Opinion

Could outsourcing be the answer to saving you time and money?

Published: 27th July 2020
Area: Corporate & Commercial

Could outsourcing be the answer to saving you time and money?

Outsourcing became an important part of business economics throughout the 1990s and it is now an established model saving many businesses considerable time and money.

The emergence of COVID-19 in March 2020 has cost many businesses dear with customers disappearing overnight, staff being furloughed and cash flow squeezed.  With the economy now starting to reopen, businesses are rapidly learning how to adapt in ways they may have never considered before or needed to before.

The package of measures introduced by the government and the Coronavirus Act which came into force in March 2020 has meant that public companies throughout the UK are having to do business very differently which has led to an increased workload and a whole new set of governance and reporting regulations to learn and duties to discharge.  With many businesses still operating with a reduced headcount, with employees working from home, and directors now having more responsibilities than ever before to ensure their businesses are COVID safe, now could be the time to consider outsourcing.

Why do companies outsource?

There are many reasons why a business may choose to outsource certain business functions and COVID-19 has only increased these. Common reasons include:

• Focus on core tasks
• Reducing and controlling operating costs
• Promote growth
• Maintain operational control
• Offer staffing flexibility – especially relevant
• Provide continuity and risk management
• Gaining access to superior services
• Freeing internal resources for other purposes

What business processes can be outsourced?

Common businesses practices which are outsourced include payroll, IT, content marketing and with the new legislation introduced as a result of the Coronavirus Act, company secretarial services. Within many quoted companies in-house company secretarial duties are carried out, in some cases, by one of the existing members of the finance team. This could seem like a cost-effective move, but it has become increasingly apparent that the provision of company secretarial services, especially given the introduction of new rules is highly time consuming and that there is more value for the in-house team member to focus on their primary role within the business.

This rise in the use of providers of company secretarial services can improve control and efficiency as they focus only on providing governance services to a Company. In addition, an outsourced service providing access to a team of professional company secretaries generates significant cost savings when benchmarked against recruiting and maintaining an in-house company secretarial function. Feedback from the market also reveals that outsourcing this function provides further support when required, from corporate governance to legal guidance, thereby increasing service value thanks to the accessibility of professional advisors.

As a result companies are increasingly looking to outsource their company secretarial function by utilising services on an ongoing basis, during routine business, restructuring or peak times in the corporate calendar.

Contact us
For further information please contact Ben Harber or another member of the company secretarial.

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