Outsourcing non-core business processes, especially complex procedures such as payroll, can make a great difference to the organisation. Many small and medium enterprises often hesitate to outsource their business processes even though it can be beneficial to them. This is mostly because of a few simple doubts or misconceptions. Here are a few of the most common payroll outsourcing myths that hold back businesses from venturing into outsourcing their payroll.
- Sharing confidential information is dangerous
This is the biggest myth that keeps most SMEs from outsourcing their business processes. Sharing confidential information is a necessity when it comes to outsourcing processes such as payroll. But almost all good outsourcing companies sign a Non Disclosure Agreement before proceeding with the project. Also if they do leak out any confidential information, they are legally liable and it will also damage their reputation.
- Always rely on the big wigs of the industry
Cost controlling is the most important aspect of running an SME. When you hire the bigwigs of the industry to get your work done, you will have to compete with other organizations of buying power that far exceeds yours. On the other hand finding a relatively smaller but much more focused team can help you get better value for money while providing quality services.
- Outsourcing is only for big companies
Outsourcing is done with the aim of allowing businesses to dedicate a greater portion of their time to conduct their core business activities. This is an area that is very crucial for the success of any SME. When you outsource your non core business activities, you get more time to concentrate on your core business activities.