There has been much criticism of outsourcing to offshore destinations. Many of these criticisms are based on inaccurate information and assumptions. Let’s debunk a few – just for fun.
Myth #1: The outsourcing country loses jobs
Reality: Outsourcing provides opportunities for skilled workers in the outsourcing country to utilise their skills and knowledge in other ways.
A significant portion of time is spent by highly skilled accountants on repetitive processing of compliance work. This takes time away from the accountants and prevents them spending time on higher end, value adding work. In many parts of Australia, the pool of qualified experienced accountants is limited, so having the processing performed offshore frees up time for value-adding services, something that is often overlooked by small accounting practices due to time and budget constraints.
In situations where increasing workload doesn’t warrant another fulltime staff member, adding a part-time offshore staff member can provide the solution and flexibility that is unattainable here.
Myth #2: Outsourcing needs complex IT integration
Reality: It’s a misconception among small business that outsourcing requires extensive IT integration. For management of an outsourced portfolio, internet connectivity and email are the only requirements. The technology is provided by the outsourcing provider.
A secure bulk data transfer system, such as LockBox™, can be used, so all that is required is an Internet connection: the data requiring processing is uploaded, and the final product downloaded securely.
Alternatively, where specific formats of files require entry into the client’s software, the service provider can use a Remote Server to access the client’s computer securely to perform services. Remote server access can be securely limited to the areas where access is required.
Myth #3: Outsourcing is out of our control
Reality: Outsourced accounting services are performed under strict supervision. Depending on the particular contract with the service provider, jobs can be performed on a per-job basis or by dedicated employees. Either way, the service provider will always ensure that the work is performed to the standard and timeframe expected. When the work is complete, the final product is delivered to the client and the documents and data initially provided can be securely destroyed.
Myth #4: Outsourcing divulges key client information
Reality: Reputable outsource service providers value their own reputation as much as you value yours, so they will do everything possible to minimise risk to data.
No business owner would risk his business possibilities by unauthorised use of data of the outsourcing company. Through secure FTP software, offshore units transfer all the documents securely into the client server. Using customer specified software, they perform the work and export the finished files back in to customer’s server securely. The customers will import the files into their software. There is no possibility of any breach of data security.