OUTSOURCING & ITS IMPORTANCE |
| What is Outsourcing? |
 Outsourcing is a process of hiring another individual, company or firm, either domestically or internationally, to handle the business activities and other works. It has become a common business practice that allows small and medium size or big enterprises to gain services or skills that are usually hard to develop, because of either financial, manpower or time restrictions.
It also allows your business to focus on core competencies and more importantly reduces cost and improve efficiency.
What can be Outsourced?
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- Design and implementation of accounting system
- Day to day bookkeeping & accounting
- Preparation of budgets
- Payroll processing services
- Invoice processing services
- Preparing account receivable reports and its reconciliation
- Accounts payable services and its reconciliation
- Preparing aging reports and summaries
- Bank account reconciliation
- Preparing income statement and sales report
- Cash flow statements
- Inventory / stock management and reports
- Assets / equipments ledger maintenance
- Preparation of periodic financial statements
- Employee benefits and compensation strategies
- Internal Audits
- Preparation of audit work papers for year-end audit
- Preparation of monthly MIS reports
- Virtual CFO
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| Importance of Outsourcing |
Importance of Outsourcing |
In-house bookkeeping |
Outsourcing |
Cost Advantages |
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Increase efficiency and accuracy |
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Focus on core areas |
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Save on infrastructure & technology |
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Access to skilled resources |
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Time Zone advantage (24*7) |
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| Cost advantages |
| The most obvious and visible benefit relates to the cost savings that outsourcing brings about.
You can get your job done at a lower cost and at better quality as well. Due to the difference in wage, the same kind of work that is done over there can be done in India at a fraction of the cost. Plus, the quality of the services provided is high thereby ensuring that low-cost does not mean low-quality. |
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| Increased efficiency and accuracy |
| When you outsource, your business needs an outsourcing partner, they bring years of experience in business practices and expertise in delivering complex outsourcing projects. Thus, they can do the job better with their knowledge and understanding. This leads to an increase in productivity and efficiency in the process thereby contributing to the bottom-line of your company. |
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| Focus on core areas |
| Outsourcing your business processes would free your energies and enable you to focus on building your brand, invest in research and development and move on to providing higher value added services. |
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| Save on infrastructure and technology |
| Outsourcing eliminates the need for investment in infrastructure as the outsourcing partner takes the responsibility of the business processes and hence develops infrastructure for the same. |
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| Access to skilled Resources |
| You no longer need to invest in recruiting and training expensive resources and manpower for your business. Your outsourcing partner does the work at timely manner with most efficient way with the help of the skilled resources on the same filed. |
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| Time zone advantage |
| Apart from the cost advantage, the other important benefit has to do with the time zone differential between your country and the location you are outsourcing to. Get your job done while you are closed for the day and wake up to your service being delivered the next morning. This unique advantage gives you the benefit of round-the-clock business operations. |
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| Faster and better Services |
| Make your service offerings better with high quality deliverables and decrease the lead time it takes for your product to reach the marketplace. Thus you would be faster in getting your ideas converted into products and better at delivering the value-added proposition. |