Is outsourcing the right decision for my business?
Opinions expressed by Entrepreneur the contributors are theirs.
Time is the most important thing for a Company. It’s the one resource we can never get back, and it’s often what dictates whether we succeed or fail. That is why Efficiency is vital when it comes to business growth.
Outsourcing has long been associated with cost savings, which remains one of the main reasons companies choose to outsource. But in today’s business environment, there are other compelling reasons to outsource.
Here are some of the most common benefits of outsourcing business functions:
Focus on core skills
Let’s dial the big one I mentioned earlier – time. I often see the embroiled leaders in non-essential activities, in particular accounting. This takes them away from their primary goal – business growth – and puts them at a disadvantage when competing with organizations that have outsourced these functions.
Outsourcing accounting and financial operations are a gift for overworked executives. This allows them to focus on what they do well and leave the rest to the experts – that’s how it should be.
Inefficient accounting and financial operations can strain a company’s resources. It’s more common than you might think — a company has a dedicated finance team, but the leadership manage the team more than finance.
By subcontracting to a specialized company, you can take advantage of their economies of scale and eliminate inefficiencies in your business. Outsourced services don’t require sick days, vacations, or even onboarding and training – you can use them when you need them, almost always for less.
Free up your capital
An in-house team of any type is usually a fixed cost – you would have difficulty moving those resources to another area of the business if circumstances changed. On the other hand, an outsourced service is a variable cost – you can increase or decrease your use of the service as needed without any long-term commitment.
This flexibility gives organizations much-needed leeway to invest in other business areas. It also allows them to be agile in the face of change, which is more important than ever in today’s business environment.
Real-time data and analytics
To see the Technology The offering of these specialized financial service providers is a real eye-opener and helps you understand how much they can help your business. To have access to real-time accurate data and analysis is essential.
However, internal teams often struggle with data and analytics for several reasons: they’re too mired in the day-to-day to see the big picture, or the organization can’t justify the cost of the necessary tools and technology.
But cutting-edge, real-time data and analytics are usually built into the service when you outsource your accounting and financial operations. This gives you visibility into your business like never before and helps you make better decisions about where to invest your time and resources.
Imagine for a moment that your talent pool spans the globe. This is the reality of specialist service providers. There are expert teams in every time zone, meaning they can offer 24/7 coverage and support. They focus on a specific area, attracting and retaining top talent.
This is a huge advantage for organizations that outsource their accounting and financial operations. You have access to world-class talent that can help take your business to the next level without paying a premium.
Are there any disadvantages?
Many organizations have doubts about outsourcing, but in my opinion they are largely unfounded, especially when looking at the results. Let’s look at the two most common objections to outsourcing:
English is the international language of business, so it’s rare these days that outsourced talent can’t communicate clearly with Western companies. But even if there is a language barrier with the actual human handling of your finances, the numbers are most important, and there will likely be an English-speaking manager overseeing the work to ensure accuracy and understanding.
Different time zones
The time zone difference is often cited as a reason not to outsource, but in my opinion, it’s a plus. Specialist service providers have teams in every time zone, meaning they can offer 24/7 coverage and support that would be very difficult (and expensive) to replicate with an in-house team. And nothing like waking up in the morning and seeing the work done while sleeping!
Outsourcing accounting and financial services has been a boon for many companies I have worked with. My best advice is to get referrals within your network and phone potential outsourcing services. Talk to them and look for chemistry. Do they understand your team’s culture and values? Do they understand your business goals and objectives? If they do, that’s your winner.
If you can find a good fit, I think you’ll be amazed at how much these specialized service providers can help your business grow.