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Why a regional outsourcing model could be a better strategy for your business.

When strategising your facilities management service delivery, there are several models to choose from. One option is a regional outsourcing model.

Regional outsourcing takes a global outsourced contract and procures it by region, delivered by local service providers. It’s a popular model for many clients at Macro. It is often a better strategy for businesses with a high quantity of sites in an expansive global or country-wide portfolio, instead of a traditional outsourced model.

What are the benefits of regional outsourcing?

1)      Cultural and communication alignment

A regional outsourcing model partners with service providers in a similar geographical proximity to you. This enhances communication and collaboration with shared time zones and language proficiency removing barriers to success. It also improves understanding of local nuances and cultural alignment between the partnership.

2)      Cost consistency

Operating costs can be at risk of regional variation. A regional outsourcing model can help to ensure cost consistency across the region, with lower labour costs, lower transport costs and minimised currency exchange rates. It may also benefit the offer of competitive local rates, whilst quality and compliance are maintained.

3)      Local compliance and regulations

Understanding of local laws, regulations and compliance is imperative in any business, especially industries such as finance, healthcare, manufacturing, and data privacy. A regional outsourcing model will ensure suppliers are already familiar and complaint with these complex requirements.

4)      Agility and infrastructure to scale

Regional outsourcing allows businesses to scale and adapt their operations efficiently. As demand fluctuates or the business shifts, you can quickly adjust outsourcing arrangements without significant disruptions to your daily business operations.

5)      Local recruitment and resourcing

Regional outsourcing gives you agility in staffing levels and resource allocation. Local, skilled professionals will better understand local business practices and customer culture. Leveraging local expertise can lead to improved service delivery, employee engagement and innovation, as well as social value putting local money back into the local community.

6)      Risk mitigation

Diversifying your supply chain and reducing your dependency on a single region reduces your risk, for example in the event of a natural disaster or political instability. When one region is negatively impacted, operations can continue elsewhere with their regional operational teams who are not impacted. Risk diversification enhances your business continuity planning and resilience.

7)      Transforming with technology

Some regions specialise in specific industries or technologies, such as Silicon Valley. Businesses can access this local expertise and infrastructure in these specialised services. Collaborating with these local providers will simplify technology integration and specific knowledge transfer.

8)      Long-term partnerships

A regional outsourced model can help to nurture trusted long-term partnerships between a business and their local service providers. By proximity, the service providers become an integral part of the company’s ecosystem, mutually striving for innovation and growth.

In summary

A regional outsourcing model can enhance your facilities management services and business, compared to a fully outsourced model. Improvements include:

·       Business continuity

·       Communication and collaboration

·       Cultural alignment

·       Skill transfer

·       Risk mitigation

·       Agility and scalability

·       Recruitment

·       Social value

·       Compliance.

Ultimately, a regional outsourcing model can deliver successful facilities management services with a local approach, through trusted providers such as Macro.

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