29

November

In the perfect project, every component would fit seamlessly together with every other, be completed on time and delivered without any waste. This of course can only happen if each element is completed in the perfect way, by the perfect person.

In reality, this is virtually impossible.

Instead, we either end up using in-house resources – convenient and seemingly cost-effective – or we outsource tasks to a third party provider. Many firms do this with their non-core activities.

And because it’s generally easier and more convenient to use the ‘devil you know’ rather than find someone new, existing suppliers are often asked to take on an ever-widening range of work. Good for them, less so for the customer. Out of their comfort zone, work takes longer to complete, often with a drop off in quality. There also tends to be less scrutiny of costs, which keeps them higher than necessary.

Better, more cost-effective results

Consequently, more organizations are using ‘fractional outsourcing’ as their procurement model. This involves dissecting a project into discrete, quantifiable chunks of work for which best-qualified potential suppliers are invited to bid. This is essentially the model that is often used in automobile manufacture, where the production of individual components is farmed out to specialist makers.

Because each component is now being made by specialists, not only do you end up with the best possible result, but because suppliers bid fresh each time, you enjoy the most competitive pricing.

In other words, no more long-term supplier relationships.

As well as this, because of their expertise, there is also less need to manage these suppliers, so your time is freed up to focus on other key areas of your business.

Fractional outsourcing and digitalization

Fractional outsourcing is an interesting approach that has the potential to be applied to any larger project, including the digitalization of your business. In fact, especially so, because the many different specialisms involved make it difficult to stay on top of them all.

So perhaps it’s time to rethink the way you buy digital services, and a good place to start is with our Digital Index. By using this unique tool you will gain a real insight into how you might dissect your business into different digital projects. You can calculate your Digital Index HERE.