Benefits of Outsourcing
Outsourcing is using outside individuals or firms to handle work normally performed in the company. This practice of hiring contractors can apply to just about any type of work. However, small businesses don't take full advantage of multiple outsourcing opportunities like larger companies do. Outsourcing should be regarded as a strategy in business planning. The one thing small businesses tend to outsource without hesitation is payroll. They know they are not qualified to do that job and therefore see the wisdom and benefits of outsourcing it. That's also why company outsource managers look outside their organizations for expertise.
In addition to that:
- They are cutting costs and freeing up finances to be used elsewhere.
- They are increasing efficiency by freeing the owner and key employees from jobs that are outside their scope of expertise. The staff can then focus on core-business functions.
- They are not taking time to train existing or new employees because they'll get an independent contractor who is capable of starting right away and is equipped with the knowledge.
Accounting/Bookkeeping and HR functions are outsourced as often as IT, research, web design/development and more.
Why Outsource Accounting and Bookkeeping?
Placing your accounting and bookkeeping in the hands of professionals is an effective management decision. The responsibilities involved in maintaining your company's bookkeeping functions grow as your business grows. You want to ensure that your monthly, quarterly, and annual bookkeeping are accurate and timely.
Why Outsource Human Resources?
HR functions must be handled correctly as close to 100 percent of the time as possible. Slip-ups can cause "big" problems for a business.
"Small companies often do not have the need or resources to employ a full-time human resources manager. Human resource generalists in medium-size companies usually do not have the depth or breadth of knowledge to fully support the organization". "Without effective...human resources practices, programs, and policies, a business may not be compliant with state or federal laws. In addition, employee relations could suffer", says Suzy Nisbet, President, Strategic HR Solutions, Cary, NC. Human Resource contractors bring order, simplicity and peace of mind to the complexities of HR.
Looking at the benefits of outsourcing it becomes obvious that a company gains a competitive advantage when using experts they don't have to hire.
So what's the bottom line on the benefits of outsourcing? It helps small businesses survive and compete with the big guys who outsource many jobs. That's why company outsource managers say outsourcing is a cost effective way to increase your resources.