As people, we tend to move away from existing systems toward more efficient ones. Joseph Schumpeter, a renowned economist, calls this the theory of creative destruction. Innovations constantly replace existing products and industries.
Of course, people are resistant to change, and aren’t always quick to latch on to something new. But in the end, efficiency always wins. That’s why we text and no longer send letters. Over four in five people worldwide now own a mobile phone.
From vertical integration to outsourcing
For decades, the world has been outsourcing. Not because it is the most efficient system in the world, but because to many, it is more efficient than vertical integration.
In layman’s terms, vertical integration is when a company does everything internally, from input to final product. It was dominant among large industrial firms till outsourcing started gaining prominence after WWII.
Yes, many companies still use vertical integration today. But a solid argument can be made that outsourcing is now more prominent. According to Deloitte’s 2022 Global Outsourcing Survey, 87% of companies globally are now outsourcing.
This article argues that, just like outsourcing emerged as a preferred alternative to vertical integration, embedded remote team members are positioned to become the next evolution.
Embedded remote team members: the future
As already alluded to, people tend to gravitate towards more efficient systems. For this reason, embedded remote team members are bound to become more prominent than outsourcing. But what are embedded remote team members, and how are they more efficient than outsourcing?
When we use the term embedded remote team members, we are referring to hiring remote/virtual teams from a company like ours so they become part of your organization. This is starkly different from outsourcing, which entails handing off tasks to a different company.
Outsourcing didn’t become prominent for no reason. When vertical integration reigned supreme, companies were being diverted from their core business by administrative tasks. Business leaders needed to reduce costs and focus on core competencies. Outsourcing provided a quick and easy fix. But like many easy fixes, it came with side effects.
Business leaders have started complaining about the loss of oversight that comes with outsourcing. According to Deloitte, organizations are actively rethinking outsourcing models to regain control, with 70% of executives bringing previously outsourced work back in-house.
In essence, business leaders want to shed off non-core competencies without shedding control. They would like to delegate work and retain oversight. This is where embedded remote team members come in.
Embedded remote team members have the positive attributes of both outsourcing and vertical integration, minus their drawbacks. They allow business leaders to retain control of tasks and maintain organizational culture while delegating non-core work.
When you partner with us, you get a remote/virtual team member who integrates into your organizational systems and culture. You retain oversight over their work, just like you would with any team member in your office.
Embedded remote team members and the adoption curve
As is the case with any new idea, embedded remote team members are going through an adoption curve. Simply put, an adoption curve shows how a new idea progresses from introduction to gaining a foothold. It segments people into five categories: innovators, early adopters, early majority, late majority and the last group to accept an idea, the laggards.
Currently, a few businesses have started offering embedded remote team members. Some are calling them by other names, including Team-Member-as-a-Service (TMaaS). Regardless of the multiple names they are going by, one thing is now clear: embedded remote team members represent the next stage in how businesses structure work. Early innovators are making use of this service, and it’s only a matter of time before others catch on.
Join the embedded remote team members movement today. To get started, all you have to do is schedule a discovery call with us so we can discuss your needs.