The ins and outs of outsourcing – It’s as easy as 1,2,3
I was thinking the other day that many people have a misconception when it comes to outsourcing. Sometimes it gets a bad reputation for moving jobs or work out of the local community.
It is true that many outsourcing services are performed offshore. This is due to either the difficulty in finding the service or skills locally and/or the difficulty in finding an affordable or flexible solution. Many of these offshored tasks are repetitive and needed only on a sporadic or on-demand basis. Hiring a full time employee to handle part time repetitive or time consuming tasks many times does not make good business sense.
For business owners, reducing cost is always a component, however the advantage of outsourcing is much more than saving money. Outsourcing allows businesses to focus on core business strategies while increasing back office efficiency and quality while reducing overall business risk and cost.
At Direct Sourcing Solutions, we offer Business Process Outsourcing (BPO) as a competitive advantage available to many types and sizes of businesses. Startups, small businesses, medium size companies and Multi-national corporations can all benefit by outsourcing parts of their business processes.
Startups and small businesses are generally consumed with the delivery of goods or services that are core business competencies. These entities are usually too small to have dedicated staff tasked with solely managing all their non-core business activities. As a result, critical back office business functions are done whenever time allows.
Bookkeeping and Accounting functions are some of the most tedious and time intensive but critical business needs. Accounting services are natural candidates for Business Process Outsourcing (BPO).
Is your business current with…
- Accounts receivable?
- Accounts payable?
- Monthly reconciliation?
Medium size companies may or may not have dedicated staff to handle all accounting functions. Regardless of staffing levels, in addition to basic accounting functions there are two time intensive non-core business process components that are natural candidates for outsourcing.
Payroll and HR services are areas that have regulatory components with stiff legal and monetary penalties for non-compliance. Many companies have found outsourcing the compliance risk to be of equal if not greater enterprise value than the cost and/or time savings. What is your appetite for avoidable business risk?
Lead Generation is the lifeblood of the sales process. Cutting edge Lead Generation incorporates business intelligence such as Industry and Market Mapping. Business intelligence is not only critical in increasing the quality of the leads generated but can also help drive product and service innovation. Would your sales process improve with targeted Lead Generation?
Multi-national corporations usually will have entire departments to handle accounting, payroll, HR and sales. Even so, outsourcing specific tasks or functions within these departments can increase process efficiency and delivery quality while also reducing many types of business risk and overhead cost.
The Ins and Outs of Outsourcing: Cost reduction is a consideration however; the main advantage of outsourcing is the ability to have access to the appropriate highly skilled personnel without assuming the associated employment risks. Direct Sourcing Solutions allows businesses to cost effectively expand or contract business operations based on market conditions and/or business opportunities. Outsourcing done beautifully – In with efficiency and quality: Out with risk and cost.