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The Outsourcing Advantage |
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Cost savings upto 50%; |
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Cost structure becomes variable; |
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Investment in assets is
lowered; |
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Accurate, fast, efficient
and timely results; |
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Benefits of outsourcer's
standardized processes and advanced technology; |
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Helps companies streamline
and improve business processes; |
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Inside resources are freed
for other purposes; |
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Increases management's valuable
time and thus an improvement in productivity; |
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Helps companies focus on
their core capabilities & businesses; |
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Off-site backup of data; |
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Get organised globally along
business lines. |
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| The
solution is outsourcing! |
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| Our expert services and
concern for client satisfaction are competitively priced, helping
clients manage costs while obtaining the services they need. |
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| For your
Outsourcing Solutions |
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The
CPA Journal Online (A Publication of the New York State Society of
CPAs) |
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"Offshore
Outsourcing of Tax-Return Preparation" |
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Promising
Business Opportunities and Professional Standards |
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By
Jesse Robertson, Dan Stone, Liza Niederwanger, Matthew Grocki,Erica
Martin, and Ed Smith |
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Excerpts from the above
Article: |
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JUNE 2005 - Outsourcing business
processes overseas is increasingly common in the banking, financial
services, retailing, insurance, and telecommunications sectors. Economists
and accounting professionals expect this trend to accelerate; Deloitte
Consulting LLP expects two million financial services industry jobs
to relocate overseas during the next few years. Many large CPA firms
have begun shifting tax-compliance work overseas, through outsourcing
facilitators, to Chartered Accountants (CA) in India. |
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Outsourcing tax-compliance
work overseas can enable CPAs to focus on higher-margin services such
as tax consulting, to reduce labor costs, and to increase the speed
of tax-return processing. With such potential benefits, CPA firms
will likely join other segments in increasingly outsourcing tax-compliance
services. |
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Some argue that outsourcing
U.S. jobs overseas is un-American. Others rightfully point out that
some overseas labor markets can be exploitative and contrary to American
sensibilities-to the extent of exploiting indentured workers or child
labor. On the other hand, some economists argue that outsourcing jobs
overseas improves world labor market efficiency and U.S. labor productivity,
and also reduces both world and U.S. inflation. CPAs that outsource
appropriate work overseas can contribute to the economic efficiency
of the United States and the world economy, and aid in the economic
development of developing countries. |
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An
Accenture Report written in co-operation with the Economist Intelligence
Unit (2003) |
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Excerpts from the above
Article: |
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Outsourcing providers pledge
to perform back-office functions, including finance and accounting,
more cheaply and efficiently than companies can do on their own,
thanks to economies of scale, standardized processes and advanced
technology. For many companies, the equation of high-quality services,
at lower prices is irresistible, particularly when outsourcing allows
them to focus on their core businesses. |
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Cost savings are the
main motivation for many executives. The cost reductions of 20-50%
reported by companies that have outsourced finance are tantalizing,
especially at a time when companies are wary of investing in operations
that do not touch the customer. "The real advantage of outsourcing
is cost savings, cost savings, cost savings," says Kenneth Joyce,
CFO of Amkor Technology, the world's largest provider of contract
semiconductor assembly and test solutions. |
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Yet, as this report underscores,
cost cutting is not the only story. Some companies are ambitiously
using outsourcing as a vehicle to promote change, for instance
as part of the transformation designed to shift corporate structure
from a more traditional organisation divided along geographic lines
to one organised globally along business lines. |
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Finance Outsourcing is
gathering momentum: As companies remain pre-occupied with costs
and determined to focus on their core businesses, outsourcing is primed
for growth. Of our survey respondents, 71% expect finance outsourcing
to become more prevelant over the next three years. 30% are currently
outsourcing finance and accounting functions, and a majority of these
think the arrangement has been very successful (8%) or successful
(57%). |
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Outsourcing reduces costs:
Companies with metrics in place to measure their gains report
significant savings from outsourcing finance and accounting functions.
For example, Rhodia, the French speciality chemicals company, reduced
spending by 30% in two years. And a commanding share (66%) of survey
respondents saw "lower costs" as the primary benefit of outsourcing.
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The benefits go further:
Reduced costs are not the only - or always the most significant -
benefit. Outsourcing enables companies to focus on their core competencies.
It relieves financial managers of responsibility for repetitive or
generic business tasks, allowing them to concentrate on high-level
management and high-value activities. And by enabling companies to
review and reshape entire business processes with an outsider's discipline,
it can help companies execute ambitious transformation plans. Survey
respondents agreed, with 55% pointing to a sharper focus on core competencies
and 32% to increased business productivity on the part of the finance
team as outsourcing benefits. |
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