| Since the 1980's, corporations have used the | | | | Are their negatives to this? |
| process of subcontracting to third parties and this | | | | Yes, there are negatives to this sort of business. |
| service has increased dramatically across the | | | | From quality risk and service to productivity, staff |
| borders of the United States. This process is | | | | turnover and public opinion there can be many |
| called outsourcing, and is considered to be a hot | | | | drawbacks from this sort of third-party |
| topic during election years. Of course it is | | | | subcontracting. From a labor standpoint this could |
| important to know that not all companies who | | | | represent a threat and reflect, in general, the |
| outsource specific tasks are sending them to | | | | process of globalization. |
| foreign countries. There are some businesses that | | | | Do the benefits outweigh the negatives? |
| maintain a home office in one city while at the | | | | Yes, for example, outsource accounting for some |
| same time going into contract with another | | | | companies is key to their long time survival. No |
| company where commercial real estate costs | | | | longer does a company, large or small, need to |
| less, which in the long run lowers overhead costs. | | | | physically and financially staff an accountant, or |
| What are the benefits of Outsourcing? | | | | team of accountants. Although accounting is an |
| The main reason most companies follow this path | | | | important function it is rarely the core function. |
| is to lower their overall cost of particular services | | | | These accounting process companies have the |
| within their business. Through this process the | | | | manpower and can do the job at a lower cost. |
| company can focus more on the core of their | | | | With small businesses, the owner/entrepreneur |
| business and at the same time achieve quality | | | | has to wear many hats regularly. With the pace |
| through a company that specializes in their specific | | | | of business having become quicker and more |
| service. In some cases, there are businesses who | | | | precise, using alternatives such as outsourcing |
| wish to outsource specific work to make the | | | | accounting help is imperative to the long-term |
| most of their work and leisure life. | | | | viability, visibility, and growth the company. |