Outsourcing Shall I/ Shan’t I? Rachel Flanagan Flanagan Shaw Recruitment.

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Presentation transcript:

Outsourcing Shall I/ Shan’t I? Rachel Flanagan Flanagan Shaw Recruitment

What are we covering today? Definition of outsourcing Why outsource? Outsource what? What not to outsource Pros and cons of outsourcing vs DIY Pros and cons of outsourcing vs recruiting Choosing someone to outsource to Protecting your business When to recruit Your own experience

Need to grow your resources? Casual supplier DIY Associate Employ Automation Outsource

What is Outsourcing? The act of one company ‘contracting’ with another to provide services that might otherwise be performed by in-house employees Not employed by you BUT check they are self-employed Paying for their services as and when needed Freelancer/ big company Casual supplier/ Associate/ retainer arrangement/ mixture

Why Consider Outsourcing? Need additional capacity but not all the time Skills/ expertise not available in-house Time consuming/ costly to train/ can’t train Too time consuming to keep up-to-date Too time consuming to complete tasks Tasks not enjoyable Skills required as a one-off ‘Try before you buy’ Skills transfer Build a sustainable business – Anything that detracts from core competencies

Outsourcing Example?

What Not to Outsource? Core competencies? Relationships with clients?

Benefits of Outsourcing vs DIY DISADVANTAGES Need to document processes Management time Less control – Quality – Access to person when you need them Cost Become tied in/ reliant? BENEFITS Freedom to focus on core business Specialist expertise when you need it Better quality work? More efficient Build a sustainable business

Benefits of Outsourcing vs Recruiting DISADVANTAGES Less control – Quality – Access to resource – Doing it your way Salary cost can be significantly lower than contractor rates BENEFITS Fewer obligations, eg: – NI expenses – Employer’s liability insurance – pensions Easier to ‘let go’ ‘Try before you buy’

Choosing Outsourcing Suppliers Think carefully about decision! Costs Technical skills and experience Values/ attitudes/ behaviours you need Have they worked in your sector/ similar before? Examples of work Recommendations Range of options/ quotes Would you consider employing them?

Protecting your Business/ Checking the Outsourcing is working Define expected pay-off and monitor it Service Level Agreements Associate Agreement Code of Conduct External QA checks

When to Recruit Employees When it makes sense: – Demand – Cost and affordability – Want to business to be able to exist without you Leap of faith!

Over to You Currently considering outsourcing/ recruiting? Consider it in light of what you’ve heard today.