More and more companies today are outsourcing certain aspects of their business, both domestically and abroad. Outsourcing increases efficiency and often reduces costs, so should your company consider doing the same? The answer is yes. Small companies usually outsource because they have no other choice. For example, they don’t have enough work to hire a full-time payroll department, but still need the job to be done. On the other hand, large companies generally outsource to save money. No matter your company’s motivation, there are many benefits to outsourcing, so read on to find out more.
The benefits of outsourcing
If your business is doing well, chances are that most of your employees are very busy. Outsourcing certain tasks can allow your staff to focus on the task at hand. Sure, they might be able to take on more work internally, but will their overall productivity suffer? It’s best to let your staff manage the things they know best and delegate other tasks to other workers. Perhaps your business only needs to outsource seasonally, say, during tax season. Don’t hesitate to outsource some of your accounting needs to contractors. Doing so will allow your own accounting department to keep focusing on what they do year round and not become overwhelmed during the stressful tax season. Also, new contracts or demands from clients might create the need for specialized labor. Instead of hiring new employees and creating physical office space for them to operate in, consider outsourcing the work to a firm that already specializes in that specific field. It can save your business money and won’t cause distractions for your staff.
Finally and most importantly, outsourcing can greatly reduce the risk of doing business. The providers of the outsourced work usually assume the risk, and they are specialized in their respective areas of expertise, so the risk is much less than if your company did the work in-house. Some companies might be hesitant to engage in hiring freelancers or contractors because it adds different regulations and business practices into the mix. Luckily, there are companies that specialize in handling outsourced labor so that your company doesn’t have to do a thing. These are called umbrella companies, and they help streamline operations for everyone involved.
What do umbrella companies do?
To put it simply, umbrella companies like www.crystalumbrella.com bring together workers and clients. They act as an employer for contractors or freelancers who work under temporary contracts, usually through an agency. The umbrella company handles the invoicing and payroll services for both parties, and provides a responsible and streamlined way for contractors to do business. After the UK’s introduction of IR35 legislation in 2000, many freelancers and contractors feared being prosecuted by the government for failing to comply with the new tax laws. Umbrella companies began to emerge shortly thereafter, providing accounting services for workers and their clients, which allowed businesses to maximize their income without fear of misreporting their taxable income. Good umbrella companies provide full Human Resource support and advise their clients on a wide range of business relations.