The booming world trend observed and confirmed by the leading accounting firms consists for 7 companies out of 10 to turn to outsourcing solutions in areas such as IT, security, warehousing, accounting, inventory management, payroll, HR, logistics, management and advisory team in order to reduce fixed costs associated with non-critical functions, gain more agility and competitivity to face changes and increase their profit margin, by using concepts such as “As-a-service” contract at the expense of the traditional source of technology, infrastructure and internal workforce.
Recent Market researches confirm that the trend observed the past recent years on steadily increase of business outsourcing will continue. As large and mid-sized businesses try to become more efficient and streamlined for improving corporate profit, the demand for outsourced Payroll, Bookkeeping and related services will continue to grow as online systems provide more convenient and potentially lower-cost services than maintaining fixed overhead with costly in-house workforce and related non-core functions.
The advantages once were only enjoyed by mid-sized and large companies, are available to small businesses, thanks to the aggressive development of advanced technologies with cloud integrated business software and their multiple add-ons. Without scarifying a substantial part of their financial resources to in-house labor costs, sick leave and staff replacement, desktop software purchase and updates, IT maintenance and repairs, security breaches and potential internal frauds, small businesses are offered real-time access to their books and financial reports, safe data storage and secured backup, unlimited evolving needs, simple user interfaces, frequent updates at a fraction of the fixed costs they were facing. Further, these solutions allow advanced data manipulation and use of smart tools that do not need to be expensive to be effective and that are just as beneficial, no matter the size of the company, its strategy and the economic environment.
Outsourced services pros and cons:
Redirecting financial resources to core business functions
Solving capacity issues
Access to specialized human capital
Flexibility to manage organizations change
Focussing on the company’s growth and vision Improving business results
Objective input and recommendation
Reducing potential books fraud
Ensuring clear and in-depth onboarding (clear expectations)
Need to establish a communication schedule
Less control (requires trust in the outsourced partnership)