Outsourcing certain administration functions within an organization has become a trending practice among government contractors. In fact, we have seen a noticeable uptick in outsourced accounting, human resources and contracts administration functions over the past year.
Whether a company chooses to outsource a certain administrative function to fill a temporary void or a permanent one, looking to subcontractors for help makes sense for a number of reasons.
1. They are readily available
Changes in an organization happen all the time (significant growth; change in accounting systems; loss of a key person; unexpected surges), and depending on the size of that organization, change can have a huge impact, especially if a company is small.
Whatever the reason for the change, finding resources to handle the changes can be difficult, costly and time consuming. Because of this, outsourcing missing functions to a company that specializes in those services can be cost effective, efficient and timely as consultants can be ready to immediately begin filling those gaps.
2. In-house resources are expensive
Great in-house resources are expensive to hire and retain (or terminate if need be). The process of sifting through a multitude of resumes and sitting through interviews, only to find that you’re no better than when you started, is both exhausting and costly.
Most consulting/outsourcing companies, including Redstone Government Consulting, have gone through that expansive process for you and have hired the best and brightest in their field, whether it be accounting, HR, contracts, government contract compliance, pricing. By outsourcing these services, a company can afford industry experts at a reasonable price.
You’ll also only pay for what is needed, which is often less than the cost of a full time employee or a staff of employees. Not only can a company cut costs on salaries, but there is also a savings in facility and occupancy cost, fringe benefits cost, training cost, and management cost, all of which impact the incredibly important and sensitive G&A rate of a company.
When you come to the conclusion that the relationship with your outsourced consultant is no longer needed, it is as simple as notifying that services are being terminated and that is the end of the story. Terminating an employee that isn’t working out or that no longer possesses the skill set that is needed by a company can be difficult and painful. It usually involves costly meetings with internal management, HR and often times legal counsel (terminated employees are a risk in terms of allegations of wrongful termination or even worse, calling a government hotline alleging fraud by the ex-employer).
3. They possess a high degree of expertise and knowledge
Consultants are experts in their field and offer a wealth of knowledge and experience. On a daily basis, consultants are exposed to new and challenging circumstances and face a magnitude of questions and inquiries from companies of all shapes and sizes. This fact alone means that consultants have to stay ahead of the curve in their knowledge and research.
Also, a majority of consultants are professionally certified (e.g. CPA) and as such, have not only an expectation, but a mandate to attend regular training and be continually educated to ensure they possess the knowledge expected by their clients.
4. Auxiliary services create added value
In a firm like Redstone Government Consulting, not only do our clients benefit from the one or two individuals in which the client most closely interacts, but they benefit from the expertise of our other industry specialists. For example, our accounting outsourcing group for government contractors has the reach back and availability of retired government auditors, which is helpful when a government compliance issues arise.
They also have access to our accounting system implementation experts (CostPoint, Unanet, Quickbooks) for instances when software issues are rearing their ugly head, and even to HR expertise when there is a benefits issue that needs resolution.
The list goes on, but the peace of mind a company gains in knowing that there is a team of experts available for advice and assistance at the drop of a hat, is invaluable.