What is Outsourcing?

Outsourcing generally appears to be a word that everyone knows of, but doesn’t really understand. Global Infosys look to inform and educate everyone on what outsourcing is, and the positive effects it can have on a business. Let us give you a brief explanation of what outsourcing really is:

Outsourcing is what happens when you decide to ask a business or individual who is not directly employed by you to complete a core task, responsibility, process or function which is normally done by someone employed directly by you. It really is that simple.

Interestingly, when you talk about outsourcing in this context, it produces a strong reaction – often one of fear. But it’s worth taking a step back and thinking about outsourcing more generally. Without realising it many of us almost definitely outsource in our personal life, fairly often.

These are all examples of outsourcing that we’re sure many of you have partaken in, and haven’t even realised:

• Grabbing a takeaway rather than cooking an evening meal
• Using freelance resource to help complete a project
• Using a nanny, childminder or nursery to look after your children while you are at work
• Working with a virtual assistant

In an accountancy context, outsourcing is where you employ freelance or outsourced resources to typically help you complete compliance type tasks, e.g.

• Preparing year end accounts
• Bookkeeping
• Personal and corporation tax returns
• Payroll

There doesn’t need to be any fear around outsourcing. Outsourcing simply helps a company achieve its goals while allowing them to expand their network and clientele.

If you have any queries regarding outsourcing, please contact us on 0208 424 8916

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Posted in For Accountancy Practices.