Outsourcing is a term that must have been appreciated, scorned, mutilated, underrated and probably overused during the new Millennial. In simple words, the concept of outsourcing is when you concentrate on your core area of business and leave the rest to experts and reap the benefits.
Broadly defined outsourcing is a practice when a company engages a third party to provide non core services for the Company and the various benefits your derive from such a service is :-

• – As good as hiring experts in each field
• – Tasks get done faster
• – Your focus does not waver away from your actual business
• – Cost can be substantially reduced
• – Better work relations can be maintained

The services that could be outsourced would be anything other than your core business area – viz: Accounts, Payroll and employee benefits, Statutory matters like GST, TDS, Income tax, PF, ESI etc. We often see that most Companies outsource areas like Security, drivers, housekeeping etc as these services are very important but not worth having a department for these functions. When they are given to the experts the department functions in a professional manner and the cost involved would be much more affordable.
This is so, especially in cases of start – ups, the revenue making area of business would be technical and the persons involved would actually like to spend all their time in developing the same and will have no time for the staff functions. The functions like accounts and finance, HR, payroll and compensations etc are equally important and if not attended to properly can bring its’ own complications. For eg: Statutory matters can bring about a lot of liabilities in the form of fine and penalties if not paid or filed on time.
Hence what is most important is that these functions are outsourced to the right experts, so that the very purpose of outsourcing is not beaten !!!