Outsourcing Benefits

When successfully introduced, the outsourcing of new suppliers will not only produce cost savings, but also introduce a wealth of new knowledge, experience, creativity and added value to the organisation.

Below are some typical reasons for outsourcing:

Challenge the “status quo” of accepted wisdom within the organisation
Reduce the time spent by employees on non-core activities
Gain management expertise and improve the function of a particular department
Reduce management headcount
Convert largely fixed costs into variable costs which can be flexed according to business volumes
Encourage change and re-engineering within the organisation.
Take advantage of changing technology without adding to company overheads

Outsourcing can be a time consuming and complex undertaking. There are several pitfalls requiring specialist knowledge, including:

What are the implications of The Transfer of Undertakings (Protection of Employment) Regulations 2006?
How will you plan for future changes in your outsourcing requirements?
How do you obtain a full understanding of your future partner’s philosophy and business model?

Each stage of the implementation of an outsourcing programme requires careful planning to ensure a successful outcome. There is little margin for error if full value is to be obtained.

However, moving to strategic outsourcing need not be traumatic. The potential benefits are extensively documented, and the process is now well established. Horizon Associates’ extensive experience in this area will help you get full value.