If John Stith Pemberton knew just how much money he would save by resourcing his products to third-party providers when he founded Coca Cola in 1886, his company would’ve conquered the beverage market way earlier than it did.
Resourcing the skills and talents of external providers isn’t a new concept; Coca Cola had their bottling operations and transportation done by third-party contractors many a year ago. With this, Pemberton was able to concentrate on building the brand, while all he had to do was supply the dark, syrupy concentrate.
In today’s digital world, competition in the business sphere is fiercer than ever. This consequently brings the need for cutting operational costs and directing resources to the core activities that move the business forward. Cutting down these costs has always been a risky move for companies, mainly because it’s uncertain whether the decision will have a positive impact on the long run. Choosing the right way to do this is just as troubling.
While conventional business models can deliver only a 30-40% cost reduction, resourcing has proven to deliver as much as a 65% reduction in operational costs. If all processes are defined and implemented accurately and the relationship with the vendor is well-managed, resourcing can deliver huge benefits to a company.
How Much Can You Actually Save?
Choosing a vendor who offers best-in-class methodologies is the first step towards reaping the benefits of resourcing. Using these methodologies, the third-party specialists would be able to improve and optimise your processes, all for a fraction of the price you’d be paying in the UK. Over time, you can easily scale your operations and grow your team!
The overall cost that you must bear as an employer is no laughing matter. According to a report by Payscale, the median yearly wage for a digital marketer in London is around £35,000. Divide this number by 12, and you’re paying a monthly salary of around £3000 for one employee. Now, imagine being able to hire a 5-man marketing team for this amount. The money you’d be saving on employee-related costs is incomparable.
Resourcing is Not a Foreign Concept
As history tells us, today’s giants like Coca Cola reaped the benefits of resourcing a long time ago, which helped them get to the point where they’re at today. And back then, the competition wasn’t nearly as big as it is today. According to a recent study by TPI, 81% ofmid-to-large UK companies plan to increase offshore recruiting in the next 2-3 years. The fact that more and more companies are recruiting externally, just shows that resourcing is no longer a foreign concept. So, why not give it a try?
If you’re interested to learn more about how you can cut costs by resourcing, get in touch with one of our representatives today!