Before answering this question, I would like to share the reason of “Why should we use outsourcing services?” Most organizations choose the non-core functions of their business to outsource and most reasons are to reduce and control operating costs, challenges, lack of know-how, mitigate legal risks, focus on core business processes and also improve regulatory compliance and etc. You can read a previous blog on the topic by clicking here. For the question, these are the list of functions companies outsource the most,
Complete visibility of your company’s finances is essential when running a business. Many companies do not have the internal expertise to track everything that is going on with their finances. Outsourcing your finance (financial management) can help tracking them and smooth out your cash flow. You may not want lingering tax liabilities or other financial issues due to incorrect financial data, using a third-party organization can solve not only that problem but also can reduce the paperwork mess and not knowing where to start. Outsourcing your audit can also pinpoint where your compliance efforts may be lacking. Outsourcing your audit is important because it provides a set of financial statements and gives the shareholders confidence that the accounts are true and fair and also helps to improve the company’s internal controls systems and financial year-end review.
- Legal Services
Most small companies do not have the workload to have their own legal department, even some large companies too. However, having a legal team supporting the company is essential to ensure the company is protected. Outsourcing legal work has become a trend in the past few years. Also, outsourcing legal services can provide high-level legal talent and niche expertise in nearly every situation. Using outsourcing services can cost significantly less than having a legal department in your companies by avoiding fixed costs of salaries and benefits associated with full-time, permanent personnel etc.
- HR Services
HR consulting, administration, timesheet tracking, payroll services, recruitment, performance management, staff training and coaching, Labor law compliance etc., are the most popular functions of HR to outsource. For small companies, outsourcing some HR functions will help you to know what you need to do and help you to focus on growth, not administration. These functions can easily waste valuable time just trying to understand the regulations and preparing the required paperwork. For other areas of HR, outsourcing can help to meet all your human resources needs. For example, you can recruit expert employees without spending plenty of time while focusing on your core business. You can also minimize time on document administration. Outsourcing HR can also save your company money. For example, – spending less on salaries, reduce costs of hiring and training and avoiding penalties from noncompliance, to name a few.
There are more popular outsourcing services. In this blog, I have only mentioned Finance, Accounting and HR outsourcing. If you interest more about outsourcing, you can read at https://www.myanmar-payroll-and-outsourcing.com.mm/