Outsourcing can play a key role in your business, argues Jason Berry from Safe&Secure
In a business environment where ‘fixed/variable costs vs returns’ remains so pivotal to profit it seems sensible to occasionally investigate both how outsourcing could effectively improve company efficiencies and exactly which aspects your business excels in.
Understanding the actual definition of ‘outsourcing’ is interesting as context ranges from the expected ‘Outsourcing involves an organisation passing the provision of a service or the execution of a task previously undertaken in-house to a third party to perform on its behalf’ to the somewhat extreme of ‘Outsourcing equals firing local employees to hire cheaper labour elsewhere.’
At Safe&Secure we recently completed a full review of best practices and whilst it was clear that some excellent strengths were/are evident it was also apparent that we had some potential risks and some unnecessary costs. Subsequently, processes were amended and some human resources tasks were specifically outsourced to experts who provide specialist support at a low fixed cost. Positively, the undertaken actions did not result in anyone losing their job.
Although time consuming I am sure performing a similar autopsy on all aspects of one’s own company can be a pretty sobering experience for any business owner and identifying weaknesses can sometimes be difficult to personally accept. I would bet however that no external management consultant could spot these weaknesses as effectively.
I`d suggest that the most successful businesses are ones who, whilst sticking with core activities at which they excel, innovate by partnering with associates who can perform a third party benefit. Here at Safe&Secure we only transact general insurance but partner with businesses offering things like communication packages (Virgin) and energy saving (Uswitch). Importantly we do not transact or aspire to transact any other financial services products as it would conflict directly with our core proposition and our intermediary support base.
I do accept that unprecedented market conditions mean intermediaries are having to broaden knowledge and skills but I would urge advisers, having identified what they are best at or most enjoy, stick rigidly to these core proven activities whilst finding partners who either offer supplementary revenue or clearly save process/admin time.
<a href="https://jasonglberry@hotmail.com">Contact Jason Berry</a>
<a href="https://www.safeandsecure-ins.com">www.safeandsecure-ins.com</a>
