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As businesses seek to focus on their core capabilities, one option that is often considered is whether to outsource a non-core function, such as IT or payroll, to a specialist provider. This type of business process outsourcing allows the business to ensure their underlying processes and administration are taken care of, freeing them up to focus on production or development of products.
Advantages and Disadvantages of Outsourcing
Getting a specialist third party to provide these services can often lead to a reduction in costs and can allow for a step-change in service.
Outsourcing can, however, bring certain issues that must be kept in mind. These include:
- Feelings that a business is no longer in control of its own services
- Promised service transformation has not materialised
- A need to ensure that the business processes that have been outsourced are still being provided:
- in a cost effective way;
- at competitive rates; and
- in a way that fits in with your business.
Why Choose JMW?
An outsourcing arrangement will normally impact on a section of your workforce and we can help draft the agreement to ensure that your business is not exposed to undue risk in this area.
Our team has wide experience of advising parties looking to outsource functions, ensuring agreements have robust relationship management processes and clear mechanisms to allow for changes over the course of the agreement.
We also help clients ensure that contract pricing over the duration of the agreement is clear, savings are delivered and that service levels are clear and have real meaning through effective service level regimes.