Outsourcing Where to Start

Step 1 - Pre-Research

As with any project the key to it is understanding what you are trying to achieve as an outcome by undertaking it. This does not mean setting the objectives of what you want to see but looking at the landscape and understanding what you could achieve.

In the case of outsourcing a function or process it is understanding what benefits might be achieved through doing this whilst also the issues as a result, for example TUPE. 

The best place to start for this information is by consulting a specialist in the area that you are looking to outsource and understanding from them what they need to be able to provide you with a solution. In the case of a finance process or function the following items you should be looking to provide:

1. The volumes for the different areas of processing that takes place.  In high-level terms you will need to provide:
   • Number of supplier invoices received
   • Number of customer invoices generated
   • Number of activity codes, departments and analysis codes used
   • Number of reports generated each month, quarter and annually
   • Number of employees along with average turnover per annum
   • Number of bank accounts
   • Frequency of gift aid returns
   • Frequency of petty cash being reconciled
2. Cost of the process or function.  If you are not sure then the best way to assess this is to use our calculator it will assist in pulling together the information in a manner to work out the cost.
3. What accounting system that you are currently operating on.
4. What are the issues that you face as an organisation in terms of the finance process or function:
   • Consistency of information
   • Type of reporting
   • Timeliness of processing
   • Expertises and breadth of knowledge

It is also worth at this stage before moving on to the next stage talking to or meeting with a professional that provides these services to understand what else is involved in the process of outsourcing a function or process along with the time frames involve.  In looking at the time frames it is possible to completed the process in 4 to 6 weeks but realistically we would recommend 8 to 12 weeks from when others become engaged in the process.  At this stage be prepared to ask a great number of questions as it will assist you in refining your options, process to undertake and more importantly your objectives. Also it is worth noting who is willing to assist you with developing an understanding of what is required as they will be the ones that are more likely to work with you as a partner in the future.

Now that you have a number of answers, more information it is time to turn to who should be involved in the process.  Next month we will cover this area as well as how they should be involved and what ensures a long lasting result when outsourcing.

If you would like more information on what to do at the start please contact us on 01793 554 204 or email marketing@charitybusiness.com.