FEATURE
Thibaud Catry , Chief Compliance Officer at ConnectPay
Businessprocessincubator . com notes that payroll outsourcing generally includes a range of activities associated with payroll management , including generating payroll reports , calculating employee salaries and ensuring compliance with tax laws .
BPO originated with large manufacturing companies needing assistance with supply chain management , but it soon grew to include all sorts of sectors , including services companies .
Today , an extensive range of technical and non-technical services can be outsourced
to a third-party vendor and businesses of all types and sizes , across all industries , make use of BPO .
McAlister says it makes sense because a challenging economic environment and the need to do more with less is forcing decision-makers to become more agile , more inventive , innovative and explore markets they would otherwise most likely overlook or side-step .
“ So global expansion , improving efficiencies and maintaining flexibility are identified as top benefits ,” added McAlister .
CRS Technologies says it is very important for businesses to tread with caution and take the necessary time and effort in selecting the right partner .
“ There are a few reasons for this ,” said McAlister , “ but the main one is that by investing in BPO , your company is essentially entrusting data , internal systems and the blueprint of the operation to a third-party .
“ Taking this into consideration , it is incredibly important that any prospective outsource service provider has the experience , as well as knowledge of software , regulations and payroll administration processes and procedures . They have to demonstrate a level of proficiency and technical understanding to be considered .”
CRS Technologies says aside from the obvious risk to a business ’ reputation and the financial cost that mistakes in payroll cause , the most critical consideration is the protection of data .
Moore-Southafrica . com lists the need to keep payroll data secure and confidential as a top priority .
“ While there is no doubt that outsourcing payroll saves time , enables businesses to focus on their core strengths and boosts efficiency – and gives managers peace of mind that regulations like PoPIA and GDPR are complied with – company data in the wrong hands can be catastrophic ,” added McAlister .
“ The best way to minimise risk and maintain security , but also score with BPO , is to partner with the right outfit . Ask about software knowledge , about documents , how much support the outsource provider is willing to offer and system integration .” �
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