Is Outsourcing For You?

outsourceOne of the most popular posts on StartUp Revolution's forum at the moment is all about outsourcing, and so it seems like the perfect time to revisit some of the key points about outsourcing. Paper Mountain Solutions has successfully been providing outsourcing support for many years, and you can find out more about our services here.

So why outsource? Well, in the words of Paul Smalley, Paper Mountain Solution's MD, "It gives you access to a team of specialists that ordinarily a small business could not afford."

So not only do you get an expert, from finance and admin to graphic designers and content writers, looking after your business, but the outsourcing company will also be employing that member of staff, meaning you don't have to. In effect your business gains expert knowledge and saves money at the same time. An essential combination for any small business.

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More Work For Freelancers

freelancerWith the change in working patterns we have witnessed so too has the use of freelancers grown 120% this year, reflecting how businesses are adapting to new technologies, budgets and work practices. So, while many are struggling to find work in the permanent job market, for others the route of a freelance may be opening many doors. Not only are many finding work as a freelance worker, but it's also a great way to test the water before setting up in business. For many it offers an opportunity to start building up clients and an understanding of how to manage your own time and finances before setting up as, say, a Limited Company.

Of course, it depends on your area of expertise, but particularly in demand are those with software development skills, along with graphic designers, content writers and Internet marketing. There has also been a rise in demand for outsourced admin such as transcription and data entry.

Did you work as a freelancer before starting your business? Is this a route you would suggest to others thinking about setting up on their own? We'd love to hear your thoughts about the positives and negatives of working as a freelancer.
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The Benefits of Outsourcing

39049ezl6hs1e6qThe extensive benefits of outsourcing, as shown by Paper Mountain Solutions, include access to expert knowledge that your own business does not have, plus the undeniable cost savings that can be made by choosing to outsource particular aspects of your business. To get the best out of your outsourcing partnership, though, you need to think of your outsourcing provider as simply an extension of your existing business. There are simple steps to take in order to create a mutually beneficial relationship with your outsourcing business.

 

1. Unsurprisingly communication is key, something Paper Mountain Solutions believes strongly in. It's imperative that your outsourcing provider fully understands your business plan and is kept fully up-to-date with changes and developments within your business. The flow of information, both ways, will ensure both sides are achieving the best possible results.

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Capita's Interim Management Statement


It appears that despite the UK economy facing difficulties, the outsourcing market is steadily becoming stronger and more active after a quiet 2009 and 2010. According to Capita’s recently published interim management statement summing up the first 4 months of 2011, the company has performed solidly due to a clear and strong ‘appetite’ for outsourcing.

The areas in which increased demand has been most significant are pensions and local government markets. The reason for an increased demand in the government area is reported to be due to the Government seeking to deliver public services at most cost effective price. With the ever increasing cost of employing staff and employment regulations, many small and medium sized businesses are beginning to recognise the value of outsourcing. The use of an outsourcing model provides business with access to a skilled workforce who can fulfil the tasks at hand efficiently, but also in a more cost effective manner.

Response to FT and the Telegraph articles about HMRC plans to review 200,000 business records to raise £600m more tax

 

PMS-newsMayThe articles in FT and the Telegraph relate to tax recording and bookkeeping by small and medium sized enterprises (SMEs). HMRC plans to raise an extra £600m over four years by starting trials and paying visits to SMEs to ensure their record-keeping meets the requirements of tax regulations.

According to HMRC’s estimates, 4 in 10 (nearly 2 million) SMEs have inadequate tax records. The programme is implemented to ensure that the current criteria used by tax inspectors successfully identify errors and highlight areas where tax in underpaid.

The first “test and learn” phase will target approximately 1,200 SMEs within the next three months. Tax inspectors will not use their penalty powers unless they discover blatant breaches of tax regulations.

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Response to FT article about businesses making the most of their available resources



The article posted on the FT’s website describes the ways in which businesses can increase their profitability and customer base by either spending no money at all or by investing in new software or in consultancy services. The article focuses on how important it is that those in charge of the business realise how vital, and very often how simple, it is to make your business more profitable, without spending overwhelming amounts of money on for example hiring new members of staff.

The ways proposed by the article, which many tend to overlook or forget about, include ensuring that existing customers return to buy more by developing long lasting customer relationships, rather than adopting a trade as you go approach. This can be achieved by outsourcing to specialist companies those areas of business that you feel you can squeeze more out of, using their expertise.

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Response to FT article about changes to paid maternity leave

 

Draft legislation has been passed by a committee of the European Parliament to extend maternity leave across Europe to 20 weeks on full pay. The proposal will now be put before the full European Parliament in early March.

At the moment in the UK, women get a year off, with the first six weeks at 90% pay followed by 33 weeks on Statutory Maternity Pay – the rest is unpaid. Such a change in the law could have a serious impact on business, with the Institute of Directors estimating that it could cost UK companies between £1.5bn and £2.0bn.

So what could the implications be? It has been suggested that it might discourage employers from taking women on.
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