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Outsourcing &
the SME Sector
… the background & an Irish context…
Olwen Dawe
Irish Business Intelligence
www.olwendawe.com
Outsourcing and the SME Business Model | Presentation to GMIT Business Students
Why?
• Cost – based on budgeting / time of “life” in
business;
• Efficiencies – needs-based, as-and-when
required;
• Business model – driven by internal priorities,
structures and requirements;
• Size and scope of business.
Outsourcing | HR | Context
Outsourcing | SMEs | Context
Outsourcing | SMEs | Context
Outsourcing | SMEs | Context
Outsourcing | SMEs | Context
SMEs | Why outsourcing?
•
•
•
•

Focus – core business activity;
Expertise – when it is required;
Additional – capacity at certain junctures;
Technologies – new and enhanced [staying up
to date].
Silicon Republic 2007
‘Hassle factor’ influences SME outsourcing
Top Areas for Outsourcing?
Barriers?
• Uncertainty – quality control;
• Apprehension – of benefits / goals of
outsourcing;
• Management of providers – concern over
issues;
• Confidentiality, ethics, data security…
• Can end up being a bad investment…
Restructuring in SMEs: Ireland
© European Foundation for the Improvement of Living and Working Conditions, 2013
Two views…
SME Outsourcing Communications Strategy
‘It offers the flexibility but also the expertise when
we need it. At a cost we budget for. It’s more
measurable and suits our business model.’
SME Offering Outsourced Services to Businesses
‘I deliver services which allow businesses to spend
time on their core business activity - taking away
the headache day-to-day and giving business
owners back their time to spend on more critical
business issues’
Other Factors for Consideration
• Economic realities – from 2007-2010, SME sector
lost 15% of its total workforce;
• New Entrepreneurs – ROI on outsourcing must
be clear…
• “Intrapreneurship” – business owners looking for
committed, contributing staff – long-term-ism!
• Ultimately… it’s about the ‘fit’ with business
values and model.
Anticipation of Future?
• Compelling offering and fit to company –
“what can you do for me”?
• Return to growth… employment increases…
• Scope for multiple / combined offering
• SMEs scaling = where does the contractor sit?
Know your role!
In Sum

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Outsourcing and the SME Business Model | Presentation to GMIT Business Students

  • 1. Outsourcing & the SME Sector … the background & an Irish context… Olwen Dawe Irish Business Intelligence www.olwendawe.com
  • 3. Why? • Cost – based on budgeting / time of “life” in business; • Efficiencies – needs-based, as-and-when required; • Business model – driven by internal priorities, structures and requirements; • Size and scope of business.
  • 4. Outsourcing | HR | Context
  • 5. Outsourcing | SMEs | Context
  • 6. Outsourcing | SMEs | Context
  • 7. Outsourcing | SMEs | Context
  • 8. Outsourcing | SMEs | Context
  • 9. SMEs | Why outsourcing? • • • • Focus – core business activity; Expertise – when it is required; Additional – capacity at certain junctures; Technologies – new and enhanced [staying up to date]. Silicon Republic 2007 ‘Hassle factor’ influences SME outsourcing
  • 10. Top Areas for Outsourcing?
  • 11. Barriers? • Uncertainty – quality control; • Apprehension – of benefits / goals of outsourcing; • Management of providers – concern over issues; • Confidentiality, ethics, data security… • Can end up being a bad investment… Restructuring in SMEs: Ireland © European Foundation for the Improvement of Living and Working Conditions, 2013
  • 12. Two views… SME Outsourcing Communications Strategy ‘It offers the flexibility but also the expertise when we need it. At a cost we budget for. It’s more measurable and suits our business model.’ SME Offering Outsourced Services to Businesses ‘I deliver services which allow businesses to spend time on their core business activity - taking away the headache day-to-day and giving business owners back their time to spend on more critical business issues’
  • 13. Other Factors for Consideration • Economic realities – from 2007-2010, SME sector lost 15% of its total workforce; • New Entrepreneurs – ROI on outsourcing must be clear… • “Intrapreneurship” – business owners looking for committed, contributing staff – long-term-ism! • Ultimately… it’s about the ‘fit’ with business values and model.
  • 14. Anticipation of Future? • Compelling offering and fit to company – “what can you do for me”? • Return to growth… employment increases… • Scope for multiple / combined offering • SMEs scaling = where does the contractor sit? Know your role!