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Cost reduction: Difference between revisions
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*{{wasteprov|Downgrading}}: Reallocate work from more expensive units to cheaper ones. So, the negotiation process moves from [[legal]] to the [[documentation unit]], to [[operations]]. | *{{wasteprov|Downgrading}}: Reallocate work from more expensive units to cheaper ones. So, the negotiation process moves from [[legal]] to the [[documentation unit]], to [[operations]]. | ||
*{{wasteprov|Relocation}}: move work to a lower cost jurisdiction where a like-for-like personnel are cheaper: moving document management from London to Birmingham, Belfast, Madrid, Krakow, Cape Town or Bangalore. | *{{wasteprov|Relocation}}: move work to a lower cost jurisdiction where a like-for-like personnel are cheaper: moving document management from London to Birmingham, Belfast, Madrid, Krakow, Cape Town or Bangalore. | ||
*{{wasteprov|Outsourcing}}: Contract work out to third party service providers who may manage their own resources in | *{{wasteprov|Outsourcing}}: Contract work out to third party service providers who may manage their own resources in lower cost jurisdictions, but in any case can be switched on and off easily | ||
==={{wasteprov|Real estate}}=== | ==={{wasteprov|Real estate}}=== | ||
A square foot of office space in Bangalore is 75% | A square foot of office space in Bangalore is 75% cheaper than one in London. So - if you have to have a personnel-heavy process then , {{wasteprov|all other things being equal}}, it makes sense to move it. Right? | ||
*{{wasteprov|Downgrading}} won’t affect your real estate spend | *{{wasteprov|Downgrading}} won’t affect your real estate spend | ||
*{{wasteprov|Relocation}} will (but | *{{wasteprov|Relocation}} will (but don’t forget the one-off costs of having to acquire new premises) | ||
*{{wasteprov|Outsourcing}} will (but you will pay for this through your service fee; but the | *{{wasteprov|Outsourcing}} will (but you will pay for this through your service fee; but the outsourcer is incentivised to locate itself in the cheapest possible place). | ||
==={{wasteprov|Systems}}=== | ==={{wasteprov|Systems}}=== | ||
{{wasteprov|Systems}} permitting communication and collaboration between the {{wasteprov|Personnel}} involved in a negotiation is a fixed {{wasteprov|cost}} (in that is not so much a function of ''{{wasteprov|time}}''). But not the costs here increase where you are {{wasteprov|relocating}} or {{wasteprov|outsourcing}} parts of the workflow. | {{wasteprov|Systems}} permitting communication and collaboration between the {{wasteprov|Personnel}} involved in a negotiation is a fixed {{wasteprov|cost}} (in that is not so much a function of ''{{wasteprov|time}}''). But not the costs here increase where you are {{wasteprov|relocating}} or {{wasteprov|outsourcing}} parts of the workflow. | ||
==={{wasteprov|Consumables}}=== | ==={{wasteprov|Consumables}}=== | ||
Ink, paper, pens, yellow stickies. In the scheme of things de | Ink, paper, pens, yellow stickies. In the scheme of things ''de minimis'', but you’d nonetheless be horrified at the total cost. Does technology obviate some of these issues, or amplify them? It's the [[technology paradox]]. | ||
{{sa}} | {{sa}} | ||
*The [[seven wastes of negotiation]] | *The [[seven wastes of negotiation]] | ||
{{ref}} | {{ref}} | ||