Business in South Africa is an ever-changing environment. Large corporations and small to medium enterprises have to constantly evolve in order to stay afloat in these tough economic times. Cheaper imports, weaker Rand and inflation can be detrimental to any business including large established brands. So how does one make sure that their businesses grow and stand tall in 2014?

Marketing manager for the Orion Group Michael Beggs may have the answer. According to Beggs, there are only two ways to maximise profitability in business. “The first is to grow revenue and the second is to control expenditure and reduce costs. At the Orion Group, we have been able to drastically reduce costs which in-turn allowed us to grow profitability,” he said. In 2013, the Orion Group, decided to cut costs by ‘cutting out the middleman’. What that meant is that the company, instead of outsourcing key functions such as IT, maintenance and PR and communications, had brought these departments in-house thus reducing costs. Orion Group is one of the few large corporations that have kept key functions in-house without the need to outsource.

Michael added that due to savings from the aforementioned initiatives, Orion Group have been able to save millions. “One of the main benefits of introducing in-house departments within an organisation is that tasks and operations are dealt with immediately thus cutting time and money spent on call outs, quotations etc. By choosing to in-source, we have reduced costs, increased efficiency and refocus critical resources in order to remain competitive.  My advice is that corporations need to take a long and hard look at in-sourcing key functions and initiatives. It is the only way to tackle this global economic crisis and save our businesses,” he said. Orion Group kicked off 2014 by launching their official PR, Media and Communications Department. This follows the rapid growth of their numerous divisions prompting the business heavyweight to incorporate the communications function in-house as opposed to outsourcing.

Reasons why companies should consider in-sourcing:
• Reduce and control operating costs.
• Improve company focus.
• Free internal resources for other purposes.
• Make capital funds available.
• Bring in a cash infusion.
• Performance improvement