Today expansion starts at an early stage and “Born-global” companies are getting more and more attention. However, internationalization increases complexity, particularly if it involves dispersion of business process across several locations. For that reason many smart companies have taken the advantage of the digital era where companies function in a wirearchy of increased collaboration and have decided to look for external business support. Of course there are also those which have decided to keep services housed internally, managing from within and scaling under a complex internal structure which is perfectly fine because they may not still be ready for the next step.
So how do you know if you are ready for the next step?
This article provides five signs which will indicate that your company has matured for outsourcing and as Lee Kuan Yew said:
“If you deprive yourself of outsourcing and your competitors do not, you’re putting yourself out of business”
Note that, not necessarily all the mentioned situations (signs) bellow apply at once to every single company but if the overwhelming majority of signs indicate you’re ready to take the next step, consider that you just might be a company primed for outsourcing.
Your business operates on more than one location
Global businesses today take advantage of technology advances and often disperse their business across multiple locations to benefit from economies of scale and scope. One of the two motives can be skills shortages at the HQ location or labor arbitrage. In addition, addressing millennials needs many companies offer flex-time, telecommuting or work-from-home options to your employees. If your company is already setup to engage with employees in various situations, outsourced help will fit in just fine.
Routine-based activities take up too much of your time
Competition today requires a whole new level of efficiency. If you are start-up you either have limited time or limited resources in the form of people or money. You need your best people to focus on core activities and eliminate any distractions on daily basis.
Routine-based activities with tangible nature are easier to navigate, delegate and coordinate from a distance. Such tasks can be AR or AP in accounting for which companies are increasingly looking for outside support. Freeing up your top talent to focus on business development is crucial for success.
Your Systems Are Cloud-Based (Or You Want Them To Be)
The cloud technologies have opened up new opportunities for business collaboration between and within companies.
Past article on Cloud enabled collaboration talks more about the benefits of the cloud particularly for the accounting departments. The new ways of working have removed geographical limitations and leveraging the power of a seasoned expert services provider.If your accounting data, programs or processes are already cloud-based, shifting to outsourcing to manage your accounting is an easy transition.
You Know that Outsourcing is not only about cost savings
Back in the days when outsourcing appeared it was perceived as low-skill work mainly driven by cost savings and done off-shore. Today various locations from South Eastern Europe have emerged as most popular for outsourcing and businesses increasingly prefer to nearshore their outsourced tasks looking for higher efficiency and specific skills.
If you are in your expansion phase and things are moving fast you mind find yourself in a situation where you’re outpacing your abilities to manage it all. If keeping up with your bookkeeping starts to become challenging, advanced external support will benefit your business in great manner. One of the easiest ways to ensure you stay on top of it is by leveraging the scalability of an service provider that can offer stuff augmentation and add personnel without any effort on your part.