You are losing 10% of potential profits due to a shortage of staff every financial year. Can outsourcing solve this issue?
August 18, 2017
Recently, a service company in the UK did an analysis of the costs associated with staff shortage on weekends, night timings, and bank holidays and was astounded to find that they are losing a sizeable chunk of their potential profit as losses. But is that a story for the entire industry?
Based on our experience in the different industries we serve, this is often a common problem for our clients in the UK and most of them are helpless when it comes to bringing down these losses through subcontracting. While this might not be the case for every enterprise, It is imperative that you analyze your own balance sheet and figure out if you are losing money due to these staff shortages.
Let us break it down for you and help you to analyse your case. Let us assume we have a client XT, who deals in property & facilities management. They have given us, an IT offshore services company, the task to identify the losses that they are making by having staff shortages. These are the top reasons for their losses:
- Infrastructure expenses (Rent, Electricity, Operations, etc)
- Overhead costs (High reimbursements to skilled employees who agree to work out of hours)
- Financial Opportunity losses (Possible future revenue & profits missed due to lack of workforce during out-of-hours)
As part of our offshore outsourcing solution, We informed them about the above-mentioned expenses and astonishingly, they did not realize until now the extent to which they were losing their revenues. As part of the solutions that we offered to them, we initially drafted a plan that tackles all three key issues of infrastructure expenses, overhead costs, and financial opportunity losses individually through a team of skilled employees who matched the required skill set for each issue. We also arranged exceptional trainers as part of our outsourcing call center services who could support our employees to develop skills that were specific to the client’s requirements.
In mutual agreement & with mutual effort, we were able to significantly bring their losses to a halt and led them to save 7% of the total losses which eventually converted into their profits. We also took a step forward and automated all their processes with high efficiency eliminating any need for multiple follow-ups with us.
We, at Unipath, are always seeking projects that challenge us and make us towards solving complex issues of our clients through dedication to our values of integrity, excellence, respect, and punctuality. Reach out to us at sales@unipathsolutions.com and our dedicated key account manager would arrange everything for you. We look forward to being your partners in your growth journey.
