Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

Why “service firms” use Intermediaries to develop their business?

user-image
Question added by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
Date Posted: 2014/09/10
zafar abbas minhas
by zafar abbas minhas , Freelance Writer , DAILY MASHRAQ

TO AVOID TOO MUCH  HIRING OF STAFF ,, THEY TAKE THE REQUIRED SERVICES WHEN & WHERE NEEDED ............... GOOD DAY

Khatim Abbas Seed
by Khatim Abbas Seed , BUSINESS CONSULTANT , Google

Service firms and most businesses operating in the service sector rely heavily on labour and pay extra attention to labour-cost too. Where one staff-member in the product sectors can handle multiple product-lines, hundreds of customers or tens of vendors at once, in the service industry it is often a head-to-head interaction, meaning that every employee/expert/service provider will be charged with one or few clients at once to achieve high quality service provision.

 

Without using external expertise, whether on freelance-basis or interim-basis, a service firm cannot operate fully. Growth of such companies cannot correspond linearly in growth of manpower, or the smallest company will have to employ hundreds if not thousands of people with all costs associated with inventory, overh-head, salary, tax premiums, extra benefits and low ROI.  

 

I used to run an agency before (= intermediary with final responsibility role), relying heavily on the expertise of thousands of freelance language service providers. Without them, my business model could not have functioned or become profitable.

Nasir Hussain
by Nasir Hussain , Sales And Marketing Manager , Pakistan Pharmaceutical Products Pvt. Ltd.

Good Day!!!

Agreed to both Salauddin & Zafar......... To control the administrative & process cost.

Salauddin Mohammad
by Salauddin Mohammad , Sr. Manager, Software Development , Aspen Technology Inc

Because the companies don't have inhouse expertise for this, and it costs less hiring consultants comparing to building inhouse expertise... Also, the source companies can put more risk costs on the consuting companies which makes them safer..

More Questions Like This