Co-sourcing is the new outsourcing

As he set out his spending priorities for 2016, the chancellor predicted the UK economy would grow by 2.4 per cent, yet many organisations remain cautious about returning recruitment to pre-recession levels, preferring to run far leaner operations.

And while many firms choose to improve efficiency and profitability through outsourcing non-core business processes, I believe co-sourcing is the future.

The benefits of outsourcing have been evident for some time, but many firms are cautious about transferring sensitive and confidential services to external providers. There is a perception that some service providers utilise a largely anonymous workforce, often overseas, which can cause real problems for UK-based firms.

It is this perceived lack of transparency or control over the process that has made some firms wary of outsourcing. Co-sourcing, however, relies on a service provider bringing together a dedicated team to undertake work for each client, as an extension of their in-house resources.

Integrating internal and external resources in this way ensures services are delivered more efficiently. Co-sourcing guarantees that firms have the necessary resources on hand to cope with increased workloads, but it does so without affecting the rest of the firm or adding to the headcount.

Agreed minimum service levels ensure firms avoid the need to pay underused staff when projects are finished or workloads decrease. This ability to turn support on and off is a significant benefit for firms that are determined to concentrate on the core services that deliver profit.

Data security

It is essential that due consideration is given to the level of data security, confidentiality, work tracking, and control needed, particularly in light of the recent Law Society practice note on outsourcing.

With co-sourcing, the client's data never leaves the firm's servers, as UK-based legal secretaries are granted secure remote access to their systems.

By working within the client's system in this way, co-sourcing ensures data remains secure, and, importantly for UK firms, they can keep data on their servers or those being used in UK-owned data centres. This helps alleviate fears about attempts by US authorities to access data held on the servers of US-owned data centres.

The best co-sourcing solution is developed when the service provider's typists spend time with the client to allow each team member to familiarise themselves with the system, while being taught the unique working methods of the firm and its business ethos.

This level of team integration and understanding allows work to be completed quickly and efficiently, complementing any in-house resources.

Co-sourcing is suitable for a range of essential services, including transcription of digital dictation files, copy typing, file opening, data input, and document production.

Cost versus output

Cost is an important consideration. Paying only for the time of the co-sourced team and not their national insurance contributions, holiday pay, sick days, and so on, is making co-sourcing increasingly attractive. When accurate evaluations are made of cost versus output, co-sourced secretaries outperform their in-house counterparts by a large margin.

For firms that have downsized, co-sourcing means there is no need to increase office space. This will keep rent to a minimum, especially for city centre practices with offices in high-rent locations.

Due to the increasingly international nature of their work, many firms now require 24/7 support, but trying to get people to work late and having to pay overtime can be difficult. Co-sourcing makes evening and weekend working possible, with security and confidentiality compliance measures already in place.

When seeking co-sourcing partners, ISO 27001:2013 certification is a good starting point, demonstrating that the service provider operates an effective information security management system and is registered with the Information Commissioner's Office.

Using certified partners will ensure there are no compliance issues, no matter what data is being worked with, avoiding the risk of reputational damage resulting from staff taking work home on unsecured devices.

Outsourcing will continue to play an important role in the success of firms of all sizes. But wider acceptance of the more cost-effective co-sourcing approach will undoubtedly lead to fewer in-house secretarial and support staff, helping the firms of the future to be more efficient and profitable - which has to be good. SJ

Maxine Park is a solicitor and co-founder of transcription service provider DictateNow