Outsourcing is not only carried out to save costs but is also recommended for better efficiency and superior quality in all processes across verticals. The other advantages to outsourcing include risk mitigation, optimized cost of technology, better geographic reach and scalability of resources. However it is very important to choose the correct model for outsourcing your processes, especially in case of your internal functions. It requires right expertise and operating efficiencies to handle a firm. The way you want the sourcing to be managed and also the location influence your decision while choosing a model.
Below are four models for sourcing that can be adopted to transform company’s finance and accounting department. Choose one ensuring best usage of lower costs, resources, efficient operations and that best suits your firm’s requirements.
It is a joint venture with the service provider wherein both of you provide the needed resources to start a new business. This includes capital, personal and intellectual property where you would also be sharing profits and losses with the service provider. If you are entering a market having intense competition, this model might be the best for your company.
This model involves the whole process to the service provider. In this model, you agree to pay a certain price for the services for the service provided while the provider does not retain any major function in house. You can observe the performance of the process without interfering the way it is carried out. However, since more control is given to service provider, this model might be suitable for only small firms whose processes are simple, measurable, and traceable.
Multi- sourcing is a type of outsourcing model where you choose multiple service providers for each of your functions. Through this model you get the flexibility to choose the best service provider for each of the process. However, multiple sourcing gets complex and the risk of outsourcing is also gets diversified while you can bargain on the price.
Build and Operate:
Here you build up a new center for the service provider. The service provider would assist you in setting up and running the same. However, you would be incurring additional costs when compared to the traditional outsourcing model and would need to share profits.
Outsourcing can be profitable only when you choose the right model that suits your firm. Ensure that you choose your KPO provider after thorough research, especially for F&A functions. A good F&A service provider would be able to help you save costs while improving efficiency and providing key personnel more time for focusing on core competencies.
You can get help to outsource your finance & accounting services from Global KPO, one of the leading Business Accounting Services & Financial Services Outsourcing provider based in India, providing services to accounting firms and businesses globally for a long time now. We have a specialized accounting team to cater varied needs of accounting firms and business. We understand Finance and accounting is the backbone for financial stability and success of a company. For more information please visit our website www.globalkpo.com