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5 Outsourcing Models Available for Your Business

By Infinit Outsourcing Subscribe to RSS | August 16th 2012 | Views:
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The N+1 Theory suggests that there is always one more of everything. Most of the time, this is true. But there are also cases where in the +1 in the theory could provide better results. Simply take the case of finance and accounting, where the old methodologies employed by companies such as manually inputting the numbers and figures for each of the employees’ corporate finances could be definitely exceeded by its +1, which is to engage in finance and accounting outsourcing. By doing so, your company will be saved from the troubles of committing mistakes in calculating employee salaries and deductibles.

Finance and accounting outsourcing covers all areas within that specific department, including general accounting and bookkeeping and accounts payable services and accounts receivable services. It is suggested in an infographic published in Focus that both billing and accounting aspects are two of the processes that were initially outsourced to offshore solutions providers. When these administrative tasks are done manually, it definitely paints a mental picture of a tedious work process. To lessen the drawbacks of employing old and manual methodologies for the finance and accounting aspect of the business, it is highly suggested for your company to seek the assistance of an expert – a finance and accounting outsourcing solutions provider.

With the number of outsourcing companies that provide finance and accounting services today, potential clients will no longer have a hard time looking for the outsourcing provider that is fit for their businesses. There are existing outsourcing companies that offer boutique services that will be tailor-fit for your company’s processes.

Once you have identified the accounting process that you want to delegate to an offshore team, it is best if you can also identify which business outsourcing model is most suited for your business’ needs.

Staff Augmentation – This model allows companies to add contractors or temporary staff to a team once in order to meet the demand. In this model, the company may have complete control over their staff members and daily work

Project-Based Outsourcing – From the name itself, this model is on a per-project basis wherein companies outsource an entire project to a solutions provider as the latter acts as a partner to the client.

Out-Tasking – A shortage or cost of skills necessary to conduct a task may happen, which is why companies identify the skills – those that can be separated from the general process – and look for an outsourcing partner who can provide them and perform certain functions.

Managed Services – The business model that usually spans over a long period of time and is driven on a measure of value based on defining the requirements and the performance criteria basis. This is the usual model applied by large enterprises and those companies with multiple clients.

Build-Operate-Transfer (BOT) – In this model, the solutions provider operates the business over a period of time and then later on transfers the operations to the client.

All business models mentioned above are quite prevalent in the outsourcing industry, however, it seems that preference for both Project-based Outsourcing and Managed Services are increasing.

It is best to identify which among these business models are suited for your company’s needs and operational duties because once you have figured out that your current business model is not working, it is quite challenging to transition from one model to another.

About Infinit-O

Infinit-O is a boutique outsourcing solutionsprovider that caters to both small and medium-sized enterprises (SMEs). Among the services being offered by Infinit-O are general accounting, accounts receivables and accounts payables.

Infinit-O assists their clients in identifying which outsourcing model is best for their business. This has helped their clients in the United States, EMEA and APAC fully maximize their outsourcing partnership.

Infinit Outsourcing - About Author:
Jamee C is a Strategic Solutions Specialist of Infinit Outsourcing, a leading provider of outsourcing services to small and medium enterprises. It offers boutique outsourcing solutions that allow companies to gain a competitive advantage in their respective industries.

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