The document discusses the history and benefits of outsourcing for businesses. It notes that outsourcing has been used in the US since the Industrial Revolution as companies sought to focus on their core competencies. While initially seen negatively in terms of offshoring jobs, outsourcing can provide flexibility and cost savings by handing off non-core business functions. For small and medium businesses specifically, outsourcing services like accounting, HR, payroll, and marketing can free up time for owners to focus on growth opportunities.

1. 12/30/2014
Outsourcing Administrative Tasks
How Oklahoma businesses can leverage for growth

2. “Outsourcing?
I’ve heard of it.”
Maybe you have heard the term
"outsourcing" but do you know it's
history in the U.S.? The press and
media have used outsourcing to
describe "off-shoring" activities big
business use to drive local work to
foreign labor markets. However,
outsourcing is not as scary as it's
been made to sound. In fact, it
has a very historical trend in the
U.S. Some of these outsourcing
facts may surprise you.

3. Historical perspective of outsourcing
in the U.S.
✤ According to Robert Handfield, Ph.D. and Executive
Director of SCRC, Bank of America University
Distinguished Professor of Supply Chain Management,
he has this to say about the subject:

4. ✤ "Since the Industrial Revolution, companies have
grappled with how they can exploit their competitive
advantage to increase their markets and their profits.
The model for most of the 20th century was a large
integrated company that can “own, manage, and
directly control” its assets.

5. ✤ In the 1950s and 1960s, the rallying cry was
diversification to broaden corporate bases and take
advantage of economies of scale. By diversifying,
companies expected to protect profits, even though
expansion required multiple layers of management.

6. ✤ Subsequently, organizations attempting to compete
globally in the 1970s and 1980s were handicapped by
a lack of agility that resulted from bloated management
structures.

7. ✤ To increase their flexibility and creativity, many large
companies developed a new strategy of focusing on
their core business, which required identifying critical
processes and deciding which could be outsourced."
(article link)

8. ✤ Furthermore, Loral Narayanan with CREDIT TODAY
noted in another article:
"It wasn't until the early 1990s, however, that
outsourcing really caught on. Companies, now focusing
on cost-saving measures to increase revenues, realized
the value of handing-off functions necessary, but not
directly related, to their core businesses. The trend
toward using outsourcing as part of an effective business
strategy continues to the present." (article link)

9. Outsourcing services for small to
mid-size business owners
✤ It is possible that businesses go through growth or
complexities in their operations and find they need
experienced help. Those leaders have the task of
going through the hiring process or looking for outside
help. If you are considering outsourcing as an option,
implementing such a plan will include the following
types of activities:

10. Accounting
✤ Balancing your accounts payables and receivables
✤ Managing your payroll accounting
✤ Reconciling your bank account
✤ Generating your income statement and balance sheet
✤ Monthly/Quarterly/Annual business reviews based on
your needs and growth
✤ Tax Preparer ready reports to provide your Tax Partner
✤ Assist with cash flow analysis and financial forecasting
✤ Generate reports you may need for audits, banks or
other regulatory needs
✤ Payroll accounting and reconciliation

11. Human
Resources
✤ Recruitment
✤ Retention
✤ Separation
✤ Employee coaching
✤ Employee relations
✤ Supervisory training
✤ Health benefits administration
✤ HR compliance duties
✤ HR Training

12. Payroll
✤ Complete payroll administration
✤ Custom payroll integrations
✤ Time & attendance
✤ Wage garnishment administration
✤ Federal and State filings
✤ Employee record management
✤ Offsite record keeping
✤ Direct payroll deposit

13. Marketing
services
✤ Website development
✤ Online content strategies
✤ Social Media
✤ Email Campaigns
✤ Lead generation
✤ Analytics
✤ PPC Campaigns
✤ Sales CRM Integrations

14. What kinds of things could you do with that extra time?
Consider how you would feel knowing you have a local
partner that brings to the table years of experience and is
working under direct terms you set to be met? It's a different
relationship than an employee relationship - the value
potential increases exponentially. Think of the possibilities.