Is outsourcing the best strategy?

At James Todd & Co we can provide businesses in the Chichester area with help and advice. The following outlines the pros and cons of outsourcing core functions.

Outsourcing non-core operations has become very popular in recent years. Businesses now routinely outsource processes from cleaning to customer enquiries.

Other common areas for outsourcing include: payroll functions; human resources (insurance, recruitment etc); marketing; information and IT systems; and delivery.

The advantages

There are obvious potential benefits:

  • Management is free to concentrate on the core business
  • The use of resources, including human resources, is streamlined and more focused
  • Cost savings are achieved through economies of scale
  • Both risks and rewards are shared
  • Quality of service benefits from specialisation
  • Budgeting costs becomes more reliable in these areas because they are tied into contractual agreements.

Possible pitfalls

But there are also disadvantages to outsourcing:

  • Your customers do not draw a distinction between the core services that you provide and the outsourced services supplied by others, so any shortcomings on the part of the contractors reflect on you.
  • Some companies have also experienced dissent and demotivation within their own ranks as a result of outsourcing functions such as IT to contractors who do not share the same corporate culture and so do not treat employees in the way they expect to be treated.

A question of balance

As with most things outsourcing is a question of balance. For most businesses there will always be operations they can safely put in the hands of others and achieve both improved efficiency and cost savings.

But equally there will also be operations over which they will want to retain control. The art of good management is to know which is which! We can help you make the right decisions.

If you are in the Chichester area and would like professional assistance from experienced accountants and business advisers, contact James Todd & Co.

Have we convinced you yet?

Please feel free to get in touch via phone, email or our quick contact form.

We offer initial free consultations – simply contact us to find out more.


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Please call:
01243 776938
Lavant and Chichester
01273 470123
Lewes

Address
James Todd & Co, 1/2 The Barn, Oldwick, West Stoke Road, Chichester PO18 9AA
James Todd & Co, 16 Northgate, Chichester PO19 1BJ
James Todd & Co formerly known as Axtons, The Mews, St Nicholas Lane, Lewes, East Sussex BN7 2JZ

James Todd & Co is the trading name of James Todd & Co Limited. Chartered Accountants and Registered Auditors. Registered No: 07350649 in England. VAT No. 322087875. ICAEW Firm Reference No: C002730145 and James Todd & Co (Lewes) Ltd (formerly known as Axtons). Chartered Accountants. Registered No: 11214467 in England. VAT No. 290460506. ICAEW Firm Reference No: C005791297

Registered to carry out audit work in the UK and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales. Details of our audit registration can be viewed at www.auditregister.org.uk

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