Tag Archives: outsourcing

6 great tips on why SME's should outsource!

Outsourcing

I ‘m a strong advocate of the benefits that can be enjoyed by outsourcing a component of your business whether its print, payroll, billing I.T or customer services to the outsourcing of a complete department of an organisation as long as it’s a strategic fit for the company and there is utmost transparency in the way an organisation manages the process.

Traditionally when people think of outsourcing they associate it with big corporations who have the infrastructure and the resource to benefit from a large scale re-deployment of one of their business components.

But this is not the only way that outsourcing can be used effectively. Small to medium businesses can use outsourcing to their advantage. Sections 382 and 465 of the Companies Act 2006 define an SME that has a turnover of not more than £6.5 million, a balance sheet of not more than £3.26 million and 50 employees; a medium sized company with a turnover of not more than £25.9 million, a balance sheet of £12.9 million and 250 employees.

I’ve talked about the benefits of outsourcing in the past with particular reference to payroll and billing here!

The same principles can be levied for any business component you are considering.

why its good to outsource

6 great tips on why companies should outsource

Here are 6 things to consider when outsourcing:

  1. What business aspects are you struggling with? Where can your company outsource to make cost savings and streamline the organisation processes for example it might be marketing, web design, payroll printing, invoice processing/printing. All of which are important to a company but are time consuming and manually intensive.
  2. Outsource as much as you can but not the core elements of your business after all that was the main reason the business was established unless it’s some manufacturing element that you are considering.
  3. Dont be afraid to use the same company for many different things the more services that an outsource provider does for your business in relation to outsourcing the more you are likely to see volume savings. In the same way you see in the supermarket buy two get the second for free. If you are looking to automate your accounts systems such as AR/AP or outsource your invoice processing/printing make sure the provider can manage the distribution element for example you may print, mail and electronically send your invoices so make sure that the company you choose can manage this process for you and more importantly they know what they are talking about and can demonstrate success criteria.
  4. Investigate the market place and evaluate who you think best accommodates your requirements. Don’t think short term, think medium term at least otherwise if you get it wrong it might be painful to get of and you may well end up by repeating the exercise again six months down the road.
  5. Don’t be swayed by the cheapest option or choose on price alone if you do you will shoot yourself in the foot. There isn’t such a thing as a free lunch! When you see something cheap what’s the first thing that springs to mind “what’s wrong with it?” or “that sounds cheap”! “What does everyone hope for but rarely gets? A great deal?” You get what you pay for and often a company that offers a service cheaply is trying to win your business with a view to a serious price hike three months later or they haven’t understood your requirements. In which case you will find yourself in trouble and the cheaper service could have a detrimental effect on your business. Can you afford for that to happen?
  6. Finally, know what area or business function of the business do you want to outsource? Why do you want to outsource? Be realistic about your expectations. Set a time limit to achieve your objective and most importantly work with a company that has the expertise and knowledge and can offer sound, impartial advice!
Digital Print Management are leading advisors in the outsourcing process. We are committed to ensuring our customers get the right solutions for their business which in turn results in cost and efficiency gains.

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How managed print services cuts the cost of office printing.

By implementing a managed print service strategy that saves time, money and is ‘green’.

I recently wrote about the differences between managing your print in-house V outsourcing/print management.

Here! Two similar sounding models yet distinctly different!

In the article, I refer to the management of print in-house often referred to as MPS (Managed Print Services)

The lines become easily blurred when talking about print management and MPS?

Many businesses don’t really understand or know the true cost of printing and often there is no method employed to manage and control print spend.

How can you take control of this seemingly mundane yet essential everyday business function?

Take Control of your print NOW!!

managed print services VS print management

Why implement an in-house print management  system?

Simple!

  1. To manage and recover costs
  2. Be able to print anywhere but with the right control mechanisms in place
  3. Reduce paper waste
  4. Increase productivity
  5. Reduce adminstrative costs
  6. Improve profitability by removing the hidden cost of printing and making it visible
Before I continue I should point out that a print management software/hardware solution employed in-house is not the same as print management and outsourcing all your finance/corporate printing.
Whilst the two sound similar and do cross paths, print management is a unique discipline that includes outsourcing anything from a business card, cheque to pens, mugs, mouse mats and all your finance/corporate print.
Managed Print Solutions are about managing the document process and print such as the printing of emails, photo-copying and document archiving in-house.
Implementation of an effective managed print program can see businesses reduce print costs by up to 30%.
Statistics can so easily be manipulated but for the purposes of this article let me provide an example of a US bank that implemented a strategic print management process and removed some 88 million print impressions, cut colour printing by just under 50% and paid for the initial investment within 8 weeks of it being set up. Impressive!

print management

How does it work?

A suite of print management software tools designed for companies, universities and commercial enterprises installed on your network that help you take back control of what you print by monitoring, measuring ongoing management of print activity.
The software is designed to gain a clear picture of what a company needs and then involves the deployment of the proper equipment to meet these needs.
It also helps employees become more aware of their printing habits and enforces print policies where necessary such as routing jobs to the most cost effective devices or by limiting the amount of colour printing.
Using print management software brings accountability and control of printed output to an enterprise, school, university, law practice, and accountancy firm.
User level reporting hi-lights awareness of print habits, costs and helps influence print behaviour to make employees think more before they hit the PRINT button.
It is a simple one step solution which keeps track of output from all connected printers and copiers by providing:-

Take control of your printed output!

  • Accurate – information for all print and copy costs
  • Secure – only releasing documents for output after users authenticate at the device
  • Mobile –  allowing users to send files to print from one location then pick them up across the building or campus
  • Green –  as it can discourage waste and enforces rules for  output
  • Reduce –  print/copy costs and waste around the organisation
  • Redirect –  large jobs +50 pages to a high volume multifunctional product (MFP)
  • Eliminate –  unnecessary printing by allowing users to delete jobs sent in error
  • Auto delete –  jobs in the print queue so they aren’t printed
  • Duplex printing – colour prints
  • Works with existing printers MFP’s and copiers
  • Adapts to any size

How do you regain control of your print spend and reduce print and paper costs?

managed print services

Easy. Click here and one of our advisors will call you.

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p60 Printing and how to manage it.

p60 printing solutions.

P60 printing time is looming fast for all Pay Roll Departments.

But fear not because help is at hand!

P60s  and p60 printing doesn’t have to be a cumbersome task that has to be managed internally.

Outsourcing this onerous task can free up the Pay Team department’s valuable time. 

How?

Simply outsourcing the process to an experienced outsource provider!

By taking your p60 datafile we remove the pressure to generate and distribute p60’s ahead of the annual deadline.

Once printed, we collate the p60s using our verification mailcare system ensuring that individual forms are checked and inserted accurately prior to despatch.

Outsourcing P60s; P45s; P11d’s can all be outsourced whilst you continue to manage and maintain the payroll printing internally.

Managing the processing and printing of P60s takes the responsibility away from you and places it firmly and squarely on the shoulders of the company fulfilling your P60s.

How does the process work then?

From the outset, we discuss with you your requirements, the layout and specific timescales and agree a time and date for you to send us a datafile.

In the first instance we receive a test file from you for us to evaluate. Upon agreed specification; proofs are created for you to sign off and approve. When you are ready and on the prescribed day, you forward a P60 datafile; which is proofed, signed off by you the customer and then the P60s are printed and despatched following our pre-agreed timescales.

I’ve never done this before, who will help me and what about security?

No need to be concerned! Our expert specialists will guide and keep you informed every step of the way. All data files are managed in a secure ISO27001 accredited facility with C&CCC (Cheque & Credit CCClearing Company) compliance.

Using a secure method of transmission (SFTP) a full audit trail is generated for each file and all the relevant and important steps are put in place to ensure compliance and data integrity.

I have data from different systems, how will you manage it?

We regularly receive data files from different I.T. systems or software even data files sent from multiple locations. As long as we are aware of this at the start of the project this can be integrated into the implementation process and managed appropriately.

How will you get the P60’s out to our employees?

You tell us what you want. We can either post them out or have the documents boxed and securely returned to a Head Office address. Or, we can post out and optimise the best postage discounts available; post to multi-branch locations for internal distribution.

But we process our payslips using pressure seal?

Again no problem you can have either format. If your employees are use to receiving pressure seal type payslips then we can send the same format for your P60s. Alternatively, if you prefer your P60s to be A4 and then inserted into envelopes we can manage that as well.

How do I know I can rely on Digital Print Management’s expertise?

Quite frankly you don’t and we can quite understand that you might be taking a big step into the unknown.

We understand the concerns and issues associated with outsourcing any project that is why we specialise solely in OUTSOURCING.

We are committed to ensuring that our customers get the right solutions you might say that it is a passion of ours making sure the customer gets what they want!

To make it easier we’ve written a few articles for you to browse which should help make selecting the right print partner easier!

There’s a selection on our blog, but we think these two will help! Why Outsource?  Top Tips to Consider before you Outsource?

For your p60 printing needs please contact Digital Print Management. Or call us for a free impartial discussion.

We focus on payroll, payslip printing and distribution so you can focus on business!

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12 Reasons to Outsource. Key points to think about when outsourcing.

Outsourcing

This is the second article featuring Reasons to Outsource.

When the word outsourcing is mentioned it conjures up fear, the prospect of moving to distant shores and the possibility of job losses but it’s not all doom and gloom.

Here are some points to consider when thinking of outsourcing:-

  • The incumbent supplier/provider is responsible for the management of the overall process but YOU the organisation need to actively be involved with the management of the relationship. It’s important you take your time when making decisions governing working with a service provider.
  • Establishing a good working relationship is paramount to ensure longevity of the service. Communication and regular review meetings throughout the set up process are essential.
  • The CEO/MD of the company intending to outsource should nominate a “champion”, a person within the organisation who has the responsibility to take control and manage the project through to completion.
  • It’s important that people within the business particularly within the area that is being evaluated for outsourcing have involvement with the project, they may have concerns over their jobs or the scope of their role within the new infrastructure so keeping them informed at all times minimises the fear factor.
  • If staff are being transferred to the outsourcing provider then you will need to consider employment legislation.
You are likely to get the best results when you are committed to staying with your service provider for several years because it increases the likelihood of building a successful and long lasting relationship.

Outsource

Should I Outsource?

The immediate benefits of outsourcing are fiscal but they can also lead to a better strategy for your company by divesting yourself of non core activities or processes that have outgrown your business and by removing these non core activities can reap substantial benefits.

Consider the following objectives:-

  • Will outsourcing free up your business to focus on its strategy irrespective of whether its selling widgets or providing services.
  • Is it going to improve the efficient running of an area of your business such as Payroll, Billing or I.T?
  • Will you gain a competitive advantage? Will you be better positioned to manage your costs by freeing up capital and having a better understanding of your fixed costs.

How to make outsourcing work for you?

Firstly there must be some form of measurement process and KPI’s (key performance indicators) to establish the success of the project from implementation through to completion of the project. On-going evaluations are key to ensuring continuing success and objectives are achieved.

Whilst financial benefits are important you might be outsourcing to improve a specific business function such as customer service, reducing errors in billing or decreasing the time taken to undertake your payroll.

  1. Know what you are getting into – these days you can outsource any area of your business – call centre operations, I.T. Payroll & HR, AR & AP, Corporate Print, Finance Accounting.
  2. Do you really need to outsource? Having covered this in previous blogs does outsourcing fit into your business plan – in other words do you have a function which has become a burden to the business and no longer fits in with your core business competencies?
  3. Selecting your service partner is also key in the successful migration of your business function. Note how I emphasise ‘partner’ rather than provider. If you are entering into a long relationship not too dissimilar to a marriage you need to take into account the culture, the background and the providers track record in providing similar services to the one you are seeking to outsource.
  4. Ensure you have an SLA that is flexible but at the same time articulates how performance is measured, what the pricing plan is, does it offer the flexibility to manage changes in your finances or industry, what happens if you introduce a new product or service and you are affected by a worsening of the economy your contract should also have an exit clause.
  5. Have a clear exit strategy too and make sure your SLA contains a clause to that effect, in the unlikely event the relationship ends prematurely or your company needs to bring the outsourced function back in house due to economic changes in your marketplace.
  6. Managing the process – the work or department that is being outsourced requires a period of time to understand and adjust to the process resulting in a change of roles for personnel and an increase in the time management spent in overseeing the migration. Are you prepared to spend the time managing the relationship?
    How to outsource

    Outsourcing what? How to manage the process of outsourcing anything?

  7. Work with an independent consultant who has knowledge of the process and will offer effective impartial advice and assist you in selecting the right outsource provider.

  8. What are the costs to your business if you choose not to outsource? Will your business be affected if you can’t afford to invest in the expertise or facilities required to drive your business forward?
  9. Weigh up the costs of administering the business function in house V outsourcing and this should include the costs of personnel and office space, consumables, equipment leased/hired etc
  10. What are your expectations? You need to be realistic and by having a good working relationship with your outsource partner you can set realistic and achievable deliverables right from the outset.
  11. On a final note, its always good to weigh the scales i.e. the FOR V AGAINST for outsourcing because when all is said and done its your business that will ultimately be affected by change and so outsourcing has to be a positive experience for both the company outsourcing and the service provider delivering the solution or service.
  12. An independent advisor will already have established a track record with a variety of service providers and solution specialists to ensure that customers receive the best service at the right price.

Unsure where to start or how to manage the process and need some advice?

Click here and we will contact you.

Call us now for a free, no obligation consultation 

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Outsourcing. Top tips to consider before you outsource!

I have often been asked the following questions when it comes to outsourcing:

  • Should I outsource or should I keep it in-house?

  • Is there a process or a mechanism to help me determine how I go about this process?

  • When or at what point should I view outsourcing as an achievable and realistic option for my business?

The following principles can be attributed to almost any business function that you are considering outsourcing from payroll, the Accounting function, corporate print to HR.

How to outsource

What is outsourcing?

A good place to start is to understand what the process of outsourcing is.

Outsourcing is the contracting out of a specific task such as payroll, invoice processing, billing, credit management to a third party provider often implemented as a cost saving measure for tasks that a company requires but is now finding onerous and time consuming to manage in-house.

SME’s to large companies turn to outsourcing to cut costs and streamline their operations.

What are the key points to bear in mind when you are considering the need to outsource some or all of a business process(s).

Key Points to Consider Before You Outsource?

  • Where are you in the outsourcing process? What does the outsourcing process conjure up in the minds of senior management? And what are the tangible benefits that can be derived from outsourcing?
  • What is your level of commitment to the process? i.e. Is it a fundamental part of your business plan to relinquish some if not all of a business function? How serious are you about outsourcing as a mechanism to streamline some of your business processes?
  • Have you decided how much time you are going to put aside to establish this as a project and move it forward?
    outsourcing

    Outsourcing some of your business processes can save you time and money!

  • Who or what person will “champion” the process and will take responsibility for steering the project to its conclusion? By this I mean having the authority to make the decision outright for your organisation to procure an outsource partner.
  • Have you determined what areas of the business might benefit from being removed to an external outsource partner?
  • What impact is the process (you are reviewing) currently having on your business? In other words is the business function now taking too much time away from your core business objective?
  • Is it costing or adding too much to your bottom line?
  • Is the process too manual intensive?  Is it not cost effective to make the investment to automate or mechanise the function in-house?
  • How many people are involved in the process? In other words has the function outgrown that of the organisation to a point whereby externalising this particular business process is a realistic alternative?
  • Are you able to quantify the time taken to get payroll/invoice processing complete and on time?
  • Can you quantify the cost of doing it in-house?
  • Is cost the main factor in considering outsourcing? What I mean is, are you basing your decision to outsource purely in terms of what it is costing you to do it in house? Are there other factors that might influence your desire to outsource?

Coming Next: The Benefits of Outsourcing for Your Business.

Do you have any questions you’d like us to answer?

Any anecdotes or experiences you’ve had with outsourcing that you can share?

If so please leave a comment we’d love to hear from you and we will feature your question in one of our up and coming articles!

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Outsourcing the pros and cons. Why customers are scared to change suppliers?

I want to share a true story.

In March of this year, Digital Print Management met with a £200m+ turnover company based in the Midlands.

How to outsource your print

Companies that offer a cost effective solution for your business needs are the companies you should be listening to because they provide expert advice.

The sales process began in 2008 with an informal meeting with the Finance Director; the key influencer and decision maker.

The company were already engaged in an outsource relationship for the printing of their billing and debt collection letters.

In spite of a very informative discussion we were unable to woo them with our offering.

The incumbent supplier we were advised were doing a satisfactory job but the FD insisted we stay in contact.

Note the word satisfactory. The following three years met with quarterly telephone updates, emails and general newsletters on Digital Print Management’s services and consultancy at the behest of the Company.

Then bingo, we were invited back again for a preliminary discussion.

We met this time with the Credit Manager (we had been referred by the FD) who was very open about the current relationship with their print partner.

Things were not good to say the least.

Co-incidentally, their print partner was a large UK based print management company. Information was forthcoming and we knew what the specifications and  requirements of the applications were and more importantly, what they were looking for in a working partnership.

A proposal was requested and dutifully submitted and received with gasps of ohh and aahhh as we showed savings in excess of £15,000 factoring in postage, paperless billing and processing costs.

The proposal was based on margins in keeping with our philosophy a fair price without de-valuing our service offering, skill and expertise.

A follow up meeting took place which was favourable with all the buying signs evident. We tested their buying signals to ensure they were keen to progress and a formal written request for us to proceed was issued and a live implementation date agreed at the end of the meeting.

There were calls to action and the prospective customer appeared to be content and confident with advancing the project.

And then SILENCE!

The silence was deafening!

Frustration at the short-sightedness of companies limited outlook!

We duly followed up our actions, with their call to actions, no response. We emailed again, no response, we called, guess what, no response.

I know that when a company wants to change vendors this can be fraught with many variables and we had said that if at any stage a well meaning person should question the decision taken that they should take one of our very special DPM sweets.

And if that didn’t work to alleviate any concerns then to telephone directly.

Because we all know what happens after you make that buying decision it’s called buyers remorse. The one that says I know it makes sense and I’ve made the right choice but then someone comes a long and happens to say oohh is it the right time to be changing suppliers now? Or words to that effect.

One seemingly throwaway comment suddenly propels a buyer into panic mode questioning the decision he/she has made.

Irrespective of how well the service provider has absolutely done the best job and closed ‘that sale’.

The success in changing the vendor is determined by the longevity of the current relationship.

How was the supplier relationship founded i.e does the MD happen to be socially connected with the MD of the print company?

Who else in the company does business with the print vendor?

The inertia to change has to be there and in this case was all too evident!

As far as Digital Print Management was concerned it clearly was a bench-marking exercise and was a poor way of the prospective customer fleecing us of information of our services and solutions.

They probably went back to their current vendor and no doubt bartered for more discount.

And then I stumbled upon an article which said that buyers are not interested in developing connections or relationships for the long term they prefer to connect and disconnect as their requirements change or, as needs arise.

I consider this to be a very transient relationship bourne out of a short-term need rather than a long-term productive relationship.

It is a fleeting transaction between that of the buyer and that of the vendor providing the service/commodity.

Depending on the size of the purchase will dictate the duration of the buying process.

To quickly illustrate buying a pair of shoes is not like buying a house, the former taking minutes and the latter being a long drawn out process requiring trust on the part of the estate agent and solicitor!

Surely any business relationship can prosper if both parties are keen to work together to reach a fulfilling and satisfactory result in which both parties benefit but this can only be achieved over a period of time, right?

Was it the fact that it was just too much hassle to move supplier? Is it the fear factor i.e. better the devil we know which far outweighs the need to change? Or is it quite simply that business relationships are formed only when the need arises.

Is customer loyalty outdated?

After all I am sure you’ve experienced speaking with a contact one week only to find the following week they’ve moved jobs!

What do you think? Do you have any similar experiences to share? Do you agree that buyers see suppliers as “loose connections” there only to satisfy an immediate requirement?

Please feel free to leave a comment and share your experiences!

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