Outsourcing: How Co-sourcing Changes Everything
By: Lindsay Sisk, Gable Tax Group
Gable Tax Group is excited to announce we will be releasing a series of blog posts on the topic of outsourcing and how it can effectively help taxpayers increase cost savings.
I think it goes without saying people’s notions on the topic of outsourcing and how the media and politicians portray it as if it’s a dirty word can be unfavorable for any industry. Jobs are outsourced to Mexico, China, the Philippines, and India regularly, and some people take offense because jobs that could be performed in the US are being moved where labor is cheaper. There is also a stigma that lower cost equals lower quality.
But not all outsourcing equates to moving work to other countries; outsourcing occurs every day in the US amongst other US businesses and is seen more as services rendered than outsourcing. However, the overall goal is to shift a duty outside of the company for compensation to either save money, time, or capitalize on expertise (or all of the above, hopefully). Additionally, for most companies it is a smart business decision to outsource noncore business functions to experts because it alleviates time to concentrate on revenue generating tasks where their own expertise lie.
The great news is service providers like Gable Tax Group are redefining what it is to be an outsourcer and are taking a different approach by co-sourcing.
Co-sourcing by definition is “The combining of services from within and outside a business to achieve the same goal. Outsourcing can fill in gaps in internal expertise and save businesses time, money, and effort in recruiting additional staff” (businessdictionary.com).
In the tax industry, outsourcing is common practice. Meaning, hiring an accountant or tax specialist is a typical function for most businesses. However, the tax service space is shifting from an outsourcing mentality to one of co-sourcing. Taxpayers want high quality service and they deserve it. Often, they are paying a premium for expert help but worry they will lose the control. There is a myth that if you hold your tax functions close you are in control; but by co-sourcing, you delegate the function to an expert and work together to get the desired result, just as you would if the function were conducted in-house.
For instance, while preparing sales tax returns, Gable Tax Group completes the return preparation function but has certain guidelines and functions outlined by the hiring company in which they must operate. Additionally, nothing is filed without approval, therefore, the same control process that would be in place internally is performed with an external company. The goal is that the returns are prepared more efficiently, accurately, and timely and almost always for a smaller price tag than doing so internally. Which leads to how co-sourcing is different than outsourcing.
Gable Tax Group’s approach is to work within the guidelines and parameters of the hiring company, while providing feedback for the best approach to be compliant. The risk shifts to us, meaning if there is an error in the return preparation, it is our responsibility to fix any issues. But increasing communication and customer service allows for a more personalized approach while keeping the company informed and in control.
The next few weeks our blog posts will be centered around how co-sourcing can specifically help your company when it comes to saving time, expenses, shifting risk, and turning your cost center into a profit center.
Have questions now? Let Gable Tax Group help you, it’s what we do best! Call 888.872.6579 or email firstname.lastname@example.org.
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Retrieved on August 3, 2017. http://www.businessdictionary.com/definition/co-sourcing.html