Self-performing describes a business model or operational approach where a company directly undertakes and manages its own services or tasks, rather than outsourcing them to third-party contractors or vendors. This encompasses a wide array of activities, from construction and maintenance to customer service and software development. It often emphasizes internal control, direct oversight, and a potential for greater cost savings and efficiency through dedicated internal teams. However, it may also require a significant investment in internal resources, expertise, and training to achieve the desired outcome. It implies a commitment to in-house capabilities and control over key processes.
Self-performing meaning with examples
- The construction company made the strategic decision to become Self-performing for its upcoming projects, opting to hire skilled tradespeople directly and manage all aspects of the building process. This decision allowed them to maintain tighter control over quality and scheduling, and it mitigated the risks associated with subcontractor reliance. They now control all aspects of their projects.
- The software development firm chose a Self-performing model for creating their new platform. They built an in-house team of experienced programmers and designers. This meant the firm could avoid communication issues and control the software's development from start to finish, aligning every aspect of their platform with their core business goals. They gained control over all details.
- Rather than outsourcing its customer service operations to a call center, the retail chain transitioned to a Self-performing approach. They hired and trained their own customer support representatives, believing it would enhance customer satisfaction through improved brand knowledge and personalized interactions. They handled all customer interactions internally.
- The manufacturing plant adopted a Self-performing maintenance strategy, employing a dedicated team of engineers and technicians. This approach allowed for quicker response times to equipment failures, reduced downtime, and provided them with the flexibility to handle unexpected maintenance needs. They managed all maintenance needs.
- After careful analysis of the costs and benefits, the university decided to become Self-performing in its landscaping and groundskeeping services. It replaced external contractors with an internal team. This decision was made with the expectation to decrease costs while better maintaining their campus's aesthetic appeal. All maintenance was managed internally.