You may wonder, why are there still hidden costs when I chose outsourcing in order to cut costs? Well, anything that may crop up later during the contractual relationship that is not covered will constitute in additional charges such as insurances, etc.
Threat to security
If your company has access to tons of confidential such as access to client mails and bank accounts, payroll and medical records, there might be a risk of breach in confidentiality.
Hence, the outsourcing company must have their credibility as well as their background checked before being engaged.
Time and effort
Selection of vendors should not be done lightly as time and effort should be put into researching, testing, and selecting the right and suitable partner.
Issues faced replacing outsourcing vendors
Lack of knowledge of the outsourced functions also meant that you as the business owner might have difficulties describing the services and proper job scope to the suitable supplier.
FUN FACT: About 40 percent of banking positions are outsourced. At the same time, 43 percent of call center positions are outsourced. Sixty-seven percent of legal services are outsourced. Fifty-three percent of manufacturing companies take advantage of outsourcing.
Global challenges Faced by Singapore Outsourcing Providers
The main issue is that many companies in Singapore chose to outsource service to providers in other countries. This problem is worsened by the fact that for many Singaporeans who are seeking a job, positions that are related to outsourcing have lost their appeal for various reasons.
This has led to a decline in local talent in this field and has not seen growth in recent years, making it difficult for many of Singapore companies to seek outsourcing services within the country.
Therefore, those who carry out outsourced services in Singapore ought to counter this turn of events. They may do so in either of two ways:
By offering services that most or all of their foreign counterparts do not
By providing services at such a high level that they will naturally become the first choice of all companies, regardless of the location of the companies in question
Outsourced Services in Singapore
We at Paul Hype Page & Co is one of Singapore’s leading providers of accounting, payroll, and HR services. Our team has much expertise and knowledge in areas such as taxation, incorporation, work visas, and many other corporate services.
Some of the services we provide include:
Calculation of monthly payroll
Employer registration with the Singapore Central Provident Fund (“CPF”)
Calculation of statutory deductions including CPF, skills development levy, foreign worker levy and ethnic/religious fund deductions
Payroll processing and annual reporting
Issuance and maintenance of electronic pay slips / remuneration reports
Management reporting of trial balance, ledgers and reports issued monthly
Creditors control over purchase invoice and aged creditor reports
Cash management of bank reconciliations, treasury controls and invoice / payment processing
Liaising with auditors over audit queries and updating of trial balances with year-end audit adjustments
Debtors control over sales invoicing and aging debtors report
Preparation and conversion of financial statements
Other reports such as cash flow, budgetary control, and fixed asset register