The Benefits of Outsourcing for ‘The Next Normal’
In recent times, the Malaysian economy rebounded from unprecedented challenges, hitting its lowest point in two decades during the second quarter of 2020.
The arrival of the COVID-19 pandemic shook the global economic landscape, leaving businesses grappling with unforeseen disruptions and uncertainties. As nations initiated lockdowns, travel restrictions, and safety measures, the business world was forced into uncharted territory. In Malaysia, as elsewhere, the pandemic’s impact rippled through industries, challenging established norms and demanding innovative solutions.
While the road ahead remains uncertain, there’s a growing need for businesses to adapt to what we now refer to as “the next normal.” This transition is not merely about weathering the storm but about seizing opportunities amidst the chaos. It’s about businesses becoming agile, resilient, and forward-thinking to thrive in an ever-evolving environment.
Forward-thinking SMEs have been quick to embrace digital transformation as a lifeline during these trying times. Not only has this helped ensure business continuity, but it has also opened the door to a world of advantages offered by outsourcing services.
Let’s delve deeper into how the dynamic duo of digital transformation and business outsourcing services drive economic recovery in the post-COVID era.
Pandemic resilience through digital transformation and outsourcing
The COVID-19 pandemic has been a game-changer for digital transformation in Malaysia. A small business survey by global professional accounting organisation CPA Australia found that 40% of surveyed small businesses in Malaysia increased their focus to online sales in 2020. Of those small businesses that invested in technology in 2020, 42.4% of them said it made their business more profitable.
For global companies, the digital transformation has happened in the space of just months during the pandemic. According to Twilio CEO, Jeff Lawson, some large multinational corporations have fast-tracked their digital transformation by an average of six years.
The increased speed of digital transformation has meant that more companies have been able to appreciate the benefits of outsourcing. This has been particularly important for maintaining business continuity during the pandemic.
For example, pre-COVID, some companies had payroll systems requiring on-site staff to process payroll. However, when the Movement Control Order (MCO) was in place, payroll staff couldn’t get to their offices to perform their duties. The solution for many of these companies was to outsource payroll to an expert service provider that uses a cloud-based HRMS solution to process employees salary payment offsite, even in the middle of a pandemic. One of the added benefits of outsourcing payroll is that businesses can remain compliant with rapidly changing payroll regulations in Malaysia.
While the pandemic has fast-tracked digital transformation, it will remain an important driver of business growth for the foreseeable future. SMEs may find it difficult to keep up with the rapid pace of technological change, but this is where outsourcing can be truly valuable. By outsourcing their non-core business functions to a specialist outsourcing company, SMEs can:
- save money from not having to implement and maintain expensive technology;
- have greater business continuity when the unexpected happens; and
- increase operational efficiency by allowing staff to focus on core strategic business drivers.
How your company can reap the benefits of outsourcing
Here are the top three ways your company could benefit from outsourcing:
Focus on strategic planning to stay competitive
As Malaysia’s economy gradually recovers from the impacts of COVID-19, businesses need to focus on strategic planning to stay competitive. A good place to start is understanding the current financial health of your company.
Outsourcing your accounting function can help to clarify your company’s financial health status. A complete picture of your company’s finances enables you to make more informed decisions as the economy begins to recover.
Our team of professional chartered accountants at BoardRoom can help by painting a clearer picture of your company’s current cash flow and seasonality. They have the expertise to critically analyse your receivables and collections, so you can more effectively assess organisational performance. With this information, you can then make the best strategic decisions to stay competitive and position your business to thrive in ‘the next normal’.
Futureproof your business by outsourcing to a trusted outsourcing corporate services provider
Looking ahead, futureproofing your business is paramount. Outsourcing services can help your company stay resilient in the face of uncertain and challenging market conditions.
As one of the leading professional services outsourcing companies in the Asia Pacific region, BoardRoom offers a variety of comprehensive and value-added corporate services, including:
- payroll services – we make payroll management faster and simpler, and help your stay compliant with all the payroll regulations and requirements in Malaysia
- accounting and bookkeeping – our team of certified chartered accountants and finance professionals ensure your company maintains accurate financial records and in full accordance with the relevant regulations
- corporate secretarial – you will be assigned a dedicated corporate secretary that helps your business to meet all corporate regulatory requirements in Malaysia and across APAC, and minimize administrative burdens from corporate compliance tasks
- tax advisory and filing – leverage our tax-planning expertise maximise your return, and mitigate the potential financial penalties
- share registry – we take a customised approach to support your specific needs, including conducting shareholder meetings and ensuring proper maintenance of shareholder records in accordance with local statutory obligations
- IPO share issuing and registration house – as one of only two licensed share issuing houses in Malaysia, we have decades of experience to guide you through your Initial Public Offering (IPO) process
- employee stock options plans – we offer a comprehensive platform that streamlines all your ESOP processes that benefits both your employees and the organisation
By consolidating all your back-office functions into one vendor, you gain greater efficiencies and business productivity.
Speak to our team of experts today about how we can help to futureproof your business and help your business embrace the opportunities presented by “the next normal.” In this ever-changing business landscape, embracing the advantages of outsourcing and digital transformation becomes not just a strategic choice but a necessity for success.
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