internal

Background:

  • Companies tend to specialise on their main activity; as such,  management meetings and focus tend to develop and improve solely core processes;
  • Investments in non-core activities tend to decrease to zero;
  • Consequently support functions tend to crystalize;
  • Processes, technology and support functions teams have become outdated;
  • Large turnaround happen when top management realise how far they are from an acceptable situation.

The solution:

  • Act smartly and preventively;
  • Outsource activities that are unnecessarily time consuming  in terms of management to external companies that are significantly more focused;
  • Get advice from independent consultants who know the market, the details and practical aspects of externalization process;
  • Be aware of the latest services offered by outsourcing companies, including staff transfer to the service providers workforce;

For more than 40 years we have had different perspectives regarding Outsourcing and its wide range of associated services.

Surely every CXO has experienced throughout the years different realities and benefits from externalising certain activities.

Nevertheless, outsourcing offers significant opportunities to grow and reach new organizational equilibriums that may have never been anticipated, and yet are real possibilities for improvement.

To support this statement you only have to look at a few aspects and simple facts that happen every day within your company’s internal support function teams, and compare it to companies that focus their activity towards servicing clients through Outsourcing Services.

Examples and behaviours may vary, nonetheless, just consider how often you sit with your COO or CIO to review details and optimize everyday processes of your support function teams. How often does your middle management layer bring new ideas to improve and transform the way their teams perform on daily activities, and how often do you sit on any meeting with your support function managers to discuss the development of the function in the organization.

In fact, behind the trendy expression «focusing on the core business» is the fact that now, CXOs have to spend time and investments on internal routines, processes and meetings of support functions. Yet such resources allocation is necessary as your processes and internal teams cannot improve by themselves.

Also, the focus that you have with your clients, your sales forecast, your cost structure, your production processes or any other core function, Outsourcing Services companies have that same focus on improving their processes and trying to identify how to improve margins with the running contracts and how to beat competition in the next sale.

This is the key aspect why there is still a lot to be improved with externalization, market pressures tend to drive companies behaviours to focus on core activities and year after year be increasingly specialized on a decreasing number of processes, while support functions tend to crystalize and be abandoned because of a shortage of means and funds for any improvement activity.

At Eurogroup Portugal, we have identified this need, anticipated this trend and created a dedicated senior team, staffed from both leading multinational Outsourcing companies and sectors experts, to help our clients evaluate and externalise their support functions though well-structured BPO or IT Outsourcing contracts. We ensure our clients benefit from the best concession contract service providers are willing to accept in order to beat competition and get stable market share through multi-year contracts, capturing savings from 30 to 40% without any prior investment.

Written by João Castro and Samuel Tuati, Partners in Eurogroup Consulting Portugal
June 2014

Contacts:
João Castro (joao.castro@eurogroupconsulting.pt mobile: +351914593428)
Samuel Tuati (Samuel.tuati@eurogroupconsulting.pt mobile : +351917257552)