CAPITA - Another casualty in the making?

CAPITA – Another casualty in the making?

First impressions, and lessons to learn now.

With the news of Capita’s financial woes and £700m fundraising effort, are we allowed to say the outsourcing market is in distress? Outsourcing companies must take very careful stock of their commercial models and occasionally enthusiastic sales strategies.

Equally, organisations that engage these companies should apply clear criteria when (re)considering what to outsource, and to whom.

Our advice – only outsource if..

1: There is a competitive market for the service – in other words if you can’t see how your outsource provider is making a profit, then buyer beware.

2: Performance can be easily and regularly measured.

3: It’s not integral to your organisation’s reputation, or strategy.

4: You’ve done your financial due diligence. It’s more important than ever to look closely at your outsource provider’s financial performance. Check your suppliers’ accounts, especially their balance sheet. How much fixed assets and stock do they hold and what is their liquidatory risk?

And finally, contact us for more advice or an informal discussion about how to structure your estate maintenance and reduce your costs.

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