What is outsourcing and its benefits?
Outsourcing generally appears to be a word that everyone knows of, but doesn’t really understand. Global Infosys look to inform and educate everyone on what outsourcing is, and the positive effects it can have on a business. Let us give you a brief explanation of what outsourcing really is:
Outsourcing is what happens when you decide to ask a business or individual who is not directly employed by you to complete a core task, responsibility, process or function which is normally done by someone employed directly by you. It really is that simple.
Interestingly, when you talk about outsourcing in this context, it produces a strong reaction – often one of fear. But it’s worth taking a step back and thinking about outsourcing more generally. Without realising it many of us almost definitely outsource in our personal life, fairly often.
These are all examples of outsourcing that we’re sure many of you have partaken in, and haven’t even realised:
- Grabbing a takeaway rather than cooking an evening meal
- Using freelance resource to help complete a project
- Using a nanny, childminder or nursery to look after your children while you are at work
- Working with a virtual assistant
In an accountancy context, outsourcing is where you employ freelance or outsourced resources to typically help you complete compliance type tasks, e.g.
- Preparing year end accounts
- Personal and corporation tax returns
There doesn’t need to be any fear around outsourcing. Outsourcing simply helps a company achieve its goals while allowing them to expand their network and clientele.
The Benefits of Outsourcing
Outsourcing can have such a profound effect on a business but many are too fearful to look into committing to outsourcing, primarily because they don’t understand what it can do!
There are many benefits to outsourcing, we have selected a few of our favourites!
- Your outsourced provider can typically process your compliance work cheaper than you can. At Global Infosys we find that we can often help our clients increase their profit margins by up to 50%.
- It can free up time so that you are available to do the higher value stuff which your managers and staff prefer to do. Leaving you to manage the bigger picture.
- Given how hard it is currently to recruit accountants, tax and bookkeeping staff, using an outsourced resource could mean you never have to recruit a qualified or part-qualified member of staff again. (Unless of course you want to!)
The fear of outsourcing can simply be eliminated just by understanding how it can benefit your company. Keep up to date with our blog to find out more benefits on outsourcing!
If you have any queries regarding outsourcing, please contact us on 0208 424 8916 or visit our site www.giinfosys.com to download our free E-book.