Outsourcing vs In-House Solutions

There has been a lot of recent talk denoting the amount of time spent by companies on processes that are killing profits and could otherwise be outsourced to an external party. It is argued that outsourcing would free up internal resources to spend more time focusing on the purpose of the business itself.

For some companies the effort and cost of outsourcing often seems much larger than it actually is. This incorrect notion is often due to a lack of awareness in both how easy it is to engage a specialised company in the tasks required, and how much is eases a certain portion of the HR department’s administration workload, allowing staff to focus on other, and more business-advancing aspects.

Lots of the contractor management functions considered to be draining to a company’s productivity and costs include expense processing, timesheet management and payroll, insurance and superannuation assurance. This is as well as adequate contractor management systems put in place, which could also involve software management and maintenance.

Here are some tips on how to tell if outsourcing these back office functions would be useful:

• The company is spending time and money training internal staff on areas outside their immediate expertise or capabilities
• Staff are finding it challenging to pull comprehensive reports on all contractors of the business
• The true costs on the business of hiring contractors is unknown, or uncertain and with low visibility at best
• The company is undergoing, or has recently undergone, rapid growth or reduction in size
• The time estimated it would take to get these things in order is deemed too large by the business at this stage to carry out and implement.

Introducing in house technology vs Outsourcing contractor payroll management

In order to effectively and compliantly manage contractors, whether it’s as a recruitment agency or an employer of contractors, it is necessary to have an effective management system in place. Such a system is important toensure consistency across all contractors, reporting and cost functions, as well as making sure everything is compliant.

The difference between a company introducing its own in house technology to manage these contractors or payroll services and choosing to outsource their contractor management is large, each choice having different effects on the company. It is important to first understandwhether a company is capable to adequately and efficiently implement a new technology into the business functions.

Implementing these solutions in house requires an internal expert on the ins and outs of the software. This means a dedicated staff member is required to spend time becoming acquainted with all the functions in order to readily teach and guide other staff in using it. This is often a pricey option that can be very disruptive to the day-to-day workflow.

Outsourcing these back office functions to a service that utilises its own established technology and software is a much more time efficient option. This is because the company is its own technology champion, already knowing the inner workings and best ways to get things done, as well as having the functionality of continually upgrading and improving the software. This negates the need for anyone internal to the company to fill that role, rather simply focusing on their existing role.

Not only that, when you utilise contractor management services, through Oncore you only pay for the outsource system when you have contractors billing in the market and making you money. You are not charged a setup fee or for the non-utilised capacity of when contractors are not working.

The other large benefit in contractor salary packaging & management is that the company in need is not only gaining a ready-made software solution, but also gaining people doing the work who are dedicated experts in their field. Having experts at their disposal is a more efficient option for companies wanting to quickly and easily implement an effective payroll systems.

Oncore is a global outsourcing company specialising in contractor contractor management system, risk mitigation and payroll providers Australia for corporates, recruiters and professional contractors.