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Outsourcing (or contracting out) is often defined as the
delegation of non-core operations or jobs from internal
production to an external entity (such as a subcontractor) that
specializes in that operation. Outsourcing is a business
decision that can be made for quality or financial reasons. A
subset of the term (offshoring) also implies transfering jobs to
another country, either by hiring local subcontractors or
building a facility in an area where labor is cheap. It became a
popular buzzword in business and management in the 1990s.
Overview
Outsourcing is defined as the management and/or day-to-day
execution of an entire business function by a third party
service provider. Outsourcing and out-tasking involve
transferring a significant amount of management control to the
supplier. Buying products from another entity is not outsourcing
or out-tasking, but merely a vendor relationship. Likewise,
buying services from a provider is not necessarily outsourcing
or out-tasking. Outsourcing always involves a considerable
degree of two-way information exchange, co-ordination, and
trust. Organizations that deliver such services feel that
outsourcing requires the turning over of management
responsibility for running a segment of business. In theory,
this business segment should not be mission-critical, but
practice often dictates otherwise. Outsourcing business is
characterized by expertise not inherent to the core of the
client organization. A related term is out-tasking: turning over
a narrowly-defined segment of business to another business,
typically on an annual contract, or sometimes a shorter one.
This usually involves continued direct or indirect management
and decision-making by the client of the out-tasking business.
The international context
With the rise of globalization, many companies are turning to
either offshoring, offshore outsourcing or Global Sourcing.
Offshore outsourcing more and more takes the shape of
CPA firms and Small Businesses are discovering that outsourcing
your bookkeeping saves payroll, overhead cost and it's a giant
step in freeing up valuable time.
As a business owner your time is best spent doing what you do
well - working with customers. Time spent on bookkeeping
problems add little or no value to your customer relationship.
To remain competitive, it is imperative that a company rethinks
its strategies, take a hard look at where they are creating
value for their customers, then focus on those processes.
35% of America's largest businesses outsource their bookkeeping.
Because of new technology advances you now have the same
alternative as Fortune 500 firms, no matter how small or large
you are.
The most successful businesses of today have gone to outsourcing
and now have time and money to spend on differentiating
themselves in the marketplace. If you are looking for ways to
reduce overhead and focus on your core business, now is the
perfect time to make the switch to outsourced accounting.
This allows the customer's key financial staff to focus on
higher value finance functions focused on controls and decision
support. It also allows the company to variablise its
back-office cost, save on back-office investment and allows it
access to strong back office administrative talent.
What Services can be Outsourced
to India?
E-accounting - Bookkeeping
Tax Returns
Business analysis
Data Entry for Payments and Receipts
Bank and Credit Card Reconciliation
Accounts Receivable / Payable
General Ledger Maintenance
Trial Balance
Monthly, Quarterly and Annual Financial Statements
Customized reports
Payroll Accounting
Conversion to QuickBooks from any other software
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The Location
Advantage –
Close proximity to the SAFE and SE-ME-WE3 submarine cable
landings.
Ideally located to receive reliable, abundant and cost-effective
band width
Human Resource Advantage –
Highest density of science and technology personnel in India
Lowest employee attrition rate in the country - <5%
English-speaking and highly educated workforce
79 engineering colleges in the state
Database of readily employable graduates, enabling interested
companies to access the best of professional talent.
Training for HR pool
The Communications advantage -
100% of 988 telephone exchanges are digital
98% of telephone exchanges connected by OFC to the National
Internet Backbone (NIB)
Reliance, Bharti, Asianet laying own OFC backbones
Highest telephone density; 10.98 per 100, double the national
average
'SEA-ME-WE-3' and 'SAFE' submarine cable landings (1 0f the 2
states in India to have two submarine cable landings)
15 GBps bandwidth supported
VSNL's primary international gateway in India is in Kochi,
Kerala, handling two third of the country's data traffic. |
