Insights: Article

Outsourcing: What can it do for me and my business?

By   Scott Kost

December 10, 2014

Outsourcing is making a business decision to contract with an outside service provider for a particular service or business process. A common misconception about outsourcing is that the primary goal is to reduce operational costs. While outsourcing does frequently reduce spending, there are often more important and strategic benefits to be realized.

Delivering Value
As with any business expense, the primary question business owners and leaders should be asking is: “What business value are we getting from our spending?” The business value that can be delivered through outsourcing can come in many forms, including the following:

  • Improved Performance – High-quality outsourcing providers have established processes and technical tools that they deploy across all of their clients. These processes and tools will contribute to improved system performance and stability for each client’s needs.
  • Team Skills – Leading outsourcing service providers have assembled a full team of skilled resources that many organizations cannot easily replicate. By outsourcing some or all of your operations/services, you gain access to these resources on an as-needed basis.
  • Higher Level of Service – As your business needs change, having a strong outsourcing partner provides you with flexibility to quickly grow or adjust your capabilities to meet your business needs.
  • Reduced Cost – Many businesses do not have the need for full-time staff in a particular area of their business. Partnering with an outsourcing provider can often provide you with a lower-cost alternative to hiring internal full-time staff for these functions.


Options & Expertise

In today’s business climate, there are options available for outsourcing in nearly all aspects of your business operations. In addition, outsourcing service providers typically offer several levels of services—from outsourcing a simple task to more complete business process outsourcing offerings. The following diagram highlights several of the most common types of outsourcing services:

Latest Insights

July 13, 2018
Article
Here are some idea for giving your new hire a smooth start into your business and alleviating stress for you.
July 13, 2018
Article
The impact of the recent SCOTUS Wayfair decision will continue to have a ripple effect on businesses and state sales tax compliance.
July 9, 2018
Article
The revenue cycle is a complex system and we have historically given much attention to the front-end and back-end while oftentimes leaving the middle functions of the cycle neglected.
July 3, 2018
Article
FASB Accounting Standards Codification Topic 606, Revenue from Contracts with Customers, provides a 5-step framework for determining revenue recognition.
July 2, 2018
Article
As part of the Tax Reform Act of 1986, the “Kiddie tax,” a taxing regime designed to make the transfer of income items by wealthy parents to lower tax paying children less attractive, was implemented.
July 2, 2018
Article
When it comes to your employees, you likely conducted interviews on them when you first hired them.
July 2, 2018
Article
Nearly ten years after the release of the initial exposure draft, FASB issued ASU 2016-02, Leases - The standard may have been issued, but the conversation about this re-write of legacy guidance has not slowed.
June 29, 2018
Article
Banks look at three broad categories when considering small business financing: business cash flow, personal financial strength, and collateral value.
June 28, 2018
Article
You need to be cautious when entering into a bartering relationship and remember to track everything and the key to accounting for bartering is making sure you still record the income earned and expenses incurred.