Ecommerce Startup
12.05.2022 Ecommers and micro business online For some time, you have been thinking about starting a company? Hoping for the dream come true of eventually
15.04.2022
Outsourcing
Efficient business development becomes more and more challenging, not just because of the huge competition on the market, but also due to increasing number of obligations imposed on entrepreneurs. Because of that, outsourcing is a great way to get rid of some of the administrative burdens related to management and financial tax accounting.
Focus on the issues related to
the key profile of your company.
We will take care of the rest!
What’s it all about?
Globally, companies are dedicating increasing resources to delegate document management (accounting, legal, payroll etc.) to external companies. Outsourcing is just that – delegating activities unrelated to the main company profile to the other companies.
Outsourcing has many faces. Starting from simple projects that improve business processes, resulting in decreased costs, all the way to complex projects, that lead to creation of virtual organisation. For instance, in USA and Eastern Europe, companies usually decided to outsource the following departments: IT 38%, HR 19%, distribution and logistics 15%, accounting and finance 21%.
When to outsource?
Traditional outsourcing is used when services offered by external companies are either cheaper or of higher quality than internal ones. For a company it is absolutely crucial to focus on the strategy and implementing the mission. Outsourcing could involve simple tasks such as cleaning, security or catering as well as functions supporting the strategy: finance, HR and customer service. However, departments of strategic importance should always remain in the company.
What are the benefits?
Outsourcing is a partnership agreement, where both parties aim to perform as well as possible on the market. Outsourcing allows you to focus on the key tasks for the company, which increases its efficiency. Because of that, companies save money as they do not have to invest in employees, technologies and additional office space. The decision to outsource is often made when the companies do not have the ability to conduct such activities. Frequent changes in the regulations of commercial law, labour law and social and health insurance, and thus the need to constantly follow the regulations
and adapt to new requirements makes it necessary to employ qualified specialists. This would inevitably lead to the rise of costs of running a business. A more effective and cheaper solution is to delegate these tasks to external companies.
In summary, Outsourcing is...
- reducing costs, as the company does not allocate funds to create and maintain new jobs, or to pay for health and social insurance liabilities etc.
- delegating part of the responsibilities to a group of professionals, whose skills and experience
exceed those of our employees - increases stability of the care of the entrusted property and organizational functions of the company
- no burden related to sick pay or annual leave of the company’s staff
- access to the services offered by highly skilled experts
- bypassing the hiring freeze (an external specialist uses the workplace
and software of an outsourcing company) - more effective use of the working time
- by working with an external company, you avoid the burdens related to overtime or work on weekends
- easy access to the latest technologies
- the ability to access achievements in the field of management and organization
- allows to maintain the desired level of jobs, ensuring a sufficient number of suitably qualified employees
- increases the efficiency of all organizational units of the company,
as the most time-consuming tasks are being outsourced
What are the benefits?
Before deciding to cooperate with an outsourcing company, you should first check if:
- they have the references and certificates that confirm high quality of services
- they ensure the confidentiality and security of the date (e.g., employees and customers personal information) they will manage, as well as an easy access to those information.
- cooperation will bring the company benefits in form of cost reduction or improved quality of document management, and will not lead to drastic staff reduction in the company
- Cooperation expenses can be planned 1-3 years in advance, therefore if they are predictable (which is desirable) or are they volatile and sudden increases can be expected (non-desirable).
