Speaking Out about Outsourcing . . .
Outsourcing is often misunderstood, especially by those whose job it affects. Companies don’t just outsource because of a lack of capability, sometimes it is a consequence of an increase on the demand of their resources, or for a specialist need. Outsourcing shouldn’t be seen as what you do when you don’t have the resources. It is a resource, a different cost model option and a useful tool when scaling a business.
The beauty of outsourcing is the creation of an availability of resources on demand. It is a mind-set that dominates early stage businesses and corporate enterprises. Some of our most successful businesses, innovators and challenger brands have focused on achieving outcomes. Deciding on the value of attaining an outcome within a specific time frame rather than the costs of individual pay and rations, hiring to fill roles with defined job titles and worrying about protecting intellectual property has become most business decision makers mode of working.
Intellectual Property can easily be protected within an outsourced agreement. Financial management through a pragmatic and open relationship with an outsourcer (especially the nearshore/onshore providers and boutiques) is much easier, negating the cost of paying someone with a specialised skill set for a full year, or longer, which can be expensive. Through outsourcing you can make sure you get use of the critical skill sets, increased capability, but without a long-term commitment. This saves money, but also saves the trouble of interviewing and introducing someone new to the company, plus it results in bypassing or negating a costly recruitment process. You also avoid all the on costs of having to employ people and provide facilities. Many of the more niche outsource providers will even allow the TUPE of staff/teams back into your business if you wish to insource skills for the long term.
We are now seeing a trend of larger SMEs and Corporate Enterprises outsourcing aspects of business process or skills capability to the smaller companies. Near-shore, on shore and boutique providers are seeing significant increase in use as large corporates and SMEs are making use of this technique to reorganise their structure, change operating model, be far more responsive and accelerate capability. Much of the demand is driven by transformation agendas.
We are keen to hear about your experience of outsourcing; especially in areas of HR, Finance, Technology Infrastructure and Software Development. Please get in touch with your stories of success, recommendations and any challenges you are happy to share.
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