Address to the Customers

Dear colleagues,

As you know, today the concept of outsourcing is being actively discussed in business circles and mass media. What makes this topic so popular? Outsourcing as an effective strategy of business management has always been an attractive tool for reduction of costs both for foreign companies operating in our country and for Russian enterprises emphasizing transparency of business. As a rule, advantages of switching to outsourcing for a company are rather obvious: top management focuses on succeeding in its key tasks and delegates “non-specialized” functions to professional contractors having ready effective solutions for any type of business. The result is the reduction of costs: high-quality accounting and payroll accounting services, for example, cost less than expenses on the similar internal functions owing to the economy of scale and worked out standard solutions. On the other hand, the main question for Customers is, of course, the question of trust in the provider: is it possible to outsource the holy of holies, the accounting or staff record keeping?

The outsourcing of business processes is certainly a very flexible tool for carrying out of everyday tasks of the company. The Customer’s business is unique and requires an individual approach at switching to outsourcing on the one hand, but on the other hand it is an accurate adherence to cooperation, observation of standards, forms and terms of reporting, work according to optimal algorithms for achieving of high quality and efficiency. Today the capacity of the Russian outsourcing market is estimated approximately at 3-4 billion rubles. Compared to the potential of outsourcing market development for such a large-scale economy as the Russian one 4 billion rubles is a drop in the ocean. The potential amount of the market is hundred times more. The niche can be regarded as vacant, because outsourcing as a tool has begun its development in Russia relatively recently.

If we speak about percentage of popularity of types of accounting functions for switching to outsourcing, of course, certain statistics also exits here. For example, a full package of services (accounting + payroll accounting + staff record keeping) is as a rule in great demand mostly by small representative offices of foreign companies. Middle-scale business also often orders a full package of services, but in this case integration of outsourced accounting procedures and Customer’s production processes requires a thorough workup. Large companies, in which accounting procedures are integrated in the enterprise’s production and resource management system, more often practice only the outsourcing of payroll accounting.

Universality of solutions on the one hand and their flexibility on the other enable to accomplish tasks of a certain Customer with high quality in a short period of time. Today I can confidently say that outsourcing gradually becomes a part of the anti-recessionary programme of an enterprise and a sensible way out in the situation of cost reduction.

Yours sincerely,
Sergey Tiunov,
Director General
Outsourcing Division (BDO) Russia