Niyamath Parveez

Any firm that can announce healthy business figures in the current climate is definitely doing something right but these results have to be taken with a pinch of salt. No firm is going to come out and tell the truth about their status if they can fudge the situation a little but for those firms who are required to lay their figures on the line for public perusal, it gets a bit harder to manipulate the findings. Not saying it is impossible but firms that can put actual figures to the positive message they are sending out to the general public should be believed a bit more than those who just paint moonbeams and spout empty platitudes.

The construction industry is in a state of flux at the moment and many are unsure about what will happen to them. The companies who have secured long term contracts or are able to provide public body work are likely to get through the recession okay but for all other firms, there are bleak times ahead unless serious action is undertaken. One of the major building and engineering firms in the UK at the moment are Carillion and they have recently announced operating profits that stand in stark contrast compared to the returns and results of many firms in the industry. This is exemplified by the fact that Carillion managed to deliver a high level of growth for the opening half of 2009.

This success is shown by the bottom line figures of lowering its borrowing by £150 million and some of this can be aligned to the fact that the firm raked in just under £90 million from the sales and outsourcing of their IT department. Carillion are not the only company in the world to find that taking advantage of the outsourcing opportunities afforded from outsourcing can make a massive difference to the labor costs of a firm without having a negative impact on the quality of work. The fact that the quality of work can remain high is the deciding factor for many firms and Carillion have shown that it can bring the correct results to any firm in these difficult times.

The firm has also benefited from outsourcing in another way, one which has helped drive business and income to the firm. It is apparent that outsourcing is important for many firms and companies, organizations or local government bodies can outsource their facilities management requirements. This frees the firm or organization up from the time and hassles of managing these requirements and will allow them to benefit from the experience and knowledge that companies like Carillion will have developed in these areas. This provides a win:win situation for both firms which is clearly of great benefit to all concerned.

As so many firms will now be examining their internal status and job books in order to find more efficient uses of their money, the market for this type of relationship may become squeezed, which will make it harder to find the correct deal. This will be tough on those firms who have not sorted their future out yet but for the early movers like Carillion who embraced outsourcing at an early stage, the likelihood of success is much higher than that experienced by their peers.