Competitive Intelligence (CI) and Outsourcing

Outsourcing has become a popular trend for most companies especially in the US and UK.  There are these issues of being in touch with the companies’ key issues, being on top of industry trends and have convenient access to decision makers.  These issues have already been properly addressed and have proven to be workable.  The outsourced staff is able to deliver the competitive intelligence function, and therefore does not need to be on-site.

A company that gets into outsourcing, hires an outside firm that provides the staff that performs the CI duties full-time every day.  Typically, there would be a team of 2 or more outside consultants responsible for collecting, analyzing, and disseminating to the organization the needed CI.   This team can function without the need to be in the company’s headquarters.  They would need to spend most of their time meeting with those that contribute to the CI function.

The answer to the question as to why there is a need to outsource is reasonable.  It may not work for every company and it would still be best to build an internal CI function.  However, certain situations call for the advantages of outsourcing.  Outsourcing can fill the gaps for companies that are understaffed and do not have the sufficient budget especially in the case of downsizing during an economic crisis and if an employee cannot relocate to the job for several months.

Outsourcing can prevent two (2) problems in a company.  These are (1) too many ad-hoc requests for low-level tactical information, and (2) infrequent contact with senior management.  Since in most cases internal employees have less access to top executives in many organizations, these outside consultants would have easier access to them.  Since the outside consultants spend less time on-site, they are perceived as hard to reach and would most likely result to fewer requests for low-level tactical information.

Virtual teaming is also effective for CI outsourcing since the CI team cannot always be on-site.  In a typical set-up, companies with several different locations have established flexibility in working.  They are accustomed to using technologies such as video conferencing and conference calls.  This may not be as effective with single-location companies.

It has already been pointed out that outsourcing CI function does not work for every company; it could still be a good or even the best option at times.  If the solution is not to have CI function at all, it is best for the staff to manage issues systematically.