Outsourcing

The principle

The basic principle of outsourcing is to subcontract activities, especially administrative tasks, to a company specializing in such services. The goal of outsourcing is to relieve the client of the stress of activities that might, as important and imperative as they are, however prove to be a drag on growth. These activities require ongoing attention, sometimes skills the client doesn’t have, and quite often those tasks do not generate any profit.Impartition

In regards to Abak customers, outsourcing is the ideal solution for:

  • Small businesses: very often those companies consider subcontracting as an opportunity to minimize administrative tasks and to enable them to concentrate on lucrative actions. In addition, it also happens that these organizations do not have in their staff the resources with the required skills to perform those administrative and financial tasks.
  • Medium-sized enterprises: they sometimes face a situation that will temporarily mobilise a large portion of their workforce (getting a major contract for example). Hiring additional staff being not necessarily justified, companies will move towards outsourcing services.

Earnings

Why use outsourcing services?

Here are a few examples of benefits generated by outsourcing:

  • Free the organisation from non-profitable and repetitive activities,
  • Allow client to focus on strategic activities,
  • Work of better quality carried out by specialists,
  • Reduce cost of salaries,
  • Reallocation of resources to key activities,
  • Competitiveness improvement by focusing staff efforts on strategic activities,
  • Limit investment in new resources.

Risks

A coin has two sides. It is therefore necessary to consider the risks of outsourcing:

  • There might be hidden costs. This is why it’s important, when subscribing, to list the required services and to know their costs.
  • Depending on the volume of assigned work, the client might become dependent on his supplier and then progressively lose control of his schedule. The latest being dependant on the delivery of services from the outsourcing firm.
  • Some companies improvise themselves as providers of outsourcing services. Poor quality of work can be the result, requiring a careful monitoring. In such circumstances all the benefits of outsourcing are lost in monitoring activities.
  • Reputation: the risk of delivering a work of poor quality performed by an outsourcing service can spoil the reputation of the company.
  • Control – having to continuously control the work of the outsourcing service monopolizes valuable time.
  • Very often, the client shares confidential information with the outsourcing firm. Controlling this information is then essential.
  • Mistakes. The outsourcing firm can make mistakes and consequences might vary depending on the gravity of the mistake(s).

Preliminary Selections

Here are some advices for selecting an outsourcing firm:

  • The potential provider needs a good reputation and must be recognized as a specialist,
  • The outsourcing firm must have a proven financial stability,
  • References: do not hesitate to ask and check the references of the potential providers,
  • Sign a confidentiality agreement,
  • Begin outsourcing services through a probationary period,
  • Sign a contract that lists the range of services and exclusions, as well as the applicable rates and terms conditions of billing and payment,
  • Ideally agree on a fixed monthly cost.

Abak Software Inc. proposes outsourcing services which are related to the functionalities of Abak Software:

  • Creation of projects in Abak
  • Billing
  • Management of work in progress
  • Reports
  • Project follow-up
  • Budget management
  • Time Banks Management
  • Validation of expense accounts

Do not hesitate to contact us for more information.