The Benefits of Outsourcing for ‘The Next Normal’
The Malaysian economy recently rebounded from its lowest point in twenty years during the second quarter of 2020. However, growth forecasts for the remainder of this financial year are not looking as favourable.
In mid-August, the central bank downgraded its growth forecasts for 2021. Now, as COVID-19 vaccinations are increasing and the country gradually reopens, businesses in Malaysia are looking for ways to adapt to ‘the next normal’.
Embracing digital transformation is one way that forward-thinking SMEs have already adapted. As well as boosting business continuity, this has allowed them to enjoy the significant benefits offered by outsourcing non-core functions.
Let’s take a deeper look into how digital transformation and outsourcing have become major players in the economic recovery drive from COVID-19.
Pandemic resilience through digital transformation and outsourcing
COVID-19 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. But 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 provider using a cloud-based HRMS, to ensure their employees were paid on time, even in the middle of a pandemic.
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 could benefit from outsourcing
Here are the top three ways your company could benefit from outsourcing:
01 Save money
Outsourcing business processes to a professional services provider like BoardRoom improves your business continuity so that your teams have the support they need to keep the business operating during unforeseen events. You’ll save money by minimising costly downtime.
In addition, outsourcing reduces key person risk. This means your company can save by avoiding the business interruption costs that can occur when senior team members are not available.
What’s more, your company will benefit from getting access to the latest technology without having to spend money on finding, implementing and maintaining big-ticket technology solutions.
02 Save time
One of the key advantages of outsourcing is that your company can regain precious time and use it to focus on what matters – growth and profitability. For example, when you outsource payroll, your in-house HR team can focus on achieving more strategic objectives, such as increasing employee engagement and productivity. With the time saved by outsourcing, your company can then reallocate staff towards core business activities.
03 Gain expert advice
Outsourcing to a professional corporate services provider gives your company access to a pool of business knowledge specialists without:
- the salary overheads;
- constant training costs; or
- the expense of having your in-house team spend vast amounts of time trying to stay on top of changing regulations.
Focus on strategic planning to stay competitive
While the Malaysian economy is forecast to gradually recover from Q4 in 2021 and into 2022, 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 while adapting to ‘the next normal’.
Futureproof your business by outsourcing to a trusted corporate services provider
Outsourcing 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 integrated, value-add corporate services, including:
- human resources;
- accounting and financial;
- corporate secretarial;
- tax advisory;
- share registry;
- share issuing; and
- employee stock options plans.
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.
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