How Outsourcing Has Changed the Business of Construction

Updated: May 11

Australia’s construction industry is known for two things: Firstly, it’s a highly competitive space and the tendering process can be cut-throat. Secondly, it’s highly regulated and compliance risk is a very real concern for construction organisations. In both cases, recruiting the services of an outsourcing services company is helping leading construction outfits get a leg-up on their competition..

Australia’s construction industry employs 1.05 million people, around nine per cent of the work force, and is the third largest employer in the country. What this means is that there are a lot of companies that compete for every major tender, and this puts downward pressure on the revenue that can be derived from the tendering process.

Engaging with an outsourcing services company can be a useful way for a construction business to reduce costs, allowing it to submit competitive tenders while not cutting its margins to the point that they’re unhealthily thin. With those healthier margins the construction company can focus on delivering to exceeding standards with the work done, and the quality of the project leads to long term reputational gains for the company.

The other major benefit that a leading outsourcing services company offers back to their construction clients is on the side of regulation and risk management. The perception is that because the outsourced support isn’t on-site that they’re not aware of the environment and context, but this isn’t true. The role of the outsourcing support is to carefully map a project in collaboration with the leadership prior to the project’s commencement, and in doing so, the outsourcing support can easily integrate with the back-end operation and management of the project.

Once this occurs, the leadership and management on-site and within the construction company can focus on strategy & execution, secure in the knowledge that a fully accountable outsourcing partner is managing the minutiae, and therefore saving them time. This means that they can spend more time focused on what’s going on on-site, engaging closely with clients, and ensuring that the maximum value is delivered to the client. The outsourcing provider’s team might be located overseas, but they’re always visible via regular reporting and clear documentation, and this actually provides the construction company’s leadership with greater levels of control.

Because detail and process-orientated experts are in such demand for construction companies, it’s actually difficult to find the right people for recruitment, despite the number of Australians that construction employ. Competition for these skill types, as critical as they are for construction businesses to meet their regulatory requirements and deliver projects to budget and on time, is fierce. In working with an outsourcing services company, a company can access these all-important skills without investing in costly recruitment projects.

ProSource, for example, focuses our teams on process and detail-orientated professionals that will be able to act as the backbone to all of your construction projects.

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