Call our team +44 (0) 207 566 3939

Blog

Outsourcing work flow?

Outsourcing work flow?

by | Apr 7, 2015 | Blog, Productivity, Tips & Advice, Uncategorized, Virtual Office | 0 comments

Outsource Tasks or Delegate Internally?

When you start a business, and also later when you are consolidating, there is a question you’ll have to ask often, and that is whether a task should be outsourced or done internally. This is an important topic, because it has a lot to do with choosing the priorities of your business.

• The classical company integrating system

Until recently, companies tended to integrate all possible functions. Obviously, that was a more pronounced trend in medium to large companies, simply because they had more resources and many of the support functions of the core business had a sufficient volume for one or more jobs, (payroll, travel organiser, equipment cleaning, photocopying service, a lawyer, an accounting department and many more.)

• The trend: specialisation

Over the years, things have been changing gradually. Some services were outsourced before others. For example, instead of having a person on the payroll dedicated to organising trips, many companies chose to have a contract with a travel agency. In some cases, the agency placed one of its employees in the offices of the company, in others, it was all done remotely. As a result, not only did the company save resources, but benefited from the expertise of a specialist travel company.
This same phenomenon has happened in many other support functions. Over time, companies have realised that it was more interesting to devote resources to core business activities (producing and selling, basically), while it saved time and worked better having specialised suppliers outsourced.

• When to outsource and when not to?

The question is not whether to outsource some services or trying to do everything in procedure. Many functions have no other option to outsource because you have a sufficient volume of activity to have a person dedicated to it, albeit part-time. Then, even if you had the time, in many other cases you would be paying much more with outsourcing, and not benefit from specialisation with these companies.

The real question is when you have to choose to outsource and when not. You should analyse which are the most strategic functions of your business. Essentially, you should take maintain a direct and immediate control over what constitutes the heart of your business. On the other hand there are many support functions that today cannot be outsourced because the volume of work involved is too small to interest a foreign company, even with new technologies emerging every day.

• A recurring question

The issue of outsourcing activities or not is a question you have to ask regularly. The environment changes, your business changes, your priorities change. At some point you may decide to rethink an internal function you had outsourced because you decided it is more strategic now than in the past, and vice versa.
Companies are living structures, and the model is changing constantly. There is no right answer forever. Everything is about adaptation.

Blog Categories

Contact Details

Tel: 0207 566 3939

Fax: 0207 566 39352

Sales: office@capital-office.co.uk

Support: support@capital-office.co.uk

Our Location

Capital Office
Kemp House
152-160 City Road
London, EC1V 2NX

Opening Hours

Monday - Friday: 9.00AM – 5.00PM
Saturday: Closed
Sunday: Closed

A Summary of Company Formation Documents

A Summary of Company Formation Documents Company formation documents are important pieces of documentation that you will be referring to once you’ve successfully launched your business — incorporated your name, formed a team, and boast a prestigious business address,...

What Are Limited Liability Partnerships?

Before considering a business address, you have to know what kind of company registration is most suitable for your business’s needs.  If you’re looking to set up a limited liability partnership, this article will outline all you need to know to better understand...

All You Need to Know About Limited Company Shares

If you’re set to launch a company limited by shares, it’s important for you to understand all there is to know about these limited company shares and what they mean for your business. Before you begin working via your prestigious registered office address, take note...

Appointing and Removing Company Directors 101

Appointing and Removing Company Directors 101 There may be a number of reasons you’ll want to remove your existing company director and/or appoint a new individual to the role. Whether you’re planning a major reshuffle at the top for the sake of changing course of...

Where Do I Send My Stock Transfer Form?

Where Do I Send My Stock Transfer Form? Congratulations! You’re either a newly formed business, or you’ve been running your brand from a reputable business address for some time. But with the plaudits comes the pressure; not least the overwhelming number of documents...

7 Important Roles of a Company Director

7 Important Roles of a Company Director You may be the proud owner of a new business, functioning from a credible business address, and envisioning a bright future ahead. But if you’re unsure about exactly what a company director’s role entails, then you may find...

In a hurry and just want some advice?