The Perfect Co-Sourcing Example
An example of a full service co-sourcing offering that brings co-sourcing to life, helping you understand exactly how co-sourcing can benefit your business.
FACT3 is a leading UK co-sourcing partner, focused on the delivery of Accounts co-sourcing; HR co-sourcing and IT co-sourcing, or, a blended combination of all three tailored to the specific needs of your business.
Here we’re going to provide you with a co-sourcing example, using an anonymous but real life organisation. This will help you decide whether you could see co-sourcing working as a solution for your business.
Phase 1 - Finance
There were a number of potential Venture Capital investors who would be a good fit for funding. Fact3 used their network to set up meetings with these VCs and the finance specialists spent time setting up the accounting systems and took financial control in developing and managing the forecasts and management accounts.
Robust financial management and clear, high quality and visually appealing reports were required under VC scrutiny, and Fact3 joined the Chairman, MD and FC on the board to provide strategic FD support to help shape the business plans and align them with financial forecasts to secure funding.
Phase 2 - HR & IT
Without HR support, developing the right people strategy to support the business growth, running an end to end recruitment process and creating policies and contracts for new joiners was difficult. Using a combination of board level strategic HR advice and remote support from Fact3’s HR team we were able to achieve full HR compliance.
Fact3’s IT team got straight to work to build a foundation that supported growth. We began by migrating all the licenses to Office365. We set up a remote help desk to support all prior and new candidates with day to day queries. We took over all IT supplier relationships, managing equipment renewal and renegotiating contracts more favourably. We also ran an IT health check to ensure the business had adequate cyber insurance, IT policies and disaster recovery procedures.
Underpinning the day to day IT support, Fact3 provided a strategic IT review to ensure the IT solution was scalable for growth.
Phase 3 - Ongoing Planning and Support
VCs would often demand a full time FD in role, but they agreed Fact3’s support would be just as valuable and this avoided a costly full time appointment. Fact3 continue to be a key part of the board, supporting commercial decision making and providing advice based on years of experience supporting growth businesses.
The 3 Critical Elements of This Example
This case showcases some of the best advantages of engaging a co-sourcing partner over a full outsourced provider.
Flexible and bespoke - We were aware of the budget from the outset, and were able to prioritise where board level strategic advice was essential, vs. remote teams to support day to day activities in line with the budget available. When investment was secured, we were able to offer part time FD advice in line with the VC’s request, avoiding a costly FTE. In time, the requirements and budgets may change, and Fact3 will be able to realign support and investment accordingly. Co-sourcing provides an incredibly agile approach to outsourced business support.
Remote and onsite support - At the moment, the business mainly requires remote support, onsite support is only provided at board level. As the business grows, resource split will be continually reviewed and adjusted, and based on future growth requirements we may put a Fact3 Accounts, HR or IT experts onsite part time and reduce remote support.
High value networking - Leveraging Fact3’s extensive network, we were able to quickly identify a list of potential VC partners, facilitate meetings and secure investment. Without access to this trusted network it would have taken the business a lot longer to secure funding which would have impeded growth and potentially a loss of competitive advantage.
Co-sourcing is the perfect solution for a wide range of organisations. If you think your business could be in need of a co-sourcing solution, book a no obligation consultation with one of Fact3’s experts here.
The business challenge
The organisation had been set up in 2009, from a slow and steady start, they began to see rapid growth in 2012. They quickly identified they were going to require investment to fund this period of growth, an expanded workforce to meet customer demand, and an IT infrastructure that laid the foundation for this next phase of growth and beyond.
The problem was they were still a relatively small business. They’d seen success at a manageable rate, their board was made up of a part time Chairman with a background in the sector, the owner/MD who started the business and a part time financial controller, all underpinned by a staff of 15.
The demand for their service was increasing, the rate of growth was daunting for a small business without the right infrastructure to handle the volume.
Co-Sourcing - The Solution
The business was introduced to us here at FACT3 through another client who had been through a similar journey and thought we might be able to help. To ensure we understood their challenges and priorities we conducted interviews with the Chairman, the MD and the FC as well as some short interviews with staff members and we developed a co-sourcing solution to meet their needs.
