What are the key benefits of outsourcing administration, HR and financial functions of a business?
From SMEs to global blue chips, outsourcing is a strategic way to promote growth, keep operational costs low and improve efficiency. Take a look at our 10 reasons why outsourcing might be good for your business.
- Save money – Often the key motivator for many companies to outsource; perhaps your business has been awarded a new contract, but you will need to invest in new kit or expand your team in order to deliver. This may create a further need for increased office space. All of this comes at a cost and at a time when you may not be in a position to make that leap. This is a perfect example of when short-to-medium- term outsourcing could be key. By working with a third party who can deliver these services, you can minimise cost across all areas - HR functions, new starter kit and IT support, employee benefits such as healthcare, payroll taxes as well as time training and on-boarding. Get the same impact on your business for much less expenditure.
- Flexibility – Outsourcing provides companies with a degree of control not available when all your functions are operated by salaried staff. Outsourcing gives you the ability to switch on, off, or pause services at any time. This can act as a short-term fix when things are busy or during your seasonal period.
- Compliance – With regulation and legislations constantly being updated, on top of the stringent GDPR and Data Protection due diligence that we must already be executing, outsourcing services that expertly deal with data will prevent you from eye-watering penalties.
- Time to focus – In SMEs, HR, finance administration and compliance functions are often managed by others who may wear several different ‘hats’ which will take them away from their day job – and their real expertise. Outsourcing businesses will have a team of experts within these fields who will provide the service much more efficiently. This means that rather than balancing the books and completing 'right to work' checks, a business owner can spend time on the core area of their business.
- Remove stress – all responsible companies should be mindful of the stress levels of their employees and the impact of this on their mental health; By handing over management of services to an external expert, staff can be relieved of the ‘hamster wheel’ effects of HR and Payroll which can be unrelenting and challenging.
- Efficient and process-driven – As your business has grown, have you taken the opportunity to step back, pause and review your processes? Often it takes someone new coming into your business to highlight a better, more efficient way of working. By partnering with an experienced Outsourcing firm, you will get access to solid, effective, results-driven processes which they are then able to implement for you. If you have planned for your outsourcing to be a temporary solution, this will give your business the opportunity to review how you do things and if there is a better way of working.
- Access to skilled personnel – Training is necessary to keep your business ahead of your competitors, but it is often an area that gets neglected due to cost and time restrictions. A benefit of partnering with a professional outsourcing agency is that they will be trained in the latest technology and software, hold valid accreditations, and have a solid grasp of the latest trends.
- Bridge time zones – Is your business a 9-5 business but you aspire to make the leap to the global stage? If your administration functions worked across a global time zone, you would have the ability to bring your product or service to a wider audience. Rather than deal with the complexities of operating a 24/7 business, using an outsourcing business could deal with enquiries and services when your office has closed its door for the day.
- Accuracy – The monthly paycheck is the number one motivator for colleagues to come to work and making mistakes here with payroll can damage the trust between you and your staff so getting this right is vital. If your finance operation is fulfilling many other tasks, perhaps it is time to consider whether a dedicated payroll function that sits outside your operation would be a valuable asset?
- Open your business to new markets – Partnering with a respected outsourcing business will put your company in an advantageous position to work with other companies. Your relationship with your outsourced partner should be mutually beneficial – they will want to see their client prosper and can put you first in line when new opportunities might be available for your business.
Controlaccount Plc has been providing outsourced services for 40 years to the world’s most trusted brands as well as SMEs. We would be more than happy to have a chat to see if any of our services could benefit for your business. Call on 01527 549 522 or email us here.