Tips for BOUGHT IN SERVICES

Let's start by looking at a no brainer of an outsourcing decision. You would not take on the task of hand delivering all your post around the country you will outsource this to the Royal Mail. At the other end of the scale if you own a burger shop you are not going to outsource the cooking of your burgers so there is clearly a scale of suitability upon which your outsourcing decisions will fall. There are of course more factors to be considered here than purely cost.

Our 1% challenge asks you to start by considering the outsourcing that already takes place. Is it really advantageous to outsource it and are we placing it in the right place. Even if the answer is yes, we still need to consider whether we are paying too much for it and can negotiate a better deal.

Further on in the process we can look at things we don't outsource and see if there are areas that might be better served by buying them in. Depending on the nature of your business there could be some significant savings to be had in this area.