| Like every business relationship, trust is the key | | | | points which score the most in this regard are: |
| for an outsourcing relationship to thrive and | | | | >Quality of services: Being at the charge of |
| prosper. A relationship of mutual trust and | | | | the things, it should be ensured by him to deliver |
| professional commitment always ensure a winning | | | | on the agreed standards of quality. He should |
| position for both the parties involved in the | | | | imbibe the best management practices and |
| outsource process. This element of trust become | | | | provide the most efficient staff to achieve this |
| all the more important in outsource of critical | | | | end. Also it should be ensured that the project is |
| business functions like accounting. The prospect of | | | | completed and delivered in the assigned time limit |
| big time savings and developing strategies for | | | | > Data Security: Data security is the most |
| growth is always alluring but then sensitivity of | | | | important concern clients have in mind while |
| data involved make it difficult for companies to | | | | outsourcing critical functions like accounting. The |
| take a decision on outsourcing. It is therefore | | | | vendors should ensure that they take adequate |
| needed that clients embarking on the outsourcing | | | | precautions in this regard to instill faith in the |
| route trust their vendors not only from the | | | | clients. Generally data security can be covered |
| genesis of the outsource accounting process but | | | | under these broad headsi) Data transfer security: |
| also during the process and after a project is | | | | Accounting outsourcing involves the transfer of |
| completed. And both the parties have role to play | | | | files that contain sensitive information. Vendors |
| in creating this environment of trust. | | | | should use the best technology available to ensure |
| This can be done by following steps mentioned as | | | | secure transfer of data. Use of secured servers |
| under: | | | | for the purpose eliminates the chances of data |
| 1)Selecting the outsource partner: Once decision | | | | loss.ii) Work station security: Proper measures at |
| about outsourcing accounting has been taken and | | | | the work stations like use of dual monitors that |
| actual process of screening various vendors has | | | | creates a paperless environment and thus |
| been done, due care should be taken in collecting | | | | transportability of vital data, limited internet |
| the references by the vendors .These references | | | | access to employees, no scope of using external |
| should be properly checked and their opinions | | | | drives, firewall protected network ensure that |
| about the respective vendors sought before | | | | data remain well inside the office or are not lost.iii) |
| making any conclusion about the prospective | | | | Employee Credibility: Employee credibility is the |
| outsourcing partner. This is the most important | | | | single most important issuethat if taken taken |
| part of the entire process as companies can, on | | | | care properly solves most of the data security |
| the strength of their own decision select the | | | | concern. It is |
| most suitable partner and move forward with an | | | | Vendors responsibility to ensure that capable |
| open mind. | | | | employees with proven track recordare deputed |
| 2) Signing of the contract: Giving contractual | | | | for an accounting assignment. |
| validity to the outsourcing process is the first step | | | | 4) After completion of the project: Once a |
| in instilling trust in a nascent relationship. Since the | | | | project is completed both the vendor and |
| documentation of contract lays the foundation of | | | | customer should evaluate their respective stands |
| an outsourcing process, optimum care should be | | | | on the entire process. They should discuss to |
| taken while drafting it. Issues that form the | | | | remove any bottlenecks that might have arisen in |
| skeleton of the entire procedure should be dealt | | | | the process and approaches that should be |
| with properly and in very clear terms. These are | | | | adopted to make the process smoother to work |
| >Minimum service levels. | | | | out. |
| >Ownership. | | | | Trust is the most important key of an |
| >Confidentiality of data. | | | | outsourcing relationship. However it is not possible |
| >Roles and Responsibility. | | | | that it develops overtime. The perception of trust |
| >Pricing. | | | | towards the entire outsourced accounting process |
| >Staff to be deputed, skill levels, hours of | | | | depends entirely on past experience. A good |
| work etc. | | | | experience leads to a burgeoning atmosphere of |
| >Exit Strategy. | | | | trust from whereon both the parties can really |
| The contract should be reviewed from time to | | | | look to benefit. While a bad experience can |
| time as the relationship grows and the partners | | | | entirely mar the process and lead to bad taste. |
| move forward. | | | | Although the onus of the success of the entire |
| 3) Implementing stage: At the point of | | | | process rests on the vendors shoulder, it is the |
| implementation, it is the vendor who has the | | | | responsibility of both to ensure a pragmatic |
| entire responsibility to ensure that the | | | | approach is adopted in making the process work |
| environment of trust which is the key to the | | | | out to the benefit of both. |
| success ofthe relationship is maintained. Two | | | | |