In recent years, outsourcing certain tasks and objectives within an organization has become more and more common. These tasks can range from administrative tasks to core business operations. More specifically, within the industry of renewables and commercial land development, developers have realized that outsourcing the land origination aspect of the development process to companies like SixAndWest can be drastically more productive. There are a number of benefits, which we will discuss in this post.
Specialized Expertise
When an organization decides to outsource certain functions, they can gain access to specialized expertise. Many developers have in-house origination teams. But what many have found is that in addition to their existing internal team, they can benefit from taking on the services of a third party company like SixAndWest, who specializes in land origination.
Many of these companies who specialize in land origination have access to resources and have developed systems and processes that your typical developer may not have.
For example, a developer may have an internal team that has connections and familiarity in a certain region/market because of the history of the company. But companies like SixAndWest, that specialize in land origination may have connections and expertise in multiple regions/markets otherwise not available to a developer.
Scalability
Outsourcing land origination can provide developers with an adaptable and flexible business model that can quickly change to match the ever changing nature of the industry.
For example, there may come a time when new legislation passes in a new market; a developer may outsource its land origination so that it can scale and compete in that market quickly.
Cost Savings
One of the most compelling benefits of outsourcing is the cost saving potential.
Outsourcing in general can often be more cost effective than hiring and staffing in-house teams. In regards to land origination, a developer may seek out a third party land originator like SixAndWest, who works based on a commission type pay structure in order to minimize the overhead of salaries associated with an in-house team.
Increased Focus on Core Objectives
By outsourcing land origination, developers free up bandwidth so that they can focus more time and energy on their core activities such as interconnection studies, engineering and permitting. This is especially important for small to medium sized companies that just don’t have the manpower to fully service all of the core activities.
Many developers enjoy the lighter workload and find themselves being more productive throughout the day.
In closing, we can see that as a developer there are many benefits to outsourcing the land origination objectives of the organization. Whether it is purely for financial savings, a desire to scale and grow or to free up bandwidth to increase efficiency; outsourcing can assist a developer in reaching its goals and improving their bottom line. With that being said, it is always important for a developer to properly evaluate their situation and objectives in order to see what strategies may be best suited for them at a given time.