Magazine article The CPA Journal

The Benefits of Outsourcing

Magazine article The CPA Journal

The Benefits of Outsourcing

Article excerpt

A SUCCESSFUL OUTSOURCING EXPERIENCE IS dependent upon a partnership between the two organizations. .......................o...............o...............................

Outsourcing is as old as business itself. From the earliest times, business owners have acknowledged and identified that they do certain tasks very well, namely those directly related to their core business. Other tasks-the necessary evils-are nonetheless critical to the ongoing success of their businesses.

It is impossible today to read a newspaper or business publication without encountering the word "outsourcing." Whether it be the safekeeping of banknotes, transportation of products to customers, or off-site management of human resources, it stands to reason that outsourcing usually provides tangible and measurable "hard dollar" benefits to businesses. Conceptually, its merits fall along the following lines:

Lean and mean machines.

Outsourcers are usually their own profit centers. Consequently, their resources tend to be dedicated to the task and functionally efficient. Specialists bring a high degree of practical experience and competence.

Duplication of efforts. Often a business's lack of internal expertise or dedication to non-core tasks results in poor attitudes and ultimately poor performance. This can lead to overlap and duplication of internal efforts. An effectively designed and ongoing communication process emanating from one or more outsourcers can greatly reduce or eliminate these duplications. The communication requires an awareness of the processes involved, associated responsibilities, and anticipated deliverables. This will reduce frustration and provide a clear path to resolution of operational malfunctions that may occur between the company and its outsourcers.

Reliability and consistency. It is usually a good idea to design, implement, and maintain an information exchange system that is consistently applied to expected situations and not sensitive to transaction volume. This way, individual expectations are well managed and information is easy to locate and decipher. Outsourcers have a vested interest in implementing a consistently applied series of processes that are scalable, reliable, revisable, and freely transferable.

Concise record-keeping and redundancy. …

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