Business Outsourcing at the Orbit Finance Limited - Essay Example

Business outsourcing - Contacting and Procurement case study 2 18/10/14 Business outsourcing at the Orbit Finance Limited Orbit finance is a financial institution that was constituted around 2007 to offer financial services to the people of Michigan in the United States of America. We mostly serve the working class, people who are in business, the college and university students, and those are willing to enter into various business. Since its founding, the firm has gained a lot of popularity both within the city and it outskirts. The popularity have been as a result of the excellence service that we have offered to our customers. Our interest rate and the repayment structure have also been encouraging our customers. We have been considering their revenue and therefore we negotiate with them on the repayment. Our flexibility in terms of interest on loans has also been an admiration to many. Our institution have been offering different interest rate depending on the amount borrowed and the repayment time. The greater the sum borrowed, the less the interest charged. Also, the shorter the repayment time, the less the interest charged. We also offer monetary advice on venturing and savings. These additional services are also important to our customers since some of them may be willing to start a business but lacks the knowledge and how to begin. Our services are, therefore, outstanding, and we are getting new customers every day. We are, therefore, facing some challenges in coping with the ever increasing customers in some areas of operation. The areas include; finance and accounting, investment and management, and procurement (Davis & Heineke, 2009). There are many factors that affect the decision of a firm to outsource some functions. The table below gives some of these factors. Services to be outsourced 1. Finance and Accounting After a careful consideration, the firm management have decided to outsource this sector of operation. Accounting is one of the crucial department in any institution more so a financial institution. We are looking to make sure that our financial operations reach a professional height. The financial companies that are willing to work with us must have a reputable past. The reason is that we want serious company that will take our operations to a notch higher. The following are the requirements for the companies bidding for the post should possess. The company should have a professional human resource department that is approved by the professional accountancy authority in the country. They will, therefore, be a requirement of the approval certificate of the workers in the company. The firm should also be enumerated with the registry of the companies according to the laws of the country. A certificate of registration will be required before the company is given the go ahead with the work. The consideration of this case will be necessary as the financial department is very crucial in the running of the company. When a controversy arises in the future, it will be easier for us to lay down our case in the court of law if only we deal with a registered company. A company that is willing to assist us with the financial matters will have to be experienced in offering financial services in accounting. We are looking for a reputable company that will be able to handle technical, financial issues arising in the course of our operation. Apart from the accounting services, the company need to be experience in advising the financial decision that a company should take in their effort to realize the goals they have. The aim is because we need to win the existing competition existing in the market. The financial advice will help us plan for our goals by in turn offering the advice to our customers. 2. Investment and Management. Our firm cannot afford to lose the customers due to poor management of our resources. We will do what it yields to have the finest management of the resources that we have. The firm management has thus opted to look for a company that will advise us appropriately on the investment outside the financial field. The step will enable us to have an extra income from the investment. The revenue will in turn be injected to our institution and be helpful in boosting our business (Decker, 2014). The investment will also comprise of opening up new branches where investment of our program will be established. The branches will be necessary for ensuring that we can reach our customers who may be some distance away. The firms that are willing to liaise with us in this field must possess the following qualities. The company must be listed with the office of the registry of the companies as required by the laws of the country. The requirement will be necessary since the fact that we are dealing with a genuine company will be established. The fact will also be important if there will be an issue of legal proceeding in a court of law since the genuine of the firm will be required. A company that is looking to establish a mutual relationship with us must possess creativity in investment. They need to instruct us on the best fields to explore for investment. Their skill in the management of resources must create utility within the firm and to the customers. Given this quality, the company will boost our investment program that is portrayed by the vision of the firm. 3. Procurement. We are also considering outsource the procurement services in our firm. The firm usually operate using a lot of paperwork and machineries such as computers. Sometimes when we are expanding the range of our business it becomes difficult to acquire such instruments in urgency. We are looking for efficiency and flexibility in procurement that will make us work in a much faster rate thus meeting the needs of our customers in time. The action will motivate our customers thereby creating the necessary trust required in our business. Apart from being required to be a registered company, the bidders for this position will also supposed to have the following qualities; The firm must be informative in the kind of procurement that our company requires. The facilities must be necessary for influencing the service transfer to our clients (Davis & Heineke, 2009). The company should be able to research on the required facilities before making the decision to advise us on the procurement. The company must also be able to purchase and deliver quality materials that are in need in time. The company should provide these items at their cheapest cost (Decker, 2014). The efficiency and cost effectiveness is our main agenda in outsourcing this organ of service. The company is considering to give the contracts for the outsourced services on the basis cost-plus meaning that their services must be cost effective and of high quality. According to our research, the outsourced services will save our firm about 36% of the total cost. When invested in a proper way, the amount saved will be able to generate high profit to our firm. The company’s goal to make our customers is financially ready in their daily undertaking. They need to create wealth without worrying about their financial partners. Therefore, we need to give them the support necessary in their businesses. Their achievement will be our victory (Decker, 2014). The national vision of having citizens who are self-depended will be achieved via our vision and mission of helping people with financial services. Our collaboration with several universities and colleges have seen students accessing funds for their education. The country will have a much better future when the youths invest much on education. We allow them to take the fees loan that accrue very small interest rates. We prospect to satisfy our customers in association with our partners. The Chart below summarises the expected advantages of outsourcing in our company. References Davis, & Heineke. (2009, September 27). Service Innovation II: Designing the Service Delivery Process. Retrieved from www.summersoc.eu/summersoc2011/wp-content/uploads/2011/01/Service-Innovation-II-Designing-Service-Processes-september-27-2009.pdf Decker, K. (2014, June 10). Price Based Selling vs. Value Based Selling. Retrieved from https://www.linkedin.com/today/post/article/20140610190356-56984476-price-based-selling-vs-value-based-selling Read More