Outsourcing - Get Informed!

What is Outsourcing?

Outsourcing is the widely accepted management practice of restructuring assets to create a more flexible organization that is better able to focus on its core competencies. It takes a non-revenue producing function and turns it over to a third party, thereby relieving the organization of responsibility.

What are the benefits of Outsourcing?

  • More expertise
  • Free up capital
  • Better compliance
  • Lower cost
  • More efficiencies
  • Reliability
  • Guaranteed accuracy
  • Access to better technology
  • Improved service levels

    This is just some of what you receive when outsourcing administrative functions to ESS.

    What are the potential savings related to Outsourcing?

    It is critical that owners and managers understand the real costs of performing the many administrative functions that are required of companies. The true cost is often not realized because of the complexity and volume of both soft costs and hard costs alike.

    Below is a small list of costs associated with several non-revenue generating, required administrative functions.

    Labor
    Time performing actual tasks
    Initial training of staff to perform these tasks
    Continuing education of personnel performing tasks
    Time-off of personnel performing tasks
    Taxes and benefits for staff performing tasks
    Administrative personnel turnover
    Recruiting
    Interviewing
    Downtime
    Training
    Errors
    Software including maintenance and updates
    Data backup
    Processing errors - tax penalties, time to correct errors, employee morale issues
    Office space, computers, and maintenance for staff performing tasks
    Checks and toner
    Bank fees

    Expertise and Cost are the two most important reasons companies outsource. Smart companies understand their real costs and the value of outsourcing. You owe it to yourself and your company to understand your cost and the value of outsourcing.