The document discusses outsourcing among small and medium enterprises (SMEs) in Ireland. It outlines some of the key reasons why SMEs may consider outsourcing, including reducing costs, gaining efficiencies by accessing expertise on an as-needed basis, and allowing them to focus on their core business activities. However, the document also notes some potential barriers to outsourcing for SMEs, such as concerns about quality control, management of outsourcing providers, and data security issues. Overall, the document suggests that whether outsourcing makes sense depends on how well it fits with each individual SME's business model and priorities.

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!

15. In Sum