In a situation of instability, you need an uninterrupted back-office more than ever.
We will start with a generally accepted axiom: a business that doesn’t change is doomed to extinction. The impulse to evolution can be the owner’s foresight, the crisis (global or local-does not matter), and circumstances like the coronavirus pandemic, which was announced by the World Health Organization before.
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When these “black swans” intersect at a single point or, for example, in a country, the flexibility of the owner (CEO) and his/her ability to rebuild processes become the first item on the management agenda.
Outsourcing during the crisis
We are convinced that we are at this negative point. Point of bifurcation, as scientists say.
We are already drawing a sketch of the global financial crisis, caused, among other things, by the decline in the growth rate of the Chinese economy, and the coronavirus pandemic really affects the degree of business activity.
However, modern technology provides entrepreneurs with the tools to survive in this difficult time. One of them is the outsourcing of the company’s support services that do not bring direct income to the company: the Legal Department, Finance Department, accounting and Human Resources Department, and others.
Here it is appropriate to ask the question: “How exactly can the introduction of a remote back-office help businesses overcome the crisis?”
First, outsourcing stands out favorably against the traditional approach to back-office by its continuity. Schematically, a lawyer never goes on vacation, and an accountant does not quit in the middle of an extraordinary tax audit. In addition, you forget about situations when your highly qualified employee is poached by competitors. In fact, this is a win-win situation: the outsourcer fully meets the needs of non-profitable business units, and the owner has time for strategic planning, business development, and creativity.
The fact that the owner has time to create and implement ideas is the second advantage of outsourcing
Despite the fact that a lot of countries in the rating of Doing Business has risen, the owners still spend a significant part of his always absent time on routine work with documentation and interaction with regulatory, fiscal and law enforcement agencies. The more documents you have, the less time you have to develop your business. Outsourcing takes this work on itself and creates a space for the owner to do what is really worth doing.
A remote back-office is a synonym for fully understanding what a businessman is paying for. For example, the company employs two accountants who process 200 transactions daily. Fortunately, things are going well, and the number of transactions has increased to 250. By hiring a third specialist, we get a new employee with a partial load, and this is an unreasonable cost. At the same time, outsourcing involves a fixed fee for one operation. And you are no longer concerned about bonuses, inspections of the civil service on labor issues and office maintenance.
By the way, about the office
The situation with the virus forces organizers not only to cancel major events but also makes owners/shareholders think about transferring employees to a remote mode, which they are not used to. This has already been stated, for example, by major players in the World’s legal business. At the same time, working from a distance is a familiar process for outsourcers: their absence from the office does not affect the efficiency and performance of tasks.
The sum of all the above advantages increases the efficiency and profitability of the enterprise. This, in turn, significantly increases its chances to survive the negative economic and social conditions and recover quickly.
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