Space (The Design Practice) Limited
Case Study
Sector: Creative services and media
Employees: 16
Location: London
The big idea :- outsourcing a key in-house competency.
What they do
Space specialises in the design of interiors for cruise ships, one aspect of which is to produce three-dimensional computer-aided designs and visualisations, enabling clients to 'walk through' the concept on screen.
The challenge
…was to maintain the quality and time-to-screen delivery of these 3-D concepts which account for only a small proportion of the company's workload, yet serve as an exciting feature for clients. Historically, this 3-D work was carried out by specially trained members of staff. However, there was not enough work to employ them on 3-D full-time and so they would be seconded to other work. This compromised their availability when 3-D work was required.
The solution
'Talking to Business Link for London helped clarify our thinking,' says Managing Director, Mark Hilferty. 'We decided that outsourcing the 3-D work would enable us to concentrate on what we're best at. We began by drawing up a short-list of suppliers and then made our choice on the basis of technical capability, service levels and price - though price, of course was not our main consideration. What matters most in our business - to our customers - is high quality work and fast turnaround.'
'The decision to approach Business Link was because, previously, they had been so supportive and helpful in our bid to win an R&D Grant (which we won) and on various aspects of our business in general from sales and marketing to staff contracts,' Mark continued, ' Most of this advice was free and so it was a very attractive proposition to get them involved. I have developed some very strong business relationships with the BL London consultants and value their input.'
Issues arising
Copyright and who owns it is a notoriously grey area in the design world, so the contract between Space and its supplier clearly identifies where the copyright sits - with Space!
Key to this partnership was an undertanding that the supplier would invest in the technologies, people and training needed to maintain a cutting-edge service. Space would then enjoy all the benefits but without having to make the considerable investments itself.
It did take time for suitable briefing and project management arrangements to fall into place and lessons were learned at both companies but, together, they now form a very effective team.
Explains Mark,'Like all things nothing ever runs to programme and more often than not it is the unexpected or the accidental find that solves the problem. At the end of the day it turned out that an unsolicited introduction by one of our own staff solved the problem, its happens like that sometimes.'
The outcome
The cost savings made cannot yet be quantified but the company can immediately point to the advantages of buying in a service at a predictable fixed price. Mark says: 'Now we have none of the headaches of providing the service. We simply apply a margin to their work and get on with managing our business.'
In addition, clients have noticed the improvement in the quality of the 3-D designs and as a result some are using the work for other purposes, including promotional videos and interactive exhibitions.
As a result, Space is actively developing additional 3-D business opportunities in the marketing and exhibition fields and is sufficiently confident to take its overall design package to other industries and sectors such as office and corporate interiors. As always, the original design ideas are created in-house with the external design house turning those ideas into creative 3-D experiences.
As Mark points out: 'Outsourcing has reinvigorated our approach to growing the business and we intend to use it to enter additional market sectors in the future.'
What could you do?
Have you got a business process that would benefit from being outsourced to a company that maintains a leading-edge and cost-efficient approach to managing it? If so, why not talk to your local Business Link for advice on how to go about it.
Space (The Design Practice) Limited website
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