Outsourcing: lessons from the sourcing collective

When it comes to offshoring, the potential rewards are significant but so are the risks

When Derek Timms moved to Sri Lanka in 2020 to run an architecture studio, he didn’t just relocate, he spotted an opportunity. With 25 years of experience in London’s architectural sector and a strong sense of how the UK construction system works, Derek founded The Sourcing Collective: a hybrid architectural support studio that blends British design leadership with offshore delivery talent.

Headquartered in the UK and staffed by a project team in Sri Lanka, The Sourcing Collective supports architects, interior designers, and modular builders with drafting, modelling, and production documentation. Its model allows UK architects to focus on concept and client work, while technical tasks are handled by a skilled offshore team efficiently and affordably.

‘Outsourcing gets a bad rep,’ Derek admits. ‘But when done well, it’s not about exploiting cheap labour, it’s about creating value for both sides.’

Why Sri Lanka?

Derek’s choice of location wasn’t random. During the pandemic, he spent two and a half years living and working in Sri Lanka, establishing local connections and starting the British-owned company, an overseas company in legal terms. Derek says Sri Lanka has a deep talent pool of technically gifted architects, many of whom studied on courses accredited by British institutions, giving him the ideal workforce.

But the key, Derek notes, is understanding the local market. ‘The people we work with are smart, well-trained professionals. But what they sometimes lack is exposure to the realities of UK planning, compliance, and workflow. That’s where we add value.’

Being on the ground helped Derek recruit trusted team members, navigate bureaucracy, and establish a cultural bridge between UK clients and Sri Lankan delivery teams. Today, the company enjoys a strong reputation in Sri Lanka, seen as a British-led business that opens international doors for local staff.

The pros of outsourcing

For The Sourcing Collective, the upside of outsourcing is clear:

• Lower costs: labour and software costs in Sri Lanka are significantly lower than in the UK. ‘Even Autodesk Construction Cloud licenses are cheaper there,’ Derek says.
• Productivity gains: with a 4.5-hour time difference, UK teams can brief projects at close of business and wake up to near-complete drafts.
• Skilled talent pool: many staff are highly educated and eager to grow. ‘One of our guys said every day felt like a day at university. He was doing self-initiated training in his own time.’
• Staff retention: loyalty is high. ‘In Sri Lanka, people often stay with companies for decades. That’s a contrast to some outsourcing hotspots where staff jump frequently.’

The cons and how to manage them

But the model comes with hard realities.

‘At times, we’ve had 70% inflation, daily power cuts, and archaic banking rules. At one point we needed blue ink signatures for every transaction,’ Derek laughs. ‘It’s not for the faint-hearted.’

Trustworthy local partners are essential. Derek recommends securing a good lawyer, accountant, and company secretary. Without them, navigating local tax and regulatory systems can be overwhelming, and risky.

There’s also the challenge of long-term financial planning. ‘Foreign currency controls meant we had to make sure we didn’t leave money in Sri Lanka. Things can change overnight.’

Tips for SMEs considering outsourcing

If you’re considering building an offshore team, Derek offers four key tips:

1. Spend time on the ground: ‘you have to understand the culture. There are no shortcuts.’
2. Communication: ensure there are no language barriers and there is a primary, trusted point of contact.
3. Build a trusted team of professional: create a small network of local professionals—legal, financial, and HR—to keep your business compliant and protected.
4. Be clear about value: don’t just save money, invest in your people. Derek’s team receives training and works to UK standards, fostering pride and accountability.

‘Ultimately, it’s about building a team, not a supply chain,’ he says.

For SMEs considering outsourcing, The Sourcing Collective is a useful case study in both potential and pragmatism. The rewards are real, but so are the risks. ‘You just have to go in with your eyes open,’ says Derek. ‘Everything can be sorted, it just takes a bit of time.’

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