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The MHC Blog

Powerful Business Insights for Succesful Leaders

Why Not Outsource?

Companies are certainly going through challenging times now.  Many Companies are having to tighten their belts, reducing costs as much as possible whilst at the same time maintaining and often having to exceed the level of service they provide. 

 A recent article in Entrepreneur Magazine “How to Build a Better Business with Outsourcing” https://www.entrepreneur.com/article/204652 got me thinking, why aren’t more Companies outsourcing their key support services?

This is an ideal time to start outsourcing key functions to specific Companies that specialize in the services they require, allowing for a senior professional to take care of a function on a “charge on hours used” basis therefore saving money. By outsourcing the day to day back-office tasks, the Business Owner has more time to focus on generating income.

 Within the GCC region outsourcing to a professional Service Provider seems to be a new phenomenon. Companies appear to prefer a headcount sitting in their office working 9 hours a day, 5 days a week, to do a job that outsourced provider could be completed in less than an hour a day.  

In my humble opinion, this is a false economy. Business owners forget the hidden costs of their Employees – 4 weeks paid holiday a year, medical & life insurance, paid sick leave, visa, ID cards, annual flight ticket, gratuity accrued.  And then the really hidden costs – IT equipment, phone, seat, desk, the additional office space cost to seat them in your office, the tea and coffee drunk in a day, the time it takes to manage them, keeping an eye on their work timings, making sure they don’t abuse the internet surfing social media – its very tiring and soon adds up, so why do they still insist on “old school” thinking at a time when every Dirham spent counts?

Hopefully its lack of understanding and knowledge of the ways they can outsource and save money rather than empire building a huge team.  Certainly, there will be a trust element involved, but as the world and IT has innovated so quickly, these types of challenges are no longer a legitimate push back.   As the Entrepreneur Magazine article points out, “more small businesses are outsourcing tasks these days because technology has advanced to the point of professionals being able to work from anywhere in the world, coupled with the availability and accessibility of extremely qualified professionals who have decided or been forced to leave the corporate world”.  I would add that business of all sizes should review their headcount and look at the possibility of outsourcing key support functions.

There are many support services you can now outsource.  HR Support, IT, Web Designers, Graphic Designers, Administration and Finance (to name a few) are all readily available.  By using these services you are gaining the help, support and guidance of a senior professional well versed in the relevant local rules and regulations, ready to help business owners cut through the unknown and provide a simple and straightforward service that makes a real difference to the Company whilst saving their costs.   

To give an example, at MHC, one of the services we offer is a virtual HR department for Companies.  Topline, we keep the Company legally compliant to local legislation whilst providing all HR services they may require.  This includes localizing global Company policies, acting as advisors for all HR issues, preparing all Employee communication, keeping Employee records, track Employee engagement and performance, remind and follow up on all HR services.  We work with a shared Dropbox to allow for total transparency with each specific Company and invoice for the time used at the end of each month.  This gives the CEO’s piece of mind that their Employees are looked after by a HR support professional, ensures fairness and consistency of message whilst leaving them to focus their time and attention on building and growing their business.

Consider outsourcing and relieve your business stress and financial burdens today.  Download our 5 steps to consider when looking to outsource.

Download the 5 Steps to Outsourcing Guide

 Read More from The “How to Grow Your Business” Mini Series: 




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Claire Donnelly

Written by Claire Donnelly

A Business Growth and HR Strategist helping medium size companies to Scale Up using proven systems. Claire is an MCIPD qualified Human Resource professional, with 25+ years’ experience working within various industries and 10 + years’ experience of HR practices throughout the Middle East. As a HR Generalist she has held a number of senior and Board level HR positions. She is experienced in working at both strategic and tactical levels.

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