Companies often look for supplier relationships that will spread the risk to their own business. Some of the largest organisations (in terms of value) are able to optimise service delivery through the use of 3rd party outsourced relationships. For instance, Facebook has only 1,000 employees, yet it has a purported value of £32bn. Many of Facebook’s support services are provided by 3rd parties. Their phenomenal growth can only be possible through use of these 3rd parties and their resources.
When considering whether to outsource services, you may have a similar growth objective in mind, although more often the key reason to outsource is to reduce the management burden on your organisation and allow greater focus on core activities. With many outsourced services, such as IT Outsourcing (ITO) or Finance and Accounting Outsourcing (FAO), the question of carrying out the service in a lower-labour cost offshore location can come up. Many business processes are very well suited to offshoring, but many are not and ExcelSource can help you choose which will be most beneficial to your business.
In a recent ExcelSource project, we were able to help a client move a number of its’ back-office financial processes to a wholly owned subsidiary offshore. The key driver was to bring control of the clients’ customers back in-house because the processes had been outsourced to a large number of small 3rd party providers across the UK. Following a 12 months project, the key operational processes were successfully transferred offshore and are still successfully supported. The project resulted in significant cost saving for the client of some 60%, whilst at the same time achieving its objective of bringing control of a key customer segment back in-house.