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Should you outsource your company admin?

7 min read

To outsource or not to outsource? This has become one of the most hotly debated topics among business owners. Outsourcing provides an effective solution for businesses to solve human resource shortages, while still meeting set business goals. By outsourcing activities, labor productivity can be increased while investment costs are reduced.

Many companies outsource administrative services in order to save costs, increase quality of service, gain access to outside expertise, and ultimately free up personnel to focus on more beneficial concerns.

If you’re hoping to follow suit, you need to consider your unique business needs, your workforce, and the pros and cons relevant to your business. This article will give an overview of the advantages and disadvantages you should consider when outsourcing admin tasks.

Are you ready to outsource?

The decision to outsource will depend on the nature and, most importantly, the development stage of your business. This is because businesses’ needs vary at every stage of development (a startup and a mature company, for example, won’t have the same business needs).

Once your company starts experiencing growth, employees might need to stretch themselves to cover an increase in duties. If you find yourself having to focus on higher priority tasks and in return, neglecting seemingly small admin tasks, it’s probably time to outsource. Even the repetitive and simple admin functions are significant in the success of your business. By outsourcing, administrative services are professionally and efficiently attended to while your company is free to focus on core duties as deemed fit.

Generally, for start-ups and small businesses, outsourcing administrative tasks can make all the difference. You’re able to avoid costs that come with hiring extra staff, including insurance, salaries, benefits, and a bigger office space.

Pros and Cons of outsourcing your company’s admin

Outsourcing admin tasks in Hong Kong offers many benefits, but they need to be balanced against the disadvantages. Let’s take a look at the pros and cons of outsourcing your company admin and you can be the judge yourself. Scroll down for an in-depth look at each point.

Pros and cons table of outsourcing your company admin
Pros and Cons of outsourcing company admin

Pro 1 – Fully trained workers from day one

By outsourcing your company’s admin functions to industry professionals, you have access to fully trained and qualified support right away, and for as long as needed. You immediately get productive, consistent, and efficient services and people with many years of experience working for you. Ultimately, by tapping into the specified skill sets of experts, your company is able to substantially improve performance.

Pro 2 – Good on the wallet

Outsourcing specific tasks is cheaper than hiring full time staff, as you are able to save time and money on recruitment. Hiring full time staff includes spending money on the onboarding process, office resources,and employee benefits. However, by outsourcing your company’s administrative tasks, you’re able to find the right service at the right price. You can save money by making arrangements to pay per project or by the hour without a fuss.

Pro 3 – Laser focus on what matters

Another benefit of outsourcing your company’s administrative tasks is enhanced freedom. You and your staff will have more time to concentrate on your skills and strengthen core processes. By focusing on top priority projects, you can not only maintain your business, but watch it scale up and grow.

Pro 4 – Assured compliance with laws and regulations

There are myriad rules and restrictions surrounding accounting and governance in Hong Kong, and many are prone to tweaks and changes over time. This makes the job of a company secretary one of the most important aspects of business to outsource. That way, when there are changes to the rules, you can sleep easy knowing your service provider will keep your company compliant. Outsourcing your company secretary to a Hong Kong provider like Sleek, therefore, goes a long way in helping you stay abreast of all changes.

Pro 5 – Easily meet your deadlines

As your business grows, demand increases and projects will undoubtedly roll in all at once. With continuous development, there’s bound to be increased strain on the in-house team. As the more time-sensitive projects take primary attention, it’s likely that administrative tasks may not be attended to quickly enough. You shouldn’t let this happen, especially with time sensitive items like payroll, MPF, and vendor payments. By outsourcing and automating these processes, you can meet pressing deadlines while staying on top of routine duties.

Pro 6 – Future-proof your business

Another massive advantage of outsourcing is the fact that you’ll always be up to date with the latest practices and processes in Hong Kong. Especially if you outsource IT or insurance, your company will stay adaptable through industry shifts. Outsourcing providers will not only help you keep your business models fresh, but it will also give your team resources to further develop its processes, which are essential to future success.

Con 1 – Not “one of your own”

The first disadvantage is that outsourced services are not within the company’s hierarchy. Full time staff can be dutifully hired and nurtured in line with the methods and culture of the business as the business grows. However, it is pertinent to consider that you’d spend a larger amount of time training a full time staff member, with the difference being that they can leave for a different job at any time. Although outsourced teams are not fully within your command, you can still brief them about your business infrastructure and operations in order to ensure a smooth working relationship. The outsourcing team will always be ready to serve based on your needs, and for as long as you want.

Con 2 – Lack of control

Although you provide the direction in regards to what you want to achieve, outsourcing your company’s administrative duties means it is not done at your business’ physical site. This can make you feel like you don’t have complete control, compared to having someone completing the tasks in-house. But, of course, this can be managed in our hyper-connected world. You can easily keep tabs and even get in touch with your outsourcing providers whenever you need to, retaining as much control as you want.

Con 3 – Communication difficulties

Challenges in communication might come up as a result of different time zones. For example, a Hong Kong business that has outsourced its administrative functions to the USA might face serious challenges with synchronizing schedules, especially during work hours. This is why frequency and methods of communication should be discussed from the onset.

Con 4 – Conflict inside your company

Outsourcing can dampen the morale and company culture of your team, depending on the size and sentiments of staff. Even though outsourcing is clearly a cost-effective option, there may be employees who are worried about being replaced or put out of work. This is why it’s important to handle outsourcing while maintaining open communication with your team. By being transparent, your employees understand the business decision being made. This will help increase positivity, trust, and productivity around the company.

Con 5 – Security of privileged data

By outsourcing processes that handle personal data, businesses might risk compromising their privacy and security. It is important you exercise caution in this digital age, especially when customer data is involved. Certain sensitive items like payroll, identification documents, and other confidential data should all be handled with the utmost care. You can sign non-disclosure agreements and create non-compete clauses when necessary. You should also take time to understand how the outsourcing company keeps data safe and secure, and take extra precaution by obtaining cyber insurance. By doing this, you have a more secure working relationship.

How to get started with outsourcing

As a business owner, understanding the pros and cons of outsourcing company admin isn’t something to take lightly. Working with an experienced and trustworthy service provider is the best and most practical way to not just save money but also propel your enterprise forward. And what’s better, you can still reinforce productivity and make your employees happy.

If you are searching for a partner who knows how to help your business work and grow, get in touch with Sleek! We’ve got an array of services for you to use today.

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