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The Warsaw Voice » Business » March 18, 2009
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Outsourcing-Cut Your Costs
March 18, 2009   
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Businesses have for years outsourced their basic processes, mainly those associated with administration and general management. In Poland, there has been a strong trend toward outsourcing thanks to the country's highly qualified labor force and competitive wages. Additionally, personal computers and the development of the internet have helped integrate IT systems between outsourcers and customers, regardless of the distance.

With the global economic crisis biting increasingly hard, many businesses are beginning to look for ways to make even deeper cuts in costs. On the other hand, outsourcing companies, as they operate on an increasingly competitive market, are trying to meet their customers' expectations by flexibly adjusting the form and scope of their services to the customers' needs and preferences.

Outsourcing is a long-term activity that creates a totally different kind of relationship between businesses-one based on partnership and a win-win situation for both parties.

The most frequently outsourced services include accounting, human resources, and payroll management. A customer outsourcing accounting is provided with bookkeeping services complete with handling formalities with the internal revenue service and the Central Statistical Office. In the case of payroll services, the outsourcer calculates wages and draws up a payroll in line with contracts signed with the employees, taking into account their basic wages, bonuses of any kind, deductions, allowances, and contributions to the Social Insurance Institution (ZUS) and the internal revenue service. A customer who has outsourced human resources management is offered services including handling all documents and procedures involved in hiring and dismissing employees, accounting for vacations and handling all current issues between the employer and employee.

The most important benefits of outsourcing are as follows:

1) Savings-Businesses that outsource their processes save on wage- and social insurance-related costs and on infrastructure expenses. No less important is a reduction in spending on human capital. These businesses do not incur expenses associated with additional training.

2) Higher service quality-The businesses have access to services provided by experts in a given field-people who have years of experience, are highly professional, and rely on the expertise gathered by the outsourcing company and consultants who work with the outsourcer on a regular basis. These people are up to date with all legislative changes that have a direct or indirect impact on the business environment in which the customer operates.

3) Greater flexibility and cost control-The outsourcer works under a contract with fixed rules and with expenditures fully under control. The customers can rely on the services being stable and provided without disruptions. They do not need to worry about vacations, accidents and other factors that could reduce productivity.

4) Lower risk-The outsourcer assumes responsibility for any errors in account books.

5) Customers can focus on their core business, which is the main source of their revenue, while the outsourcer's specialists take care of every detail and help the customer save time, which is so valuable in business. The customer's involvement is reduced to the minimum. They receive regular reports on current business and usually meet with the outsourcer's staff once a month for consultation and to transfer documents.

Wojciech Kossut, Chairman of Towston Accounting Services Sp. z o.o.
www.towston.com
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