While the primary reason for outsourcing is cutting costs, most companies have realized that strategic outsourcing offers more advantages. Companies who use outsourcing more innovatively than their competitors have learned to create sustainable value that goes beyond financial sense.
Ed Thomas, an analyst for Ovum research, explains, “Cost reductions are the table stakes, and companies want to know what else their outsourcers can do to make their processes and technology run more efficiently.”^
With a competent service provider and good management control, companies of all sizes can obtain the advantages of outsourcing. If you’re still not convinced with the benefits of outsourcing that we have previously shared, here are five more that you should know:
- Risk Management
Companies are exposed to risks resulting from changes in the market. Outsourcing reduces these uncertainties as your outsourcing provider will be sharing the costs. It becomes a joint responsibility of the company and the vendor.
- Increase turnaround time
Having specialized systems provide more efficiency, allowing a quicker turnaround time, but still achieving high quality. Also, you’ll get access to highly skilled workers who specialized on tasks that are not your core competencies.
- More efficiency for in-house employees
Outsourcing gives operational efficiency for in-house employees as the outsourced providers share the tasks. Also, they invest in high technology for your non-core business process.
- Flexible staffing
Outsourcing allows you to scale up or down without worrying about the costs, especially whenever there are seasonal or cyclical demands. This means your business can run 24/7 even during off-season or holidays.
- Competitive advantage
Outsourcing gives you access to the expertise of professionals, giving you a competitive edge. Outsourcing service providers offer cost-effective services at the same or even higher quality. It can help you outdo competitors who have not yet realized these advantages.
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.