5 Advantages of efficient outsourcing

5 Advantages of efficient outsourcing

12th February 2020

Simply defined, outsourcing is the relocation of some business functions and processes to a third-party service provider in order to encourage productivity and profit. Outsourcing has become a practical solution for businesses of all stages and sizes. From start-ups to large corporations, the benefits of outsourcing remain viable both practically and financially.

While to some individuals going down the outsourcing route is an obvious choice, others may need a little more assurance. Here are five advantages you can gain through effective outsourcing:

1 -The ability to focus on the key function of your business

Enabling your company to achieve its primary purpose requires the support of dozens of activities thatare unrelated to itscore focus.Business owners frequently find themselves bogged down by unrelated, yet essential, tasks like bookkeeping, tax filing, and monthly payroll. The list can be endless.Outsourcing some or all of these will shorten your to-do list significantly — and that means you can get back to running your business.

2 -Increased productivity

Connected to the benefit mentioned previously, placing your trust in a third party company with more substantial experience will allow employees to work more efficiently. Having  the right partner with the appropriate  knowledge and expertise could boost company productivity considerably, as it will allow the in-house team to focus more, without splitting their attention across numerous tasks.

3 -Cost savings

Outsourcing is also advised when companies want to increase profit margins with savvy saving techniques. Companies can reduce costs by choosing to outsource their activities. This will alsoincreasechances of freeing resources for further investments in other areas of their market. In practice, a company might increase control over theirbusiness capital by employing an outsourced team to handle a particular task instead of paying monthly wages plus benefitsfor full-time employees.

4 -Easy access to cutting edge technologies

This is probably a benefit most relevant to small or medium sized businesses. These can rarely afford to purchase and integrate complex technologies. Outsourcing relevant and game changing technology can help these growing businesses to expand their reach in two ways: benefitting from the technology, and using the money saved to investinto other resources.

5 – More hours in the day

Most companies find that time is their enemy. While it’s impossible to add more minutes to the clock, it is possible to outsource to a company in another timezone. In other words, a business might find itself increasing operational hours by hiring people for certain tasks, who will get thework done while the office is closed in the company’s timezone. This could result in a business that maximises value by running round the clock.

Which tasks can be outsourced?

Business owners can outsource almost any task, however, some of the most commonly outsourced functions are:

  • Accounting/bookkeeping
  • Payroll
  • Internal Audits
  • Tax and advisory
  • Virtual assistants (for administrative tasks)
  • Translators
  • Customer support
  • Inventory management
  • Order fulfilment

Are you looking to outsource your accounting, tax & advisory or internal audit functions? Feel free to contact us via our contact form or on info@ctaudit.com.mt!

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