Outsourcing & the SME Sector

… the background & an Irish context…

Olwen DaweIrish Business Intelligence

www.olwendawe.com

Why?

• Cost – based on budgeting / time of “life” in business;

• Efficiencies – needs-based, as-and-when required;

• Business model – driven by internal priorities, structures and requirements;

• Size and scope of business.

Outsourcing | HR | Context

Outsourcing | SMEs | Context

Outsourcing | SMEs | Context

Outsourcing | SMEs | Context

Outsourcing | SMEs | Context

SMEs | Why outsourcing?

• Focus – core business activity;

• Expertise – when it is required;

• Additional – capacity at certain junctures;

• Technologies – new and enhanced [staying up to date].

Silicon Republic 2007

‘Hassle factor’ influences SME outsourcing

Top Areas for Outsourcing?

Barriers?• Uncertainty – quality control;

• Apprehension – of benefits / goals of outsourcing;

• Management of providers – concern over issues;

• Confidentiality, ethics, data security…

• Can end up being a bad investment… Restructuring in SMEs: Ireland

© European Foundation for the Improvement of Living and Working Conditions, 2013

Two views…SME Outsourcing Communications Strategy‘It offers the flexibility but also the expertise when we need it. At a cost we budget for. It’s more measurable and suits our business model.’

SME Offering Outsourced Services to Businesses‘I deliver services which allow businesses to spend time on their core business activity - taking away the headache day-to-day and giving business owners back their time to spend on more critical business issues’

Other Factors for Consideration

• Economic realities – from 2007-2010, SME sector lost 15% of its total workforce;

• New Entrepreneurs – ROI on outsourcing must be clear…

• “Intrapreneurship” – business owners looking for committed, contributing staff – long-term-ism!

• Ultimately… it’s about the ‘fit’ with business values and model.

Anticipation of Future?

• Compelling offering and fit to company –“what can you do for me”?

• Return to growth… employment increases…

• Scope for multiple / combined offering

• SMEs scaling = where does the contractor sit? Know your role!

In Sum