Why Outsource?
Proven winning Benefits
Stay focussed on your core business activities while we take care of your accounting, payroll and the rest....
Outsourcing –The practice of using outside firms to handle work normally performed within a company — is a familiar concept to many entrepreneurs. Small and medium sized businesses (SME’s) routinely outsource their payroll processing, accounting, distribution and many other important functions — often because they have no other choice. Many large companies turn to outsourcing their accounting, payroll etc. to cut costs. In response, entire industries have evolved to serve companies´-outsourcing needs.
But not many businesses thoroughly understand the benefits of outsourcing activities like accounting, payroll etc. It’s true that outsourcing can save money, but that’s not the only (or even the most important) reason to do it. To outsource or not to outsource is a critical business decision. The benefits have to be considered in relation to the company’s current financial position and business strategies. Wise outsourcing, can provide numerous long-term benefits:
Control capital costs: Cost cutting may not be the only reason to outsource, but it’s certainly a major factor. Outsourcing converts fixed costs into variable costs, releases capital for investment elsewhere in your business, and allows you to avoid large expenditures in the early stages of your business. Outsourcing can also make your firm more attractive to investors, since you’re able to pump more capital directly into revenue-producing activities.
Increase efficiency: Companies that do everything themselves have much higher research, development, marketing and distribution expenses, all of which must be passed on to customers. An outside provider’s cost structure and economy of scale can give your firm an important competitive advantage.
Reduce labor costs. Hiring and training staff for short-term or peripheral projects can be very expensive, and temporary employees don’t always live up to your expectations. Outsourcing lets you focus your human resources where you need them most.
Start new projects quickly. A good outsourcing firm has the resources to start a project right away. Handling the same project in house might involve taking weeks or months to hire the right people, train them and provide the support they need. And if a project requires major capital investments (such as building a series of distribution centers), the startup process can be even more difficult.
Focus on your core business. Every business has limited resources, and every manager has limited time and attention. Outsourcing can help your business to shift its focus from peripheral activities toward work that serves the customer, and it can help managers set their priorities more clearly.
Level the playing field. Most small firms simply can’t afford to match the in-house support services that larger companies maintain. Outsourcing can help small firms act “big” by giving them access to the same economies of scale, efficiency and expertise that large companies enjoy.
Reduce risk. Every business investment carries a certain amount of risk. Markets, competition, government regulations, financial conditions and technologies all change very quickly. Outsourcing providers assume and manage this risk for you, and they generally are much better at deciding how to avoid risk in their areas of expertise.
It would be absolutely true to cocnlude that every business organisation faces limitations. Capital is limited, so is the access to human resource, etc. Very often to get the best staff team could be costly and management may on the basis of opportunity cost decide to invest it in other areas of priority. Outsourcing is a strategy of leverging the limited resources with the best experts in the field. You get a professional team to handle, manage and advise your team at a lower cost without compromising the quality you require.
Outsourcing is a win win proposition that many organistions have found to be beneficial. Outsourcing is no longer an option it is an integral part of any business organisation today.
“OUTSOURCING HELPS YOU FOCUS ON YOUR CORE COMPETENCY: WHICH IS TO OPERATE AND MANAGE A PROFITABLE BUSINESS ORGANISATION AND TO ACHIEVE YOUR LONG AND SHORT TERM GOALS”