Outsourcing Pitfalls Revealed: Don't Make These Costly Mistakes!

Opting for outsourcing is a strategic move that can revolutionize an accountancy firm's efficiency, reduce costs, and tap into specialized expertise. However, like any strategic decision, it carries inherent risks. What if your outsourcing efforts don't yield the anticipated results? It's not exactly a trip to jail without collecting $200, but it's a serious decision nonetheless.

When outsourcing falls short, it results in unmet objectives. This could mean failing to reach financial targets, improve efficiency, or meet quality standards. For you, it translates into a missed opportunity to elevate your business and personal goals, making the invested time and effort disheartening.

Unmet expectations in outsourcing can escalate stress and frustration, impacting your mental well-being and work-life balance. The repercussions may extend to your overall happiness in the long run.

Falling short in outsourcing can tarnish your professional reputation, potentially hindering future career prospects. I recall initiating the outsourcing venture at Moore Stephens in 2007, facing skepticism from some partners. Their doubt only fueled my determination to succeed.

Moore Stephens, now Shine Wing Australia, continues to outsource 15 years later using the same SMSF Outsourcing team I established, affirming the lasting impact of successful outsourcing. When outsourcing goals aren't met, the financial consequences can significantly impact your firm's profitability and sustainability.

In the outsourcing realm, setbacks in achieving desired outcomes have a ripple effect. To mitigate these risks, approach outsourcing with a well-thought-out strategy, thorough due diligence, and contingency plans. By doing so, you enhance the likelihood of achieving desired outcomes and avoid issues in case your outsourcing venture faces challenges.

I'm Kane from Active Outsourcing (www.activeoutsourcing.com.au), with over 15 years of full-time outsourcing experience, including starting the SMSF outsourcing team at Moore Stephens and managing the National Deloitte Outsourcing team in Australia. I'm passionate about discussing outsourcing and accountancy, so feel free to post any questions wherever you come across this.