Companies are outsourcing their financial operations, here’s why it’s a good idea.
More and more companies are re-thinking their executive teams and outsourcing the financial aspect of their operations. In this modern age of dynamic and complex business markets replete with endless streams of new technology, automation and digitalisation, it is nearly impossible to stay abreast. Mounting operating expenses and inefficient labour in this financial climate are also not helping businesses achieve their envisaged growth. Addressing these challenges from an operational and strategic perspective should not be taken lightly and certainly requires expert input. Considering an outsourced option for the financial operations of your company can be suitably beneficial.
Handre Lourens, business rescue practitioner and consultant at Hobbs Sinclair says, “The question you have to ask yourself is, does your business merit a full-time financial manager or financial director, or are you best placed to outsource this crucial function?” The trend is with outsourcing, and here’s why.
Outsourcing
Outsourcing your financial function and operations brings the advantage of securing a practised professional tailored to the requirements of your business – when you need it, how you need it – without the burden of employing someone full-time at the high cost of a permanent, qualified professional.
Strategic decision-making and up-scaling
An outsourced financial go-to person will assist with business growth by managing your working capital cycle, cash flow, strategic decision-making and mitigation of risks, critical in the scale-up phase of any business.
Monitoring your business
Experts in financial management, with diversified skill-sets and knowledge, will implement systems to mitigate risk and devise management accounts to monitor your business. This will enable better strategic decisions for growing revenue and customer base, cutting costs while increasing productivity and efficiency.
Business plans
Growing your business requires financial backing. If you need bank finance to develop your business, a bank will be expecting an in-depth forecast and detailed business plan. Expert input in this regard is extremely valuable to your application.
Tax planning
If your business is booming and you have secured a sustainable market share, your customers are happy and your bottom line is smiling, the next phase of efficient tax planning is critical. Lourens suggests, “Before the taxman comes knocking on your door, get the experts in to ensure your tax planning is as efficient as possible and, most importantly, to make sure you have made sufficient cash flow provisions.”
The rewards
At the end of an era, when it’s time to sell your business, outsourced tax professionals will efficiently evaluate your business to ensure you receive the capital you deserve for all your hard work, sweat and tears.
Why South Africa Remians a BPO Destination of Choice
In 2007 South Africa was identified as one of the world’s upcoming Business Process Outsourcing (BPO) destinations of choice. Now, 12 years’ on, does this still ring true?Jacques de Beer, CEO of Talksure, an international contact centre located in Umhlanga, says, “South Africa has continually been recognised as a leading BPO destination and have received numerous international awards to prove it.”In fact, he adds that South Africa was named ‘Global Destination of the Year’ by the Global Sourcing Association, high praise for South Africa’s credibility within the industry. Furthermore, growing infrastructure, government incentives, cost competitiveness and first-class customer service, make for a booming South African Business Process Outsourcing (BPO) industry that is expected to grow even more over the next few years.De
Beer unpacks why South Africa remains top of the BPO pops:
1. Top talentFor years, the world has recognised that our workforce has the ability to deliver first class service to off-shore clients. This fact has not changed. Specifically, South African agents have an ability to develop greater empathy with customers than those in other offshore locations and are naturally skilled in handling complex calls and negotiations.According to an analysis report by Business Process Enabling South Africa (BPESA), global businesses like Amazon are ramping up its customer service from South Africa and is recruiting ‘free-thinking’ agents. They are unscripted, which is typical of South African contact centre services, and are authorised to take whatever action they feel is appropriate to solve the customer’s problem. These are critical skills in ensuring high-quality customer service and revenue generation.
2. Neutral accentEnglish native speaking markets such as the UK, Australia, and the USA continue to account for the majority of South Africa’s offshore market. The fact that South African agents have a cultural affinity with these countries and coupled with a neutral English accent, makes South Africa a perfect offshore BPO choice. Interestingly, Germany and French-speaking agents are also increasing in South Africa.
3. Cost-effectiveWith a favourable exchange rate, South Africa currently ranks as the 3rd largest offshore location for UK and Australian companies who experience significant cost-savings of up to 70% compared to onshore service delivery. Business costs are under increasing scrutiny and lower costs are attractive, especially with a comparable (or better) quality of service.
4. Skills DevelopmentFor the high number of young, job-hungry individuals, South Africa’s government-supported BPO industry provides low-barrier entry to employment. The 2016 BPESA Key Indicator Report revealed that the BPO sector had created 222 500 jobs at the time.Even more encouraging is the fact that the industry is being recognised for its growth and job-creation potential. As a result, South Africa’s Department of Trade and Industry (DTI) provides an incentive scheme, enabling sales and broker training and employment of agent.
5. First-World ExperienceThe global contact centre standard (ISO 18295) was led by and is based on South African standards. South Africa is a prime business destination with international airports, located in its leading BPO cities Cape Town, Durban and Johannesburg, that provide direct international flights. Modern transportation networks, sophisticated telecommunications, and internationally recognised tourism attractions have also positioned it as a prime business destination.“
The truth is that South Africa’s value proposition has not changed much since 2007 with one major difference – it is no long up and coming – it is the world leader!” de Beer concludes.
