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How do you feel about onsite outsourcing of nonrevenue/adminstrative/support functions?

Roger Frederick's Profile

Answers

Topic Expert
Keith Perry
Title: Consulting CFO and Business Operations A..
Company: Growth Accelerator
(Consulting CFO and Business Operations Advisor, Growth Accelerator) |

Roger,

Pros: If you need less than a full person, or need a variety of partials, this can be an easy solution.
If you needs tend to change, it can be cost effective.
There is less employee risk with contractors.

Cons:
One person can often serve several roles, and bring knowledge from one role to another. An outsourced person typically won't do this.
Cost: right now the cost differential is muted due to the high unemployment rate. However, normally you'd expect to pay a premium for this.

And....onsite vs. offsite? I prefer onsite as I value the interactions. It costs a chair/cube/office, plus often requires a more fixed schedule. If the role is easily encapsulated, then I'm indifferent and don't mind having it offsite.

Topic Expert
Regis Quirin
Title: Director of Finance
Company: Gibney Anthony & Flaherty LLP
LinkedIn Profile
(Director of Finance, Gibney Anthony & Flaherty LLP) |

My opinion -There is no problem with outsourcing, onsite or off-site. It is a valuable approach to any business, until it makes economic sense to bring the service in-house. Identify your needs, find a vendor, establish a contract, and monitor adherence to the contract. Set a target, i.e. "If I begin to use this outside service for Accounting that equals $50,000/year, I should bring the resource in house." This last part is very important.

Barrett Peterson
Title: Senior Manager, Actg Stnds & Analysis
Company: TTX
(Senior Manager, Actg Stnds & Analysis, TTX) |

Oustourcing is always a tool you want to have available. Be wary of the "onsite" outsourced function looking/acting like an employee, which may be asserted by both the IRS and your Worker's compensation carrier, not to mention State unemployment departments.

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