The Tribune

By Ian Ferguson

Economists tell us that specialisation is the most effective way to efficiently deliver goods and services to consumers. Finding your niche and using your expertise is the proven best way to capitalise on greater productivity. Often, the small and medium-sized businessperson is challenged in trying to perform all of the crucial and varied functions involved in running a business successfully. This business owner is challenged, since his span of resources is usually inadequate, his economies of scale too small and his access to finance limited.

Outsourcing is the practice of using outside firms to handle work normally performed within a company. Some areas that are commonly outsourced include: Payroll processing, accounting, distribution, human resource sourcing, recruitment, training, and many other important functions. Research identifies the following as the most common outsourced areas in business:

• IT outsourcing

• Legal outsourcing

• Content Development

• Web Design and Maintenance

• Recruitment

• Logistics

• Manufacturing

• Technical/Customer Support

Some companies resort to outsourcing because they have no other choice. Others turn to outsourcing to cut costs. In many parts of the world, entire industries have evolved to serve companies’ outsourcing needs. Our country has been somewhat delayed in turning towards the benefit of outsourcing. Perhaps this article will spark the discussion.

Here are a few benefits of outsourcing critical business functions:

1. Outsourcing allows you to focus on core activities.

2. Outsourcing allows for cost and efficiency savings.

3. Outsourcing reduces overhead expenses.

4. Outsourcing assists management with greater operational control.

5. Outsourcing allows for more staffing flexibility.

6. Outsourcing increases business continuity and risk management.

7. Outsourcing helps in developing internal staff.

8. Outsourcing helps in improving customer service.

Before deciding to outsource, it is important to define what specific goals are to be met. One should also be aware of the risks that outsourcing carries. What is certain is that the advantages of outsourcing far outweigh the disadvantages.

The Chamber of Commerce and Employers’ Confederation through its Chamber Institute offers to the Bahamian corporate community the following outsource services:

• Training and Organisational Development

• Human Resource Management and Talent Management

• Labour and Industrial Relations Consultancy

• Accounting and Quick Books Services

• Small Business and Entrepreneurship Consultancy

• Information Technology Consultancy

NB: Ian R. Ferguson was educated locally, regionally and internationally, having earned a Master’s Degree in Education from the University of Miami. During the course of his nearly 20 years in education, talent management and human resources, he has served both the public and private sector in senior management roles. He currently serves as manager of the Chamber Institute, and as a local consultant in the field, having assisted hundreds of local and regional businesses in improving business and service excellence through their human capital.