With competition, there is an immense demand for the streamlining of operations in order to keep profitability high. The pressure to improve efficiency and keep costs at low level is precisely why there is advent of outsourcing as a formal business strategy. The resulting benefits bring about a reduction of risks and boosts innovation.
What is Outsourcing?
Business Process Outsourcing (BPO) is the contracting of business process to external third-party service providers. Through this avenue, businesses can economise certain internal and back-office functions by assigning the responsibility to outside service providers that are equipped with the resources and capabilities to specialize in those functions.
The primary motivation behind outsourcing is to economise back-office functions and enhance overall business flexibility. By outsourcing back-office functions, businesses can focus their resources in their core competencies, dedicating and investing their key resources in activities that are more integral to their commercial success. Moreover, by utilizing the specialized skills of BPO service providers, organizations can increase and improve the speed and efficiency of their output enabling them to grow at a much faster pace. The resulting cost and profit benefits speak for themselves.
Fund Accounting Outsourcing
Fund managers in the western countries outsource their non-core activities to focus more on strategic decisions, achieve greater organizational flexibility, improve efficiency and reduce overheads. The trend of outsourcing has increased globally as it is a very powerful tool to leverage talent, improve productivity and reduce work cycles.
With the success of this concept, ITMinds has started providing Back office accounting services to the Mutual Funds Industry of Pakistan which is backed by state of the art software developed and maintained by our in-house development team. We have recruited the best team to provide innovative accounting and back office services to our clients.
Benefits of outsourcing Back office functions
- Asset Management Companies will be able to focus more on their core functions and strategic decisions
- Increased clients’ confidence through independent NAV calculation and reliable data management
- No hassle of software development and maintenance
- Reduction in cost of fund management operations including HR, IT and premises
- Data Confidentiality
- Effective and Reliable Disaster Recovery plan relieving the client from worrying about such details