Outsourcing finances to accountants Portsmouth is an extremely popular trend that helps companies maintain a competitive edge by avoiding certain cost on non-core activities and outsourcing can help small or mid-sized companies level the playing field with larger companies. As outsourcing continues to grow and formalize, the trends within the industry are continuously changing. It’s important to understand the direction of trends as a business owner in order to properly understand the present and the future of outsourcing.
1. It’s not primarily about cost
Outsourcing to an accountant in southampton has traditionally been about taking advantage of the low-cost labour in emerging nations. However, although the cost-effectiveness of outsourcing is still a primary reason for companies to outsource the reasons to outsource and sometimes offshore has grown. The competitive agility, scalability, and innovation are key reasons that outsourcing is no longer focused primarily on the cost saving but rather the competitive edge offered by outsourcing providers.
2. ‘Near Shoring’
Outsourcing has become intertwined with the idea of off-shoring; conversely, businesses are focusing more and more on closer outsourcing. As mentioned above, the cost-saving on labour cost is a big incentive, but in today’s competitive market it’s more about quality over quantity. A lot of off-shoring companies and emerging nations are seeing a relatively large drop as more businesses search for high-skilled labour solutions near-shore so that they don’t have to sacrifice talent for price.
3. Outsourcing is Expanding with Mid-Sized Companies
The amount of mid-sized companies utilizing the benefits of outsourcing to an accountant Basingstoke has continuously increased in recent years because mid-sized companies can benefit from the access to effective global companies. A staggering 73% of mid-sized businesses reported that they plan on expanding their outsourcing over the next 1-2 years, up from 55% from the year before. On the other hand, among large-companies 41% answered that they planned on using outsourcing over the next 1-2 years, down from 52%.
4. Outsourcing Structure and Process is More Standardized
Since the turn of the 21st century and the rapid growth of the Internet, both organizations and individuals have made it their goal to transform and formalize the outsourcing business. As the industry continues to grow this trend will improve consistency, reliability, and security. This growing trend indicates the positive growth for the outsourcing industry and reflects the success for both providers and clients.