November 30 2016.



Outsourcing means contracting out one or more of your business functions to another company, often referred to as a third party.

Companies of all types and sizes use outsourcing. Some because they prefer to concentrate purely on their core activity, others to save money. A local vehicle repair centre, for example, may outsource its bookkeeping function as its business grows. It may find its simple spreadsheet, which was fine for recording day-to-day receipts and invoices, is now too cumbersome and time-consuming to maintain as the finances grow more complex. In this scenario, the cost of a third party’s services is outweighed by the time freed up to do fee-earning work.

So, what opportunities and risks does outsourcing present? Here are the top five of each.

Outsourcing – the opportunities
You’ll save costs. Outsourcing can cost far less than employing an expert, not to mention setting up a whole new department.


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