Outsourcing has become an increasingly popular business practice, companies are looking to continue to grow, reduce overheads and increase efficiency.
One area where outsourcing has gained momentum is in professional services; accountancy firms, legal practices and financial services companies are increasingly exploiting their outsourcing options.
What are the five main benefits of outsourcing
Here are some reasons why more companies are using business outsourcing in places like South Africa:
1. Cost Savings:
Outsourcing offers cost savings as it allows companies to reduce the overheads associated with hiring and training staff, purchasing office space and equipment, and paying for employee benefits. Outsourcing also provides access to a pool of skilled professionals who can perform tasks at a lower cost than hiring a UK equivalent. An average saving, based on some research, is as much as 48% per FTE.
2. Access to Expertise:
By outsourcing, companies can access a wide range of expertise, particularly in areas such as accounting and law, where specialised knowledge is required. Outsourcing firms employ skilled professionals trained in the latest technologies and best practices, ensuring that companies receive high-quality services.
3. Increased Efficiency:
Outsourcing allows companies to focus on their core competencies while delegating non-core functions to specialised service providers. This increases efficiency and productivity as companies can focus on their primary business activities.
Outsourcing allows companies to scale up or down their operations based on their needs. This is particularly beneficial for small and medium-sized enterprises (SMEs) that may not have the resources to hire full-time staff.
5. Reduced Risk:
Outsourcing can help companies reduce their risk exposure by providing access to specialised expertise in compliance, legal, and financial reporting areas. Outsourcing firms are also equipped to manage risk effectively, ensuring companies comply with regulations and mitigate potential risks.
Outsourcing is becoming an increasingly popular business practice, particularly in destinations like South Africa. It offers a range of benefits, including cost savings, access to expertise, increased efficiency, scalability, and reduced risk.
Why do companies outsource in South Africa
South Africa won the “National Outsourcing Destination of the Year” as well as the “European Outsourcing Association Offshoring Destination of the Year” in the last five years (through to 2022). And Durban is fast becoming South Africa’s international BPO services epicentre.
It offers good quality of life at a much lower cost than other major South African cities such as Cape Town. As a city, Durban has a 34% unemployment rate and thousands of graduates looking for jobs yearly, so the talent pool is large and highly skilled.
In addition, South Africa’s infrastructure is world-class, from road and power to education, healthcare and entertainment, making it an attractive destination for business and investment.
As a result, more companies are outsourcing to optimise their operations and stay competitive in today’s fast-paced business environment.
If you are interested in finding out more about how outsourcing can benefit your business, then contact Logros Advisory Partners
Logros Advisory Partners is working closely with Pompom Global Limited, an outsourced professional service and contact centre (BPO) based in Durban, South Africa,
Frequently Asked Questions
Q. How does the process work?
We start every outsourced project by spending time with the key stakeholders in your business. Learning about the exact requirements and support you are looking for. Once we have a firm handle on your needs, we will provide you with a written proposal of our service and how we think we can help.
If you’re happy, we move to the ‘campaign build’ stage, where you can have as much or as little input into your project’s recruitment, training and launch as you wish. That 3-step process, Fact Find > Proposal > Campaign Build, usually takes around four weeks.
Q. Will I be tied in on a long contract?
We understand that companies new to outsourcing will be apprehensive at first and will need a proof of concept. We can start with a trial period of 90 days (3 months) to minimise any outsourcing risks. After this period, you can evaluate our performance and decide whether to proceed with outsourcing a longer term with PomPom Global; we’re happy to continue on a 90-day rolling contract.
Q. Who will be my point of contact?
You will have a dedicated point of contact responsible for managing every project phase until its completion. You will have UK and SA contacts during the onboarding process and beyond.
Q. Can outsourcing save us money?
Yes, outsourcing can help companies save money by reducing overhead costs associated with hiring full-time staff, purchasing equipment and office space, and providing employee benefits. Additionally, we can perform tasks more efficiently and at a lower cost due to economies of scale.
Our clients saved an average of 48% when comparing like-for-like FTE costs.
Q. Will outsourcing lead to job losses?
Outsourcing is a cost-effective way of removing the mundane from your core workforce. This should lead to your core staff (UK/Canada/USA/Australia) being unskilled and adding more value to your business. However, in some circumstances, outsourcing may lead to a reduction in certain job functions, and it’s always part of our initial fact find to assess the impact. But it can also create new job opportunities as companies focus on their core competencies and expand their operations. Additionally, outsourcing can help companies remain competitive and avoid downsizing or closing altogether
Q. Will outsourcing reduce the quality of our work?
Outsourcing can improve the quality of work by enabling firms to access specialised expertise and the latest technologies and best practices. Firms can work with their outsourcing partners to establish clear expectations for quality and performance and to ensure that work is completed to the highest standards.
Q. Will I Lose control of my processes?
It’s difficult to hand over some of your business processes to firms thousands of miles away! So we must build communication channels that keep you in control and confident in your extended workforce. At Pompom Global, we work closely with companies to establish clear communication channels and a shared understanding of expectations and goals. Regular updates and reports can also help companies stay informed and maintain control.
If you would like to discuss outsourcing for your company, then please contact us here or email Lee@Logros.co.uk