizona International Growth Group (AZIGG)
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