Outsource Issue 22 - (Page 106)

THE BACK END LETTERS & EMAILS Letter to the CEO Payroll outsourcing can help reduce costs in a difficult financial environment. Siobhan Riley of Sage Outsource Services urges today’s CEOs to look at all their options – and take sensible decisions at the right time. The next few years are going to see a major reduction in public spending as the coalition government implements cuts of £84bn accompanied by tax increases of around £29bn. It is estimated that the public sector will lose around half a million jobs, but the cuts will also clearly impact the private sector as the government, a major customer for many companies, reduces its expenditure dramatically. This new environment will create a much tougher climate for procurement with greater emphasis being placed on costs coupled with increased pressure to look at all overheads and capital projects and ensure they offer value for money. DEAR CEO, It is these pressures that have led PricewaterhouseCoopers (PwC) to conclude that many companies will now begin to seriously consider outsourcing major functions. Enabling organisations to reduce overheads and avoid capital expenditure whilst also improving effectiveness and efficiency, outsourcing frees up businesses to focus their efforts on core activities, which is particularly important when headcounts need to be kept down. Outsourcing not only provides access to extensive expertise that may be lacking in house, it reduces the need to invest in staff training or new software and enables organisations to share the workload with an outsource service provider, or off-load it completely. The current climate will see many sectors begin to consider the cost implications of outsourcing, and one function that all organisations must carry out is payroll. One of the strongest benefits of this option is the way in which outsourcing can reduce costs and at the same time improve the efficiency and effectiveness of your payroll management. When comparing the costs of an in-house to an outsourced solution, it’s important to consider all the associated costs. Staff costs In-house payroll personnel bring lots of advantages: they are on site when you have questions, they can respond immediately to anything that comes up, and they are part of your team. But payroll staff also need holidays, they can fall sick, and they require ongoing training in both your payroll software and legislation. They must also be able to identify which regulations are relevant to your business and maintain accurate records, both of which take time and require extensive payroll knowledge. In addition, if your business is small, there may only be one person responsible for processing the payroll, and that’s a big risk when the payroll must be run, come what may. Easy access to payroll expertise Outsourcing your payroll is about more than simply having someone to produce your payslips each month. You will also need access to a team of payroll experts who will take overall responsibility for managing your payroll. This way outsourcing gives you access to individualised, expert advice whenever you need it without adding to your own headcount. Reduced capital investment Outsourcing eliminates the need to lay out capital for software and hardware, requiring instead a one-off implementation cost, with Consendre mod eugait alit luptati sisisisit augait num iusti facidunt ipsumsan el eraestrud exerat ad onulla cor ing eumsandre ex elit “The chief strategist of an organization has to be the leader: the CEO.” – Michael Porter atetue tet ulla feu feum niamconEm ea commodiam ad tem dolortio Utat lum quisim et, quissi.Volobore m iurero dolobore. 106 ●● ● ● www.outsourcemagazine.co.uk  http://www.outsourcemagazine.co.uk

Table of Contents for the Digital Edition of Outsource Issue 22

Outsource Issue 22
Table of Contents
Shutting the Door?
Q&A: Deborah Kops
Colombia
LPO
Editorial Board Roundtable
Head-to-Head
HR Trends
Long Live AMS!
The Provider Perspective
Platforms Make Sense in the Cloud!
NOA Pathway
Case Study: King’s College Hospital
Egypt
Silver Lining
Roundtable Write-Up
Case Study: Nokia & Hyphen
Alan Leaman
Leah Cooper
Kay Formanek
Paul Awcock
News & Comment
The Legal View
NOA Roundup
Online Roundup
Letter to the CEO
Letters to the Editor
Sourcebites
Inside Source
The Last Word

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