Some years prior to today, the companies used to be set up at locations that are easily accessible to both raw materials as well as the potentials workers and employees were easily available. Nowadays, businesses can be set up anywhere, and this has been possible due to technologies such as easier and faster transportation and access to the internet.
The United Arab Emirates has become a breeding ground for upcoming businesses, and the above-mentioned reasons are applicable here. One more reason for this to happen is that the government of the UAE is now more focused on generating another source of income for the economy, which is not dependent on the Oil and Hydrocarbon sector.
With the increasing number of businesses, there is a demand for more and more services such as Accounting Services, Auditing Services, Payroll Services, etc. Not all businesses can hire a full-time Accountant or an Auditor, and this is where Outsourcing services come into play.
Let us know more about outsourcing services and how they can help your business.
What are Outsourcing Services, and Why Do Companies Do it?
Outsourcing can be defined as the service in which the business hires a third party to perform certain services which generally are performed in-house. These services are conventionally performed by the employees of the company, but in outsourcing these services are given out to a third party that may or may not have any connection to the business.
These services usually include business functions that are repetitive and time taking but also require a great deal of expertise such as Accounting outsourcing, Auditing outsourcing, Payroll outsourcing etc. This outsourcing service is usually taken up by companies that are looking to minimise the costs of the business and also save the resources and time of the company. the second reason due to which a company avails outsourcing services is to properly focus on the core services and not be distracted by the business functions.
Reasons to outsource the Business Functions
Below are the reasons due to which businesses tend to avail of Outsourcing services. These reasons are:
- Minimise the Total Costs incurred by the Business
Outsourcing allows lowering the expenses incurred by the business, which will also affect the total revenue of the company. this is one of the biggest reasons to avail the services of an Outsourcing Agency or Firm.
- Free up the Internal Resources of the Business
Many a time, the important resources of a company are used up while performing these tasks, and the business is unable to use them for other uses. This problem is addressed by outsourcing a particular business function such as Accounting Services, Auditing Services, Payroll Services etc.
- Saves the Time of the Company
These processes are repetitive and use up a lot of time for the company. Outsourcing business functions can assist the business in freeing up time and focus on the important functions of the business.
- Allows to Tap an Enhanced Knowledge Base
The third party to which all the functions are outsourced is more knowledgeable and can assist the business by providing new and better solutions to the issues of the business.
- Helps in Making Decisions for the Future of the Company
With the enhanced knowledge, the management of the business will be able to receive better and detailed reports of the company financials. This will allow for better decision making on the part of the management after the analysis of these reports.
- Allow for Assistance during Expansion
The third party to which the business functions are outsourced can assist the management in the expansion of the business. This can either be expanded to a new market or the expansion of the product line or services. The management can take the assistance of the knowledge they possess to make the expansion process simpler.
Thus it is recommended that the business should avail the outsourcing services from a reputed and professional firm which will take into consideration all the requirements of the business and address the issues accordingly. If you are looking to outsource the Accounting, Auditing or Bookkeeping service, then you can have a call with our experts at JAXA Chartered Accountants.
JAXA is a reputed Chartered Accounting firm in the UAE, and it strives to provide quality services to all its clients. To know more about the various services provided by JAXA Chartered Accounts, feel free to Contact Us. We will be glad to assist you on your business journey.