Posted by Angelica Garcia
Sep 11, 2023
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As we navigate through an ever-changing global economy, it becomes increasingly important to explore innovative solutions that promotes sustainability and positively impact our economy. One such solution gaining popularity in recent years is outsourcing.
Outsourcing is the process of contracting out specific duties or responsibilities to outside firms or people. This method enables firms to focus on their core strengths while leveraging the use of the expertise and cost-savings provided by a specialized service provider.
How does outsourcing promote sustainability?
1. Minimizing Paper Usage
A study reveals that 50% of business wastes is composed of paper. By digitizing finance processes, your business can reduce its paper use, resulting in substantial cost savings and environmental benefits.
However, some businesses still have traditional accounting processes like invoices and financial reporting that often involve significant paperwork. When you outsource these functions, your business can harness digital technologies and reduce its reliance on paper-based documentation.
2. Enhancing Resource Efficiency
Outsourcing enables your business to tap into the expertise and economies of scale offered by specialized service providers. These providers invest in cutting-edge technologies, such as cloud computing and automation, to streamline finance and accounting processes. As a result, your organization can achieve higher resource efficiency, reducing waste and optimizing resource allocation.
3. Supporting Local Economies
Outsourcing finance and accounting functions can also contribute to the sustainability of local economies. When you collaborate with outsourcing service providers, your business can create job opportunities in regions with a skilled workforce. By also leveraging this global talent, companies can tap into specialized skills and knowledge, resulting in improved decision-making, increased productivity and enhanced overall performance.
4. Fostering Business Continuity
Maintaining operational resilience is crucial for sustainability. Outsourcing finance and accounting functions can help your organizations establish business continuity plans. Service providers typically have backup systems and comprehensive disaster recovery protocols in place, ensuring uninterrupted service delivery.
Read: The New Normal: D&V Philippines' Business Continuity Plan
Economic Impact of Outsourcing
1. Cost Savings
One of the primary reasons for outsourcing is cost savings. By leveraging labor and resources from countries with lower costs of living, your business can significantly reduce operational expenses.
2. Creates jobs in other Countries
One of the significant economic impacts of outsourcing is the increasing number of job opportunities it creates. As a result, it reduces the percentage of unemployment rate and boosts the economic growth in a certain country.
3. Global Trade and Collaboration
Outsourcing encourages international cooperation and trade. When your organization outsources to other nations, you can develop economic relationships and foster collaborations. Through information exchange, the sharing of best practices and foreign direct investment, this international cooperation may help the global economy as a whole to expand.
Read Next: Accounting Outsourcing Services: Is this the Future?
4. Technological Breakthroughs and Innovation
Outsourcing can encourage technological breakthroughs and innovation. When your business outsources particular functions, your outsourced provider can introduce fresh concepts, methods and technology. Such innovation can boost productivity, efficiency and competitiveness, which can have a favorable knock-on effect on the economy.
The Bottom Line
CFOs can leverage outsourcing to enhance cost control, mitigate risks, and achieve scalability and flexibility in financial management.
By outsourcing certain functions such as finance and accounting, your organization not only benefits but also contributes to global sustainability and economic development.
If you need a finance and accounting outsourcing provider, consider reaching out to D&V Philippines. Let us handle your financial needs and provide you with reliable services. Schedule a free consultation with us today!
You can also download our whitepaper Outsourcing: How to Make it Work to know how we can be your ideal partner here in the Philippines.
