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

Roger Frederick's Profile


Topic Expert
Keith Perry
Title: Director of Global Accounting
Company: Agrinos, Inc.
(Director of Global Accounting, Agrinos, Inc.) |


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.

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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