About Us >> FAQs >> Accounts Outsourcing FAQs

FAQs

Q1.What is Outsourcing?
A1.Outsourcing takes place when a Company transfers the complete ownership of a business process to a supplier. That supplier will then perform the business process for the Company. The critical point to understand is the transfer of control of the business process away from the Company to the supplier. Hence there is a very close relationship between the Company and the business process outsource supplier.

Q2.Why Outsource?
A2.Companies outsource

• To reduce and control operating costs
• To change fixed costs into variable costs
• To improve Company focus
• To improve the quality of the work
• To access improved capabilities and expertise
• To free internal resources

These are some of the main reasons, there are many other reasons to outsource a business process.

Q3.What business process’ are outsourced?
A3. Many parts of a business can be outsourced. Most Companies would consider outsourcing any activities that are considered to be non-core. These would include Information Technology maintenance, the payroll function and the accounting and finance process. These are all functions that the Company may be capable of doing, but would prefer to let someone more specialist knowledge perform on their behalf.

Q4.Isn’t Outsourcing just a type of contracting?
A3. As the Company will transfer the complete process to the business process outsourcing supplier, there needs to be a close relationship and level of co-operation and trust between the Company and the Supplier. The relationship usually will be expected to last a number of years as there many be a large investment in capital equipment made by the supplier.

Q5.What does an outsource solution cost?
A5. Every process needs to be looked at individually, however the Company should expect to be able to negotiate either a cost saving over doing the work itself, or improved service standards from the supplier.

Return to FAQs Home