Outsourcing in the New Year

By Freddie Pierce
Share
With the New Year upon us, many companies are now looking at their business processes in order to assess what they can change in 2012. With companies c...

With the New Year upon us, many companies are now looking at their business processes in order to assess what they can change in 2012. With companies continuing to struggle amidst a challenging economic climate, many are likely to dramatically change how their company operates this year, with outsourcing likely to become the preserve of many businesses attempting to rationalize their cost base.

Last year was a record year for companies operating in the outsourcing sector, with a huge number of businesses looking into the concept in an attempt to cut fixed costs and become more flexible. With the ability to drastically reduce fixed overheads whilst maintaining business operations without interruption and providing access to skilled staff, outsourcing has been a lifesaver for many in 2011, which is why the new year is likely to bring a further uplift in demand for outsourcing services; not only in the UK, but overseas too.

In a recent survey conducted by dictate2us, a dictation and transcription service, it was found that 62 percent of companies plan to outsource administrative jobs this year to cut the costs of overheads.

“Many of the administrative tasks typically undertaken by secretaries are necessary but incredibly time consuming,” Chief Executive of dictate2us, Daryl Leigh said. “For that reason, it’s important that business owners look objectively at their organization to question whether outmoded methods of operation are still relevant.”
 
It is thought that the increased interest companies have in relation to outsourcing is due to the many small business that continue to struggle to find employees with the necessary skills. Research carried out by the Federation of Small Businesses (FSB) found that 27 percent of startup companies struggle to find qualified and skilled staff.
 
Outsourcing was also a hot topic in the news last year, and this trend appears to continuing in 2012. In one article in particular, published in the Daily Mail, John Neilson, Managing Director of NHS Shared Business Services, has urged the NHS to outsource more of its call centers to India, to further cut costs; a predicted saving of £20 billion by 2014.

With articles such as these featuring in various different publications on a daily basis, it is no wonder that more companies are wanting to know what is to be gained through outsourcing, with there being more of a demand for outsourcing companies than there has ever been before.
 
One outsourcing website in particular that has reaped the benefits of the increase in outsourcing is OutsourceMyProject. With over £1 million worth of projects posted onto the site in 2011, the business is looking forward to what 2012 brings.

“Over the course of last year we witnessed a drastic increase in the number of small and SME companies looking to outsource their business functions to professional and freelance experts,” Loren Holland, Managing Director of OutsourceMyProject said. “Smaller businesses are now waking up to outsourcing, which historically has been viewed as the preserve of only large organizations. The principal benefits of outsourcing are twofold; cutting down fixed cost overheads and accessing skilled services which may not be available in-house.”

Click here to download Supply Chain Digital’s iPad app!

Edited by Kevin Scarpati

Share

Featured Articles

US Port Strikes Suspended: Will Supply Chains Stabilise?

Dockworkers have suspended strikes following a wage agreement, easing fears of holiday supply shortages as talks on automation and other issues continue

Why the EU has Delayed the Deforestation-Free Supply Mandate

The EU has proposed to delay enforcing its regulation on deforestation-free products, initially planned for December 2024, after political challenges

What Does US Port Strike Mean for Global Supply Chains?

The logistics industry faces widespread disruption as the US East Coast port strike kicks off, threatening global supply chains and seasonal peaks

WINNERS ANNOUNCED - Global Procurement & Supply Chain Awards

Digital Supply Chain

We're LIVE: Procurement & Supply Chain LIVE London

Procurement

Four More Speakers Join the Line-Up for P&SC LIVE: London

Procurement