Choose the right outsourcing for your business
Outsourcing can be defined as total or partial outsourcing of the management of a company’s IT equipment.
An essential element that ensures the smooth running of the business, the outsourcing system is offered to business leaders to provide a solution to management problems.
What is outsourcing?
Management toolset up to facilitate the daily life of a company, outsourcing is presented as an outsourcing of the transmission of the operational conditions of its IT system. Whether partial or total, it is very beneficial for VSEs.
Outsourcing consists of reaching a good position of expertise by putting the governance of the IT system in the hands of a professional.
The latter offers sound advice, essential to improving your computer system.
In addition, there is no single payment solution that would work for all businesses. Each of them has its own requirements. This solution depends on the degree of “control” she wishes to have over payroll management.
Thus, with outsourcing, companies have the choice of completely outsourcing their payroll to optimize their operation, or partially outsourcing some tasks to be able to control financial matters and confidentiality aspects. If you want to know more about business management, consult the Gataka website.
Partial outsourcing, also called “outsourcing of tasks”, consists of entrusting the execution of part of the specific tasks and services to a service provider. The latter will only be responsible for carrying out specific tasks. It does not deal with sub-ranges of services such as logistics, transport services.
As a result, this outsourcing leads to a significant increase in productivity, as well as the possibility of being able to quickly change outsourcing partners in the event of service problems.
In the case of payroll management, the payroll service provider will only act as an extension of the company’s internal payroll team, helping in particular to perform specific tasks related to pay. However, the integration of internal and outsourced steps is entrusted to the staff of the company responsible for payroll.
The downside of this outsourcing is that it is an uncoordinated approach. Indeed, two very distinct establishments work on the constituent tasks of payroll. In addition, since the main tasks, in particular, the dispatch of payments and the integration of outsourced steps still belong to the company, the risk of non-completion of the tasks within the required deadlines is very high.
The cost of partial payroll outsourcing may be higher depending on the supplier. Indeed, the company still has to invest in its own (internal) pay systems and in its staff.
This is also known as ‘ complete outsourcing ‘. The significance of full outsourcing lies in the fact that a large part of a company’s activity, for example, logistics, is transferred to another company or to another service provider.
In this case, the external service provider takes care of personnel, hardware and software as well as the contractual obligations of the company.
Here are some typical aspects of total outsourcing:
- Preparation and negotiation require a lot of resources: time and money.
- It is a long-term affair.
- Strong dependence on business partners in good and bad times will be observed
- It requires a great understanding of the needs of your business partner.
- If you have concluded this type of outsourcing, it may fail only in the event of a fundamental breach of the contract. If all goes well, the two companies ensure better collaboration over the long term.
If it is a question of assigning tasks relating to wages, complete outsourcing of wages means that the supplier assumes responsibility for all stages of the payroll process, as well as software, technological tools, expertise in payroll and personnel. The purpose of this complete outsourcing is to meet all of a company’s payroll requirements.
The service provider is also responsible for the accuracy and speed of salary processing, as well as for sending payments for salaries. In other words, the company that opts for total outsourcing of payroll outsourcing services may no longer need internal staff for said payroll.
It is emphasized all the same with the exception of the main contact who will serve as the liaison between the company and the payroll service provider. This will reduce internal staff costs.
The idea in which the service provider is responsible for carrying out each stage of salary processing has advantages and disadvantages. It is beneficial in the sense that the company will not have to worry about calculations, compliance and meeting deadlines.
However, it presents itself as a source of concern for certain companies. Indeed, they fear that this outsourcing could cause a loss of control of the payment process. However, this case may not arise. A better payroll service provider should establish close collaboration with the company.
It takes the role of a partner to implement payroll services, recommend and ensure best practices while allowing the company to maintain control.