Experts at Horizon Business Solutions are recommending that companies look at outsourcing payroll functions in order to free up staff time and allow more focus on core competencies.

Experts Advise Outsourcing Payroll Allows Focus on Business 
Experts are advising the outsourcing of business processing to increase employee focus and flexibility. According to business management expert Dan Robins with Horizon Business Solutions, “The advantages of outsourcing far outweigh any potential problems.”

Business process outsourcing (BPO) began in the manufacturing business with corporations such as Coca Cola outsourcing segments of supply chain management. As small and medium-sized companies began to see the advantages of outsourcing BPO grew. Today BPO involves contracting with third party service providers to management all kinds of operations, processes and functions. Outsourcing payroll has proved to be a major resource and capital saver for companies and organizations. 
The outsourcing of payroll is known as the outsourcing of a back office function and often includes the outsourcing of all accounting and finance processes. When a U.S. company outsources payroll to another country this is called offshore outsourcing. This practice has been the cause of some hot political and economic debates. The cure for this, obviously, is conducting business with a U.S. business management firm, such as Horizon Business Solutions.

“Companies need to focus energy and staff time on their core competencies,” says Dan Robins. “Key employees are freed from the burden of administrative processes and they can focus on doing what they do best, not tied up with payroll.” 
Robins says BPO allows companies to increase their flexibility. Because most BPO vendors offer products on a fee-for-service basis companies can transform fixed costs into variable ones. A variable cost structure helps a company respond well to changes in capacity. Companies also don’t have to invest in assets. This creates more flexibility, says Robins.

Robins goes on to say, “You can reduce your response time to change.” The business management firm specializes in the business services that they are contracted to provide. They stay up-to-date on technology, news and trends in their business and keep their customers’ processes current and efficient.

But potentially most important, says Robins, is a company’s opportunity to focus on their own core competencies without being weighed down by the burden of bureaucratic restraints. Key staff members are free from completing non-core process. They invest more time and energy into their core business processes. A focus on core competencies can give a company the competitive edge that they need to win in today’s tough market place.

BPO also increases the speed of business processes like payroll. The effective use of partners in business increases speed. With experts focused on processes that they specialize in, speed and accuracy increase.

Maintaining entrepreneurial agility is key to a company maintaining its place in the market. Outsources payroll allows a firm to retain their flexibility and focus on creating new business. It helps companies avoid a more bureaucratic mode of operation. Staff can focus on creativity and using expertise. This could actually allow a company to grow faster, as it will be less constrained. Dan Robins says, “Just the equipment savings is huge. Equipment can take years to amortize and may be out-of-date quickly.”

While outsourcing is a major capital saver, Robins acknowledges that no business enterprise is completely without risks. That’s why he says companies should be careful in selecting the outsourcing firm that they use. Robins says, “Horizon Business Solutions offers transparency. There are no unforeseen or hidden charges. Companies should be wary of vendors that don’t offer a clear menu of services that is complete with pricing.” Robins also says outsourcing companies must be able to demonstrate that they can meet services levels and change as the customer’s needs change.

According to the experts at Horizon Business Solutions the few risks of outsourcing payroll are far fewer than the benefits. Freeing staff time to focus on growing business leads and using expert knowledge can and has provided the edge that businesses need to become a leader in their field.

Source: Virtual Strategy

Payroll is the most common department for businesses to outsource, an outsourcing expert has claimed.
The National Outsourcing Association (NOA), which promotes successful outsourcing, said it had seen an increase in the number of organisations outsourcing contracts to reduce costs.

Martyn Hart, chairman of the NOA, said: ‘Outsourcing payroll is even more important for small businesses. Smaller teams and less capital to invest amplify the impact of the benefits.

‘Payroll, along with cleaning, is the most common thing for small companies to outsource.’

According to the Chartered Institute of Personnel and Development, the top five benefits of outsourcing payroll and HR are reducing business costs, increasing effectiveness of delivery, providing greater expertise, moving HR up the value chain and aiding organisational growth.

Source: Payroll World

Global Human Resource Outsourcing (HRO) to Reach US$162 Billion by 2015

It’s no surprise that in the aftermath of the GFC the buyers of Human Resource Outsourcing services are still very price sensitive. There is increased competition from new players entering the market and for the suppliers margin squeeze is a major challenge and maintaining efficiency and controlling costs is still critical.

According to the report from Global Industry Analysts, cost reduction has emerged as a key driving force for HR outsourcing market in the short run. HR outsourcing ensures superior performance at low cost and is also capable of converting fixed costs to variable costs. The report argues that by employing the services of low-cost offshore firms, companies can realize significant cost reduction without affecting the overall quality.

The impact of the GFC was particularly pronounced on the multi-process HRO market, owing to the relatively longer payback period associated with such contracts. On the other hand, single-process HRO agreements are likely to gain traction in the short-term, as businesses exhibit aversion to multi-process deals that generally entail large upfront investment. The recession has also enhanced the significance of offshore HRO service providers, enabling them to capture a greater share of the market from US-based HR service providers.

While certain companies opt for selective outsourcing due to financial constraints, others seek access to advanced technologies through such outsourcing initiatives.

Payroll is one of the most common business functions to be outsourced due to the high degree of complexity and accuracy associated with the operations. The time-consuming payroll services require extensive knowledge about country specific rules, and massive capital investment, which makes outsourcing the process attractive. However, it is a scale business and margins are very skinny.

The higher degree of flexibility being incorporated by HRO providers into their service agreements is expected to allow clients to opt for pay-as-per-use pricing or seek on-demand service changes. Continued focus on cost reduction is expected to allow new clients to focus on transaction-intensive processes to outsource.

Benefits administration is among the most complex functions involving huge volumes of transaction. With advanced technology and sophisticated systems, outsourcers provide customers with pertinent information, self-management, varied choices, and ease of execution services. Asia represents the fastest growing market in the benefits administration segment.

For more details about this comprehensive market research report, please visit www.strategyr.com

Payroll Outsourcing Australia – benefits Of Payroll Outsourcing

Modern Payroll services

The main asset of any kind of corporation would be the employees and a good book keeping program, and appropriate payroll assistance is important because it keeps the business going and makes the employees satisfied. An organization would benefit if an employee is dedicated to his/her work and for them to get motivated, their payment must be promptly given. The payroll is the heart of any business sector and hence needs to be efficient and strictly controlled.

Outsourcing payroll is an Australia-based payroll service provider which is situated in Sydney. HR payroll software package allows the actual HR staff to carry out your payroll providers from month to month inside a clean fashion. In a company there are workers who will be paid on an hourly basis, a few in a daily basis and some on a monthly period and hence their wages have to be computed correctly.

This can be a tiresome job on the part of the HR if manually computed. But with the HR and payroll software program that is released in the market had proven to be a great help to the HR people with regards to payroll concerns.

Outsourcing payroll provides outsourcing of modern payroll solutions and pursuits. It does so according to the customization of the needs of every business owners and presents particular features that in turn will be profitable on their part. We provide extremely professional and accurately done payroll solutions to every client we serve.

You can find six major factors as to why you should outsource your payroll concerns to our modern payroll services. First, as the number of your employee increases, so does the labor expense, and there can be times that the HR personnel won’t be able to handle the payroll tasks if done by hand.

This is the condition in which you necessitate to get payroll software or an in-house payroll processing system. Outsourcing payroll provides user-friendly and flexible payroll software that meets all the Australian taxation standards and also meets the requirements of the local government.

Our payroll software package smoothens the progress of online tax processing in a timely manner. This kind of facility offered is an advantage to our consumers since the software made it easy for the users to fill their Federal and State taxes effortlessly and in a timely manner. The 2nd important advantage of a person employing our payroll software is the control you have around the payroll providers. In-house payroll software program permits you to make the modifications and upgrade of data of various departments and supplies the flexibility necessary for the same. An easy payroll service does not supply this particular flexibility.

Outsourcing payroll offers secured and reliable in-house payroll software program to its corporate customers. Safety and credibility is important to payroll companies, and a risk-free software program enables just the authenticated employees to gain access to or update the payroll data. Moreover our payroll software is web-based, and a web-based service demands added security features which can be appropriately provided to business owners by us by constraining the actual screens which can be visible to certain personnel according to their privileges.

Source: Ezinemark.com

Since its foundation in 2006, payroll outsourcing company PayMe who caters for contractors and small businesses, have experienced impressive growth year after year. No doubt the escalation in the payroll outsourcing industry, spurred by the global recession, in the last few years has contributed to PayMe’s rapid success. However Ian Lindgren, CEO of PayMe, believes that his company was able to offer the outsourcing market something that was missing.

Prior to establishing PayMe, Ian Lindgren worked for 21 years as an army officer managing the acquisition and implementation of information technology for the Defence Department. After leaving the army he and his wife set up a management consultancy, contracting for the Defence Department on a number of projects, and employing a number of other consultants.

Our approach to managing our team of consultants drew an increasing number of people who wished to be managed and paid in the same manner as our consultants.” Ian realised there was a gap in the market when it came to servicing the payroll and HR needs of consultants, contractors, 457 Visa holders and small businesses, so in 2006 he decided to establish his own payroll company. “I founded the company on the principles of personal service, rapid reaction and the broadest range of payroll options.”

In its first year of operation PayMe’s turnover was a respectable $A 600,000. Four years later, for the financial year finishing in June 2010, turnover was touching $A 100 million.

Likewise, in 2001 Matthew Franceschini, CEO of Entity solutions identified the same gap in the market to better service the payroll and commercial needs of contractors and independent professionals. Franceschini comments, “We knew from the outset that our success would hinge on our ability to provide exceptional service to what we considered a poorly serviced professional contracting market.”

In 2009 Entity Solutions was named the winner of the Australian Business Awards for Service Excellence and listed in the BRW Top 500 Private Companies. Entity’s annual turnover is $A 179 million per annum, and they now have four offices across Australia.

However, rapid growth brings rapid pain and success can bring significant challenges to an organisation that is growing so fast. A large proportion of those challenges for PayMe stemmed from the information systems they had in place. Lindgren says, “Our previous IT systems were very limiting. They couldn’t handle salary sacrificing, account for multiple companies within a single database, or assist us with driving down the cost of business through efficiencies and business intelligence reporting”.

According to Lindgren, to be a successful player in the payroll outsourcing industry requires the ability to communicate, take rapid and decisive action, “You also need to be focused on your mission and be keenly aware of the cost of service delivery. This can only be achieved by having integrated information systems that give you a complete and accurate view of your business and your clients. ”

Entity’s Franceschini concurs, “Every business should adapt, change and evolve very quickly, but the core values and essence of one’s business should be maintained.”

Without adequate systems and controls in place mistakes and errors can create a management nightmare as an organisation expands. Excessive administrative burdens will be placed on staff as they try to fix those mistakes and re-enter data. A hidden factory of unpaid work can materialise and have serious impact on output delivery and customer service and result in loss of business.

To achieve their business objectives of maintaining sustainable growth while trying to remain true to their core principles, they have implemented a new enterprise information system. “We wanted an integrated information systems environment that delivered ‘the same version of the truth’ in near real time for up to 10,000 outsourced employees and an unlimited number of companies.“

Heavy investment in technology is also a major feature of Entity’s business model. Recently they have bought and implemented a comprehensive solution to manage their web portal.

By investing in their new systems PayMe hope to underpin their exponential growth. Looking forward to the business horizon Lindgren declares, “We aim to triple our turnover each year, expand our payroll delivery into New Zealand, PNG and nearby Pacific region countries. We also want to expand our business to deliver outsourced accounting, tax agent and leasing capabilities.”