Outsourcing has become a strategic tool that offers substantial saving, efficiency, and convenience to firms. But without proper understanding of the industry, you might not be able to reap the benefits of outsourcing.
Not all service providers can deliver the level of service that your company needs to achieve added business value. Before you jump on the bandwagon, here are five questions you should take into consideration:
- Does your outsourcing service provider match your business needs?
It is important for your service provider to match your goals as they are basically your outsourcing partner. They should basically drive performance and help you achieve your objectives more efficiently.
- Will it deliver significant cost savings?
Companies choose to outsource mainly for cost effectiveness. When you outsource your task rather than having in-house employees do it, you save on labour costs. Moreover, your access to quality resources help you improve business outcomes.
- Will it improve performance?
While cost may be the primary impetus for outsourcing, some companies are concentrating on improving their business outcomes. With access to global skills and competence, they can deliver work efficiently.
- Do you have the resources to manage your offshore team?
Outsourcing only frees managers to focus more on strategic, revenue-generating activities, but they still have to manage their outsourcing partner. Engagement between you and your offshore team is important in order to oversee their operations.
- What are you going to outsource?
Finally, your company should decide on which tasks are you going to outsource. Most companies only outsource their non-core business process. Some of the functions you should outsource include marketing, administrative support, human resources, and accounting duties
The Outsourced Accountant supports Australian and New Zealand accounting firms by helping them understand and implement outsourcing solutions to help them become more proactive and truly add value to their clients. If you want to know more about outsourcing, call us at 1300 729 150, and download our e-book.