Outsourcing: 5 Frequently Asked Questions (FAQs)

When explaining the outsourcing concept to potential clients, we get asked certain questions time and again. In an attempt to help clear up some misconceptions around the process and help you decide if outsourcing is the right answer for you, here are some of the most common questions, and their answers.

  1. How can I be sure of sharing my confidential information?First of all, any good outsourcing company will sign a comprehensive Non Disclosure Agreement before entering into a project. This is a legally binding document. Just as important, an outsourcing company’s repute and business depend on their reliability and confidentiality. It would only hurt their business in the long run, were they to violate your trust.
  2. Will the resources working on my project also be working on other projects?Depending on the man hours required for the project, we will most likely assign resources exclusively to specific projects. You may also specify the same.
  3. Won’t I be better off with a big name?There are two aspects to this: economy and commitment. When you are running an SME, you need to control costs. When you engage a big name, you are paying a rate that is competitive against the rates companies with much higher buying power can command. A smaller, focused firm like ours can offer you better value for money. Furthermore, with a smaller firm you can interact with everyone involved on a one-on-one basis and be sure of their commitment to your project.
  4. Isn’t outsourcing only for big companies?If anything, business process outsourcing can be even more of a boon for an SME. It allows you to free up time and resources to focus on your core business. Getting the most out of each rupee you spend is a priority, and with outsourced non-core processes you save on investing in specialized resources that are not connected with your main area of business.
  5. We don’t have time to get into outsourcing, so it is not a big priority.This is precisely why outsourcing is the right solution for you. You need to be able focus on what’s most important to you – and outsourcing non-core functions frees you to do this while being assured that these processes are being carried on in an efficient, transparent manner.
Payroll outsourcing: solution for SMEs

There’s no denying the importance of professional payroll software when it comes to managing your company’s payroll. The benefits involve an immense saving in effort while providing you with a great deal of transparency across the whole payroll workflow. It’s all perfectly logical and simple, so far. But what about the reality of selecting the right solution for your company? That’s where it gets a lot less simple.

Because there’s no shortage of options to pick from. There is a glut of competing solutions on the market, all claiming to offer you the best return on investment ROI. You can pick up a solution from one of the top 5 service software providers on the logic that you are paying a premium that will justify itself amply. Or you can shop around for a boutique offering that offers greater customisability. The options can seem endless, and in the case of a small or medium enterprise (SME), you simply may not have a skilled resource in-house who can wade through the veritable flood of offerings to find the holy grail of a solution that is the perfect fit for your business.

Even if you find a great solution, there’s the functional aftermath to consider. You need someone who is skilled enough to extract the optimal utility from the software. This means hiring a full-time, highly-skilled resource for a very specialised job. You also need to ensure that you are installing all the updates and patches you need. If something goes wrong, you have to interface with the software provider for servicing, supposing there is an after-sale support option at all.

That’s a lot of time, effort and money to tie up in one process, however vital. And in an SME environment the accent is on smart, agile solutions. Solutions like outsourcing your payroll process to a skilled partner. This immediately takes the burden of finding, operating and maintaining the right solution off you, saving on time and effort. You also save on costs because a specialised partner has already invested in the requisite infrastructure and resources and does not need to charge you the entire cost of their operations. All compelling reasons why you should seriously add a process outsourcing partner like Alp Consulting to the head of your consideration set!

In-House Payroll software is redundant: here’s why

An in-house payroll software solution might seem like a good solution to organisational needs; it isn’t always that simple. You have to consider overall scale of operations, available resources and effort, especially within the context of a small or medium business (SME). Payroll solutions need to deliver the best results at the best price with a minimum of effort; SME energies are better focused on growing core business and remaining competitive.

So let’s look at the ways in which in-house payroll software becomes less efficient than an outsourced payroll process:

Security: Payroll processing demands a considerable level of security. This includes firewalls, high-level encryption and extensive data back-up. If you’re installing this level of security purely, or solely, to secure your payroll process, it’s a clear case of overkill. A dedicated process outsourcing partner would already have the requisite security framework in place – this can be audited during the pitching stage itself.

Maintenance and updates: With in-house software, updates of new tax tables and of course performance upgrades will be needed at least once a year. You will need to invest in a server and in a skilled resource to maintain the software. Again, given the need for efficiency and economy, it would prove more sensible to outsource to a partner who is already taking care of these aspects as part of their professional ambit.

Integration: Then there’s the question of whether the software integrates with your other IT infrastructure and delivers a usable output. Ensuring this might require the inputs of a programmer-level resource as well as extensive research.

Direct Deposit: Setting up and updating direct deposits with in-house software can be a time-consuming, complex process, if such an option is provided at all. When you outsource your payroll process, however, the onus of updating and maintaining direct deposits falls on the provider, who has already invested in the skills and bandwidth to do so.

It comes down to a trade-off between control and convenience. Even boiled down to these terms it’s worth noting that an outsourced solution still lets you retain control over how you run your payroll process – however, your outsourcing partner takes the time- and resource-intensive aspects off your hands, freeing you to focus on driving your business growth.



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