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Frequently Asked Questions About Outsourcing

Discussions with our clients and potential clients constantly bring up new questions about outsourcing.  Although it’s impossible to list all the questions here, we thought it might be useful to use this part of our website to deal with some of the questions we’re most frequently asked.

Is outsourcing right/worthwhile for us?

Can a company of our size benefit from outsourcing?

Do I have to ‘outsource everything’ to get a good deal?

We don’t want to upset our current supplier but how can we investigate outsourcing and where do we start?

 

Is outsourcing right/worthwhile for us?

Like any business decision, the decision to outsource should not be taken lightly.  That said, it’s worth bearing in mind that outsourcing provides the opportunity to save up to 50% on the cost of IT and back office services as well as bringing flexibility, efficiency and scalability to your business.  The types of benefits you should reasonably expect from outsourcing include, but are not limited to:

Access to capabilities that aren’t available to you in-house.
Added flexibility.  With outsourcing, you can change your resource mix without the need to change employees or contractors.
More control, thanks to the reduced variation in the cost of providing services over time.
Cost savings.  As we’ve mentioned already, it’s reasonable to expect outsourcing to offer up to 50% savings on the cost of rendering services.  Cost savings typically fall into a handful of categories such as: straight head-to-head price differences; efficiency savings; reduction in hiring and firing and office/equipment costs.

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Can a company of our size benefit from outsourcing?

With outsourcing, you needn’t ever fear being “too small”or “too big” or worry about needing to “outsource everything” to get a favourable deal.  Outsourcing can be extremely successful regardless of deal size, simply because, it can often be more cost effective and more efficient to use external teams than to hire internally.  In order to put this into context, at GOX we’ve done deals ranging from 2-3 days of work to as much as 180 days as well as working with companies with small to medium sized companies up to FTSE 100 companies.

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Do I have to ‘outsource everything’ to get a good deal?

It’s a complete myth that you need to outsource “everything” to achieve economies of scale.  Sometimes even outsourcing a small piece of development can save a company 50% on using local or internal options.  If you approach the right vendors there is no such thing as a small deal.  At GOX we often see clients just outsourcing pieces of IT but not the whole thing in order to more effectively manage risk.

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We don’t want to upset our current supplier but how can we investigate outsourcing and where do we start?

There is a big difference between being a confrontational customer and being a savvy customer.  Strong, mutually beneficial relationships between client and supplier are essential for success, but clients always get the best price and the best service when suppliers know that they’re not the only player in town.  One great way to investigate your outsourcing options is by speaking to us at GOX.

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To discuss these and any other questions you may have about outsourcing, contact us today for a no obligation discussion.

 

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