The business case for payroll outsourcing

Overview

Comforting signals are beginning to be picked up from economic commentators about the UK business climate. Business directors may be drawing breath and perhaps starting to feel that the worst is over.

However, economic recovery is never entirely predictable and 2010 may still be a hazardous time for trading. Business managers and directors understand all too well the need to maintain vigilance and know that they will do well to keep their operations under review if they are to emerge from this recession in good shape.

It is conservatively estimated that around 95% of businesses in the UK
outsource at least one of their business processes and the trend
towards outsourcing shows no sign of abating. The potential to cut costs and streamline operations using an outsourcing arrangement means it continues to be an attractive way of putting some financial certainty into the business plan.

In this survey of 270 medium and large businesses conducted by Accountancy Age, a resounding 94.5% of respondents said cutting costs and improving delivery across their administrative functions would be ‘essential’ or ‘important’ to them in 2010.