Saving money is among the most compelling motivations that make outsourcing non-core processes like compliance and payroll an attractive solution for SMEs.The accent is on saving on time and expenses to stay competitive in the SME space. But process outsourcing comes with its own fees. So how does the saving factor come in?
Let’s consider the costs of setting up your own payroll process, as an example. There are several factors involved, all of which incur their share of expenditure:
- Cost of software
- Cost of infrastructure acquisition/upgrade to run software
- Cost of regular updates
- Cost of hiring a skilled asset to operate software and carry out all related tasks including direct debits, generating reports
This can be a considerable cost, and one that does not directly generate profitability for your business.
Compare this with outsourcing your process to a company that has already made all these investments and is monetizing them via multiple projects.
Instead of incurring all these costs on your own, it’s like spreading the costs across your outsourcing vendor’s clientele. And, since this particular process area is a special area of focus for the partner, you can be assured that they will upgrade their infrastructure and skillsets on a regular basis – something that might be difficult for you to since you have to focus mindspace on your own core business.
Essentially, you’re just paying for the expertise and infrastructure that has already been accrued to be implemented on your behalf. This can easily deliver savings of as much as 80% compared to the huge shopping-list that comes with an in-house process. If you’d like to see what kind of savings you can get when you outsource your payroll or compliance, contact us right away!