MCP has developed an outsourcing methodology that ensures the partner chosen is the best fit for your business.
Taking the lead from the oil and gas industry and Public Finance Initiatives (PFI) outsourcing become the thing to do. Unfortunately, many organisations outsourced without understanding why they were outsourcing or even what they were outsourcing.
Many organisations chose outsourcing partners who were completely wrong for their ethos or simply saw them as contractors to be beaten down on price. The result of this was that many outsourcing initiatives failed and left both the outsourcing organisation and their partner with bad feelings about the whole venture and many of the possible savings are overlooked.
Whilst cost must always be a consideration it is not the only factor when selecting the right outsourcing partner. The overriding goal must be to get the correct balance of Risk, Service Quality and Cost, however almost as important is ensuring there is the correct ‘chemistry’ between the two organisations with aligned values and objectives.
MCP’s approach to outsourcing is shown below
The approach starts with identifying why outsourcing is being considered, often once this has been done the in-house service providers for the first time understand where they are failing and by undertaking an improvement programme step up and meet the needs of the business negating the need for the organisation to undertake a potentially risky and costly outsourcing venture.
If it is identified that outsourcing, either all or part of the service, is the right thing we will guide you through the whole process not only ensuring that the right partner is chosen but also that the right style of contractual agreements is put in place.
Successful outsourcing can reduce operational cost by up to 50% by providing benefits that include:
- Shared business risks
- Increased flexibility
- Access to new ways technology and best practice ways of working
- Streamlined organisation/ business practices
- Focus on core activities
- Reduced costs through increased purchasing power
- Free up cash flow