Giant corporations might think they can handle everything in-house, but increasingly they're recognizing that they can find cost savings and increased efficiency by outsourcing very specific functions to companies that care just about that one thing. That's the thesis -- and clearly the hope -- of Eric Belcher, CEO of InnerWorkings
"If it's a non-core function to an organization, there's likely a deep and narrow company that has invested millions of dollars and accumulated a lot of expertise that can do the job better," he said. "InnerWorkings, for one, knows how to navigate the massive and fragmented printing industry far better than our clients can." Too often, the old-school printing companies rely on "relationships and donuts" instead of cost savings and efficiencies, and outsourced firms can cut through that.
For inspiration and investment ideas, Belcher looks for fast-growing companies that rely on technology to perform highly specific tasks for other organizations. In many industries, established companies might mask inefficiencies in their operations by relying on effective sales forces; Belcher looks for the lean, low-cost provider that can get a job done more efficiently.
In the freight industry, he's keeping an eye on C.H. Robinson Worldwide
He's also watching Vistaprint
Again, it's a lean organization filling a particular need using advanced technology to corral a highly fragmented market. Those, said Belcher, are the companies to watch. You can make smarter investing decisions with your own version of My Watchlist, new and free from the Fool. Click below to start following one of the stocks mentioned above:
Roger Friedman doesn't own shares of any companies mentioned, but they're all now on his watchlist. Vistaprint is a Motley Fool Rule Breakers pick. FedEx is a Motley Fool Stock Advisor recommendation. The Fool owns shares of FedEx and Vistaprint. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.