The Benefits of Outsourcing
Over the past couple of years we have seen the shift in business culture of more focus on core operations and the services they best deliver. Areas of expert skill and resource should consider appointing specialists who know the day to day functions and latest updates within their field. Thus allowing the business to focus on the most important revenue generating activities and the beating heart of the business.
Outsourcing means that you can directly utilise the best talent out there but without the time- cost investment. A misperception can exist, that outsourcing is a cost centre and a misuse of resources, but in reality, you have limited time as a business to focus on those core operations and nevertheless, many of these concerns can be alleviated if the right governance structures, KPIs and communication frameworks are all in place between both parties. The businesses that leverage outsourcing will create an agile position enabling them to sprint and move forward quickly in fast paced markets. Some obvious benefits being:
- High Value Specialists know their fields intimately– Whatever it is you outsource they will work in that market daily so will use the most relevant metrics, be up to speed with the latest industry and/or regulatory updates and pursue continuing education within their fields. This also means there is less room for error, in turn allowing you access to skills and resource as and when your business needs it.
- Speed Generates Income– Outsourcing is a powerful business tool when it comes to generating speed, efficiency and in turn income. Businesses can quickly get the right people in the right places at the right time. You will also have the ability to increase project focus as colleagues aren’t wrapped up in their day to day roles- project focus in turn provides scope for accelerated deadlines.
- You reduce risk – Outsourced teams come with built in security systems, communications and cloud-based platforms that allow you to keep moving wherever you are. An outsourced role can be an independent voice, providing a valuable approach from someone whose future and fortune isn’t tied exclusively to that Company. However it is important to remember that outsourcing is also about supporting existing in house functions, not replacing them. Your in house team will still have a huge role to play, not least in overseeing the outsourced work. Transparency and real time reporting are critical components of the relationship.
- You reduce time and cost- on recruitment, training and package costs. In todays world it is proving increasingly difficult to recruit staff across all levels in all sectors, especially those with industry experience and the level of knowledge and exposure you will require for certain roles. Outsourcing can take away that recruitment issue we all face in the current market.
- Access cutting edge technology – Outsourcing can provide access to cutting edge technology improving the time, cost, efficiency and risk element.
For example our;
- Company Secretarial team are now powered by the digital board portal solution: Nasdaq Boardvantage. This means our CoSec services offering now includes the added benefit of our team of experts operating within a board portal digital solution, designed with robust security features and intuitive interface to enhance the effectiveness of meetings, collaboration and decision -making for boards, committees, and executive leadership teams: https://www.aspidagroup.com/wp-content/uploads/2022/04/Aspida-CoSec-leaflet.pdf and
- Resolver by Aspida, our cutting edge Governance, Risk and Compliance software that helps you easily organise, manage and keep up with regulatory requirements for efficient and comprehensive compliance: https://www.aspidagroup.com/aspida-resolver/
It may take courage to challenge the traditional in house approach to Co-Sec, Governance, Risk and Compliance but there has actually never been a better time to consider outsourcing. This is because the solutions market has evolved in response to rising demand, with new services and tools becoming available.
It’s true that establishing successful outsourcing is not a ‘one size fits all approach’ however by initiating a process that carefully considers the clients requirements and tailors the outsourcing requirements to their needs, Aspida can achieve a balanced in house/outsourced model that is right for your organisation.
Find out how Aspida can help you with the recent changes brought in by the introduction of the Lending Credit & Finance (Bailiwick of Guernsey) Law, 2022. Our Compliance Associate Eve Bott provides us with an overview on the consultation paper.
The ‘Better Directors Build Better Businesses’ Series, sponsored by Aspida, will comprise three seminars focused on the core areas of IoD’s Skills & Competency Framework : Mindset, Skills and Knowledge. CPD points will be available to all IoD members who attend.