As more companies are looking to grow internationally, more and more functions are now being outsourced. Still, some firms hesitate to outsource their business process because they have negative perceptions about it.
Here are five myths about outsourcing and the truth about it:
Losing control of your business
Having another company manage and control your business can be risky because you know that they might not use the same standards as you do. But contrary to what others may expect, outsourcing actually gives you more control; it just shifts the process of information.
Your company can have a set of guidelines and communicate your expectations with your providers in order to meet your needs.
It only aims to cut costs
Cost may be the most important factor in deciding to outsource, but it is not the only reason that the company considers. Most of the time, the company is going through an expansion and needs competitive staff who will add value to their business. Outsourcing strategically provides all of these benefits.
Lack of knowledge of offshore workers
Outsourcing lets you gain access to well-rounded individuals who have significant experience in the field. Their knowledge of your business will depend on further training.
The company can hold their own training but some providers give their own to the outsourced workers. This training not only includes their tasks but also the culture of the company they are working for. This ensures that both parties are using the same strategy and working towards the same goal.
It is only limited to big businesses
Outsourcing can actually help small firms the same way it helps big businesses. In fact, small firms will reap more value in outsourcing because it will aid in its efficiency and effectiveness.
The provider gives a consistent economy of scale and cost structure which will benefit your company. It is flexible in providing assistance to any business size.
Loss of privacy of the company
Some businesses are protective of their financial information and are unwilling to share confidential matters outside the company. But creating the right relationship with your outsourcing provider eases this concern.
In fact, the security of your data should be one of the top priorities of your outsourcing partner because it is now their responsibility.
The outsourcing wave continues to thrive and is not going away any time soon. Although there are real risks involved, the numerous benefits it offers still outweigh these. You just have to find the right outsourcing provider for your company in order to achieve these returns.
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 896 522 and download our e-book.