Why Outsourcing in a must in an ever-changing world

The only constant in life is change.

Every management guru preaches the words that come as no surprise to those who work in the recruitment industry.

In the last year alone, there have been changes to employment rights (WTR/holiday pay), National Insurance computations, Construction industry exemption certificates etc etc and more to follow with future changes to Temp-to-Perm fees and the drive to reduce "artificial" self employed contractors to PAYE/NI status through IR35.

Even in an industry known for its dynamism and flexibility, the demands on management time needed to cope with these changes are at best, heroic, but at worst, a huge diversion from the core (wealth creating) activity of finding and supplying quality staff.

Add to that the increasingly fast business cycle; such that if cashflow management requires additional vigilance, then maintaining flexible cost structures to avoid being stuck with "fixed" overheads requires crystal balls.

In short, the focus of the "Front Office" is being increasingly diverted by the demands of the "Back Office". Yet, Gross Margin Profits can only come from focussing on the productivity, mind-set and skills of the sales team.

Therefore, to do the "Back Office" chores in-house represents a major investment in both a fixed, inflexible cost structure and management time spent supervising a mind-set which is often not instinctive nor the same as their own.

Outsourcing the "Back Office" releases both those constraints and allows the focus to return to play to its (more profitable) strengths - the "Front Office". Make money, not bureaucratic empires!.

Ian Humphrey CIMA
Managing Director - Back Office Support Services Ltd

now take a look at our Outsourcing Page