Opportunity for Outsourcing Entrepreneurs and Investors

David White david@drgoutsourcing.com
www.drgoutsourcing.com

Logic in outsourcing
Throughout the world there has been mass movement towards the logic in outsourcing non-core business activities. Setup company owners find outsourcing a relief as it brings skills into their business environment, and frees up time for them to express their ongoing intention and purpose to clients. Larger organisations enjoy the "better value/lower cost" alternative as offered by outsourcing suppliers, and benefit through managed risk and sharing responsibility. There is logic in outsourcing sure, but the truth is that 25% of all outsourcing relationships fail. And when an outsourcing relationship fails the results can cause havoc in a client’s business.

Vision
DRG Outsourcing's vision is to be Southern Africa’s preferred supplier of human resource products and services, building confidence through long-term relationships with both employers and employees.

Introducing DRG Outsourcing
DRG Outsourcing is a one source "human resource outsourcing company", providing services within each of the functions within a company’s human resource environment. DRG Outsourcing assumes the employer-employee relationship in its contract employee management program. And supplies outsource payroll services, employee tax management, HR consulting and training, employee placements, and employee benefit products to clients where it does not take on the employment relationship.

DRG Outsourcing’s target market for contract employee management is larger organisations (corporate), and its outsourced human resource activity products to small and medium size companies.

Entrepreneurial Opportunity
DRG Outsourcing believes that an opportunity exist for its brand to become a leading player in the outsource human resource industry through its franchised business structure. There is no industry more dynamic and complex than the management of people, and hence the skill requirement barrier for new outsourcing industry entrants. DRG Outsourcing has created administrative products that fulfil client and statutory requirements, and has packaged them as a convenient alternative to a company’s traditional internal processing procedures. Each sales and operation activity is routine, hence requiring lower personal skill from each team-member within a DRG Outsourcing Franchise. Income flows are recurring based with an emphasis on lifestyle and long-term value of customers.

The South African Predicament
"South African human resource management has leap-fogged into a pool of uncertainty and doubt since the introduction of eight new Labour Acts and a new Income Tax Act. Although wanting to comply with statutory legislation, maintain good work ethics and company culture, many employers have become confused by many of their new employment obligations and requirements. Recent changes have quite literally brought South African employment parameters in line with first world economies at a speed of "zero to one hundred" in 6 short years. Employers without formal human resource departments are now faced with the task of interpreting current legislation and systematically having to implement the recommended structures and controls. It’s precisely because of this new paradigm that so many companies are utilising specialist outsourcing companies like DRG Outsourcing" KwaZulu Natal Top Business Portfolio 2002

The DRG Outsourcing Business Model
The DRG Outsourcing business model is unique in many ways, and provides the following structural benefits for new outsourcing industry entrants and for existing human resource supplier companies.

• Duplicatable Franchise Business Structure (Marketing and Operational Processes)
• Administrative products "Canned"
  • Payroll Processing (1-150 employees)
  • Contract Employee Management (Typical co-employment relationship)
  • HR Audits, Training, Consulting and Software
  • Employee Tax Management, and (Tax Returns, directives...)
  • Employee Benefits (Medical Aid, employee risk management...)
• Multi-level marketing principals (Lifestyle and recurring income)
• Pisces Marketing (Software program based on branding and referrals)
• Professional Supplier Relationships (Employee benefits, hr software ...)
• Human resource outsourcing training and leadership

Marketing
DRG Outsourcing has developed a unique software program called "Pisces". Pisces allows marketers to communicate directly with clients, and to record all current activities within the websites database. The program creates a framework for marketers to gain and service new and existing clients, and to create a platform from where further products can be introduced in confidence. Marketers follow a deal progression process where relationships are established, current client situations are analyzed, value-adding opportunities are considered, and formal proposals are presented. All product presentations, product proposals, brochures, adverts… are standard, and marketers draw off information as required. From a strategic perspective, Pisces focuses on developing relationships with clients through "branding and referrals", and "duplicatable" delivery processes.

DRG Outsourcing has developed relationships with vertical supplier groups for the purpose of direct product distribution. The supplier groups include: Effective People Solutions, CWA, Workinfo.com, Lifesense, Business Partners, and the Durban Chamber of Commerce (20 000 networked clients).

Operations
DRG Outsourcing has been developed in a Franchise business structure. The framework has two distinct advantages. From a marketing perspective the Franchise model provides for broad (and quick) distribution, and generates local preference in supplier choice "branding and referrals". In the operations environment the processes are “canned”, and each product sold follows a similar path from marketing to sales to operations and back to the customer.

The Franchise model helps to provide a structured environment, and forms controls and stability. DRG Outsourcing Franchisees begin as Marketing Cells. They market DRG Outsourcing products and services, and use the operational infrastructure within DRG Outsourcing’s Head Office to provide processing, structure and leadership.

Marketers are given full “HRO” training, and receive a complete marketing and sales program. After one year trading as a Marketing Cell and meeting the necessary growth and skill requirements, Marketers may convert their Marketing Cell into a semi-independent DRG Outsourcing Franchise. Income streams to Marketers and Franchises are annuity based (recurring), and value is derived from long-term relationships with clients.

DRG Outsourcing’s company culture of consistency, integrity, and loyalty has created the platform and opportunity for marketers to prescribe DRG Outsourcing products and services in confidence. Three years commitment from marketers should result in well-established business generating secure long-term "recurring" income.

Conclusion
DRG Outsourcing would like to speak with companies interested in understanding more of the DRG Outsourcing human resource outsourcing franchise business model.

Please visit www.drgoutsourcing.com or contact David White (CEO) at david@drgoutsourcing.com

"Your partner to reliable and professional human resource solutions"

Click here to obtain a copy of International Investor