Contact: Jane Kneebone
Deloitte
Communications and Media Manager
0416 148 845
"Mid market companies determined to stay focused on growth, and not be distracted with onerous compliance requirements, skill shortages and risk management, will increasingly turn to external providers to supply a broad range of functions and services" suggests Deloitte in their latest Reality of Growth Guide.
The 6th guide titled, 'Outsourcing: don't throw the baby out with the bathwater', highlights how, unlike their big end of town, mid market companies won't have to go through a frustrating learning process to understand what drives successful outsourcing decisions and what needs to be done to get the best value out of the process.
The big end of town experiences have provided salutary lessons in how to get the best out of outsourcing. When large companies started going down this track, driving down costs was a major driver. Ten years later there is wide spread recognition that successful outsourcing is a strategic and sophisticated process.
For smaller companies particularly, the major drivers tend to be access to experience and expertise as and when needed, mitigating risk and freeing up senior managers' time so they can get on with the business of growing the company.
Deloitte Growth Solutions partner, Julia Bickerstaff says, "Currently Australia is in the grip of what is probably the tightest labour market we've ever experienced so it will become increasingly difficult for mid market companies to attract and retain the best people. They simply don’t have the profile and reputation to successfully compete with large successful organisations for the top talent."
"Generally, smaller companies find it harder to attract good people, and the current market makes this even more difficult," Julia says.
Similarly, outsourcing is a much needed panacea for smaller companies that don't have the capital to invest in technology solutions needed to drive the business forward.
"That's why identifying and developing an enduring relationship with a good external providers is very much a growth enabler for the mid market."
'Outsourcing: don't throw the baby out with the bathwater', the latest in the Deloitte Reality of Growth™ Series, reinforces these messages. It takes the reader through the process of identifying what functions and activities could be outsourced to free up much needed resources, deliver specific expertise and backroom support that will give the company a competitive advantage.
The guide also makes it very clear that outsourcing is not the expert's way of doing nothing and that any outsourcing relationship has to be carefully structured and managed to make the relationship work. Nor is it about saving dollars. It's about enabling fast growing companies to match the performance of large organisations without the expense and delay of acquiring expensive resources.
For outsourcing success, 'Outsourcing: don't throw the baby out with the bathwater' makes the following points:
- Define the desired outcome and how they will be measured
- Check out provider thoroughly including references
- Recognise the power of culture
- Take into account the dynamics of a long term relationship
- Get the contract right
- Treat the provider 'as one of us'
- Manage the transition
- Plan for how the relationship might end
As the Guide says "outsourcing is what you do when you want to spend quality time with the business."
