Should you consider outsourcing certain business processes undertaken by your UAE entity?

What exactly does it mean to outsource a service?

Outsourcing is most commonly known as “an agreement in which one company hires another company to be responsible for an existing internal activity”. For example if your company is unable or unwilling to hire internal staff to perform particular functions you can outsource these tasks to a third party service provider so they will take full responsibility for carrying out these processes for you.

There are a number of business processes that can be easily outsourced in the UAE, including, visa processing, trade license maintenance, human resources (HR), payroll, management accounting services, government liaison and administration services.

Whether you are a company that is new to the UAE or a company who already has a presence in the region looking to outsource some of your current business functions, there are a number of advantages and disadvantages in taking this approach.

Some advantages include:

  • Cost saving: Outsourcing removes the need to hire employees in-house which minimises your recruitment, operational and overhead costs; a huge advantage for many companies.
  • Focus on core processes: Outsourcing your support processes gives you more time to evolve your core business processes rather than focusing your attention on back office administration.
  • Speed and expertise: Outsourcing services means that specialists, with superior technical expertise are responsible for your business functions. This means that tasks can be completed faster and allows you to continue working without disruption.
  • Risk-mitigation: Outsourcing additional business processes means that your organisation shifts responsibilities to the outsourced provider. As long as the vendor is a specialist in this area they will be able to plan your risk-mitigating factors more effectively.

Disadvantages

  • Confidential data: When you outsource your HR, payroll and management accounting services, you will need to share confidential company information with a third-party. It’s therefore imperative to choose a reputable provider who will have safeguards in place to ensure your data is never compromised or shared.
  • Customer service: An outsourced vendor may be handling multiple contracts for a number of organisations at the same time which may impact on your organisation in the long-term. Make sure that when choosing your ourtsourced business provider they will allocate you a dedicated account manager to answer your questions and help you should you need any advice or guidance.

Overall, there are many advantages to outsourcing certain business functions, but it is important to find a reputable organisation to do this on your behalf.

Links Group has over 15 years’ experience in the region and is able to provide you with a number of solutions to suit your business needs. We pride ourselves on being a secure and reliable provider and we are always available to guide and support you along your journey.

If you are interested in outsourcing your business’ services, please get in touch with Wayne Merrick, Head of Corporate Solutions on wayne.merrick@linksgroup.com or +971 (0) 4 446 3900.

Article by Wayne Merrick on Oct 22nd 2018