The butterfly effect is the idea that a small and seemingly isolated incident can have an outsized impact elsewhere in the world. It highlights the degree to which many things that impact us, both as a business or an individual, lie far beyond our control.
The world is particularly unstable in the modern era, with change happening more rapidly than ever. Every business, regardless of size and industry, can be affected by a variety of external factors: political, social, economic, and so on. Coronavirus is the most obvious illustration of this.
We’ve witnessed the mass closure of companies and a near-universal transition to remote work as the coronavirus outbreak has engulfed the world. According to the
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When companies grow and scale, they often face the question of whether to
In the wake of this crisis, many companies will likely think about giving up outsourcing, so their fate will be more in their own hands. At Dating.com Group, we didn’t realize the importance of such independence immediately. Now, though, we are working to become secure from all external factors. We are expanding horizontally by creating our own payment system, for instance.
The payments industry is challenging and highly regulated, which makes outsourcing especially tempting. Last year, though, we realized that we had become very familiar with the payments space in the process of developing our business. Because the e-commerce industry, and the world of online social and dating services, is so dynamic and competitive, we have highly qualified staff able to execute difficult tasks related to financial services. We also hold both commercial and services companies in our portfolio, increasing our exposure and experience.
We have the expertise to start processing incoming online payments from customers, and will eventually provide the same services for other businesses in the online social and dating space.
There are myriad benefits to having our own system, too. It will not only protect us in the current crisis, but will increase the efficiency of cash flows and to save up to 1% of revenue for our European holdings.
Internal changes like this increase margins—something that is especially important for tech businesses, many of which are not profitable at all—and offer an added buffer against instability. External factors will always play a role in business, and the current crisis is going to have a long-term economic impact for companies around the world. Minimizing outsourcing, though, is one way to minimize uncertainty, making sure you’re the one in the driver’s seat of your plans.