Like other business decisions, outsourcing requires careful planning and consideration. You should not rush into outsourcing without carefully examining a wide range of possible issues.
Most of the complexities associated with outsourcing fall into six broad categories:
- Productivity – standards of output need to be discussed and agreed in advance of the works
- Communication – A clear communication policy is essential.
- Culture – Awareness of local culture is not something to overlook.
- Organizational readiness – Are your own systems in place and ready to outsource.
- Costs – Generally significant Savings are achieved.
- Scalability – Avoid increasing Fixed Overheads and create flexibility to market demands.
Cost savings and Scalability are the most common reasons companies outsource.
Avoid Outsourcing Pitfalls
To avoid common outsourcing pitfalls, consider the following:
- What are your core strengths and what are secondary? What processes are you thinking of outsourcing and why? Is the function a key task which your business needs to control directly to ensure its future competitiveness?
- What are the costs of doing it in-house? Include hidden costs such as office space and staff costs. Also, what are the costs of not outsourcing? Will your business suffer if it does not invest in the expertise or the facilities that an outsourcing partner might provide?
- Are you prepared to spend the time and energy required to manage the outsourcing relationship?
Be sure that you are ready to outsource, and clear on the benefits of doing so before you take the decision.
Mitigate Outsourcing Risks
Outsourcing benefits go hand in hand with risks. Not all will be avoidable, but there is a way of mitigating their impact.
Before agreeing an outsourcing contract, you need to plan what you will do if problems arise. For example, if the provider you have chosen is not able to complete the tasks, you may want to consider having other service providers that you can turn to relatively quickly or taking the outsourced processes back in-house.
It is important that the contract between you and the outsourcing company sets out a clearly detailed scope of work with detailed terms and conditions.
When you engage our services, we partner with your business and can provide Team Partners with full professional services pertaining to Architectural 2D shop drawings,3D BIM Modeling, Floor Plan Renderings with virtual fly through.
In addition we offer Quantity Surveying, taking off material quantities, Cost estimating, Project Management and Quality Control Services both on and off sites.
The information provided above is general in nature, has been prepared for informational purposes only and does not constitute legal advice. All parties need to evaluate their specific project conditions, contract, local codes and ordinances and contact their attorney or consultant to understand and apply these and other general principles for their project. The information is intended but not guaranteed to be correct, complete, and up-to-date. No representations or warranties are made, express or implied, that this information is correct, complete, or up-to-date.
Author
COLIN ANTHONY ADDLEY MCIOB, MAIB, MSAIB
Colin is a highly experienced Professional Quantity Surveyor and Project Manager with over three decades in the International construction and Marine Industry.
He is a specialist in the fit out sector having executed many prestigious, Luxury high quality and Technically Complex Projects.
He is also a creative writer having penned many industry related articles.