In the backdrop of the Covid-19 pandemic, Vietnam is seeing a rise in restrictions and lockdowns, leading businesses to adapt to the changing times of remote working, and switching to outsourcing their business processes to cut overhead costs of operations. Cutting down on resources used for in-house secretarial operations such as Accounting, Payroll and Taxes allows top level executives to focus on their bottom line and navigate the covid restrictions unscathed.
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After the promising covid-handling in 2020 and Q1 2021, Vietnam now faces a massive covid surge during its fourth wave. Vietnam’s industrial hub, Ho Chi Minh City, has now become the heart of the country’s fourth covid-19 wave, which began in late April. So far, it has documented 137,008 local cases, the most in the country. The southern city has been subjected to a series of social distancing orders, the latest of which is scheduled to be prolonged for a month commencing from August 15, according to VNexpress.
Under such rigorous lockdown and preventative measures against the covid-19, running a business in its entirety at the same operational cost has become a herculean task. To maintain a smooth operation and management, excessive overhead costs are most likely to occur. Under such circumstances, outsourcing business processes is quite efficient and budget-friendly, allowing top-level management to focus on their bottom line.
Ways Business Process Outsourcing Can Be Beneficial
Reduced Overhead Costs
By outsourcing their business processes, firms can cut their overhead by half. Major expenditures in infrastructure, software, and staff can be avoided by paying for services on a need-basis. Moreover, a business’s efficiency is enhanced by receiving professional assistance without needing to recruit full-time specialists.
Maintained Quality Standards and Effectiveness
Companies have to hire, train and provide extensive employee benefits to get a job done. And that too doesn’t ensure quality if the employee lacks talent, or is new to work, or has an old, outdated method of operation. Outsourcing these business processes to professionals instead can save a huge deal of time, and more importantly, get standard, and industry-relevant quality of work, done by veterans and experts who specialize in their respective fields.
Focus on Core Business
Every firm aspires to be able to focus on its main business rather than back-office operations. A firm can focus on proper strategic areas (customers, markets, and rivals), detect particular trends, and adapt to changing market conditions by outsourcing its business processes to specialized firms.
Increased Time Efficiency
When a business process is outsourced, a work burden is shared with the outsourcing partner. The partner will be solely liable for the timely delivery of results with maintained quality standards. This helps the company to turn ideas into concepts quickly and efficiently, and get the results launched into the market faster.
Risk Management
One underlying benefit of outsourcing is that, in the event of a natural disaster, technological difficulties, or a market shift, the firm will not be impacted. The outsourcing partner can continue to work on their projects. As a result, the firm can get back on track shortly.
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What Business Processes to Outsource:
Numerous business processes can be outsourced, including but not limited to the following:
Accounting and payroll
It’s a difficult and complex sector for most firms. To guarantee that everyone gets paid on time and fairly, specialized software and people are required. A company can save a lot of time and money by finding specialized outsourcing partners to take care of all these needs while complying with local laws.
Human Resources
There are many steering gears in human resources. It covers not just recruiting and terminating, but also managing benefits, setting up retirement programs, managing payroll, and much more. Instead of employing and training a full-time staff, consider outsourcing to a professional company that has everything built-in.
Corporate Tax Reporting and Compliance
It is an obligation in Vietnam for all companies – domestic and foreign – to comply with all applicable laws. Whether or not your firm does business and has tax responsibilities, your company should file tax statements on a monthly, quarterly, and yearly basis. For on-time filing, tax statements should be handled in a timely and accurate manner. However, a thorough understanding of business rules and regulations is required. The best way to stay on top of compliance and tax reporting without having to add a dedicated unit to it is by having an outsourcing partner.
Outsource Your Business Processes With Cekindo
Under Cekindo’s umbrella, multiple business processes can be consolidated for increased efficiency. By offering comprehensive Business Process Outsourcing (BPO) services in Vietnam, we are devoted to meeting our clients’ needs and assisting international companies and entrepreneurs in establishing and developing business operations in Human resources, finance, and marketing services. Our prime BPO services include Recruitment, Payroll Processing, Accounting, and Tax Reporting, Audit Reviews and Services, Visas, and Work Permits, etc.