FOR AND AGAINST FOR OUTSOURCING SERVICES

Outsourcing is a hot topic nowadays in overseas countries. The trend of outsourcing is no longer a newer concept which is used in business lines. This practice came into existence in the late 90s, but this practice has gained its peak mode in the last decade. You all must be aware of the general meaning of the term outsourcing. Business firms are now engaging in the practice of outsourcing, whether they are large firms, small firms, CPA firms or single-owner firms.

Outsourcing refers to the process when one delegates its business process/operations to external or third parties in order to get done work from them. Outsourcing is generally done in three ways:

• Offshore
• Onshore
• Near-shore

There are varied kinds of outsourcing services which the company delegates to the third party. The list may not end, but the main services are listed below:

♦ Accounting And Bookkeeping Services

♦ Payroll Services

♦ A/R And A/P Management

♦ Invoicing And Billing Services

♦ Human Resource Management

♦ Tax Services

♦ Supply Chain Management

♦ Asset Management

♦ Customer Management

Other than business firms, diverse enterprises are now outsourcing their business operations to outsourcing firms. Concerns may include manufacturing, healthcare units, its services, tax businesses, banking and so on.

The majority of the outsourcing jobs are given by the U.S. and from countries like the U.K., Australia and Canada. Their main targets are Asian countries like India.

There is always a question in the mind of business management about deciding between HIRE or OUTSOURCE. At the same time, deciding on this situation company took into account various considerations to get the results. The company will always choose the profitable option. Outsourcing always comes in the recruitment process. There are several opportunities and shortcomings for the outsourcing services, which are discussed below:

OPPORTUNITIES/FOR:

► Outsourcing services may give larger job opportunities from the developed countries to the developing countries.

► This practice can make international affairs stronger than before between the countries in which outsourcing contact is made.

► Outsourcing may reduce the cost of the recruiting process, and there will be no need to acquire new employees for the firm.

► The outsourcing process is a cost-effective technique. The firm can reduce their overall overhead expenses of operations and management with this practice.

► The outsourcing company may have access to new skills and an expertized workforce from another area. They don’t need to find it by themselves.

► The outsourcing services can increase the overall efficiency and productivity of the firm as the firm can now focus on its core activities.

► When the overall productivity of the firm increases, ultimately there will be growth and expansion of the firm in each focused area.

SHORTCOMINGS/AGAINST:

► The data/information may suffer from privacy issues. It is possible that there can be a situation of data stolen and misuse.

► The stored data in the outsourcing firm’s software may get hacked or can be deleted mistakenly. Safety and security of information can be suffered.

► There can be communication barriers due to differences in the language spoken in the country.

► There can be differences in the culture of the company or country with which your outsourcing contact is been placed.

► The outsourcing company may lose control over the activities which have been outsourced, and even those activities cannot come into the hands of the companies again.

► There can be doubt about the quality of services rendered by the outsourcing company. There can be the situation of non-following of outsourcing country’s norms and procedures.

► The native country which is providing the outsource activities to other countries, is declining the job opportunities in their own country.

Although there are several demerits of getting involved in accounting outsourcing services, its advantages outweigh its disadvantages. But both sides are important to consider when you are deciding on this area. The main advantage of outsourcing is of cost. And even business firms can focus on their core activities.

Accounting Outsource Hub LLP deals in providing you with the outsourcing services that will affect your business. You can outsource every single business process. So that we can manage your business operations and you can focus on the core area of your business. We have the lowest operation costs for all our outsourcing services. We are here for the purpose of managing your fund only. Our services are very economical. We want to stand apart from the crowd of other outsourcing organizations/clients by connecting with more new clients like you.

Call Us, E-Mail Us Any Time For Free Demo Or For Making Us Placing The Quote For You.