Managing a business can be difficult but expanding it to an international scale or even just growing it in size brings new and unique challenges. On top of that, business owners must guarantee that their operations run smoothly, customers are satisfied, and profits rise. Alternatively, ensuring full compliance across various regions, while simultaneously managing a productive and problem-free and cost-effective back office, is a different subject to address. How does one maintain the perfect balance without being overwhelmed and investing too many resources?
Outsourcing can help your business stay on track
Many companies have resorted to outsourcing as an initial strategy. It provides an opportunity to transfer planned or current business tasks to another organisation. An example is outsourcing payroll services; this would involve bringing another company to handle payroll calculations, tax deductions, and other related paperwork, as per applicable regulations. Although many companies have the opportunity to do it by themselves, outsourcing to a third party can help reduce costs of labour, technology, licences, and reduce the chances of paperwork issues, non-compliance or data security problems.
Outsourcing usually operates on a fee-for-service basis, where the supplier provides specific tasks or duties based on a specific request, rather than taking a comprehensive and proactive approach. Despite this, the benefits it offers to companies cannot be overstated; in many cases, it is exactly what a business needs. When you manage a world-wide business or require a deeper understanding, a little something extra may be needed. That’s when the managed service model comes into play.
Managed Service Provider: a proactive partner with strategic opportunities
This approach to service delivery puts the customer first, with a managed service provider (or MSP) aiming to understand their needs and processes in detail. By filling in any gaps of effectiveness and finding ways to reduce costs while maintaining quality, the MSP sets customer satisfaction as the primary goal. Innovative solutions are suggested and implemented to replace outdated processes.
The MSP isn’t your typical third-party vendor service that works on only certain areas – it’s more like a partner of the company. With this type of managed service, ranging from payroll to accounting to advisory support, the main advantage is that the client gets a unique, tailored solution alongside other benefits.
Some of the most popular services provided by managed service providers include centralized account control, access to the newest technology, and a strategy tailored to meet the clients’ needs. With a global reach, these providers are able to assist clients with expanding their businesses to any location, while maintaining one single point of contact, but also providing the most knowledgeable experts local to each area. To find out more about the benefits of managed services, visit our dedicated article.
Outsourcing or managed services: What to choose?
Do you wonder which is better for your business: outsourcing the basic elements of your back office and other areas, or working with a managed service provider? Both of these approaches can be cost-effective, provide cutting-edge knowledge, technology, and creativity, as well as cutting down a lot of potential risks. However, when deciding on which one to go with, it is beneficial to consider the main distinction between the two: outsourcing is reactive, while managed service providers are proactive. The correct one to choose depends on the individual circumstances of the organization in question.
If you need to free up your company from administrative duties and reassign that responsibility so that your business can focus on its core objectives, outsourcing is the way to go. It is suitable for businesses of any size, from small and medium enterprises to major international corporations.
If your needs are sophisticated, your goals involve worldwide growth, or you need a plan with a strong direction, then a managed service provider is ideal. What makes them different is their ability to both provide advice and take responsibility for successful outcomes and streamlined performance. Having a SPOC to manage and oversee multiple vendors regardless of their location simplifies the process of running an international business or complex projects.
Accace Circle has extensive experience with the two approaches both on domestic and international level. Our team is ready to discuss with you what is the optimal course of action for your company, depending on your requirements. Furthermore, we will happily help you figure out how to elevate the quality of your payroll, HR and accounting systems, or present the most suitable alternatives for you regarding taxes or legal matters, using the skill of our members across the whole globe.