| There are many benefits to outsourcing. But what you | | | | confidential data belonging to the company or its |
| outsource and where you outsource it too has a lot to | | | | customers can be very costly. Onshore outsource |
| do with how success you will be at outsourcing. | | | | firms are bound by U.S. law, and so are their |
| Outsourcing is commonly thought of replacing | | | | employees this means that keeping your private |
| employees with an outside company that provides the | | | | information private is just as important to them as its is |
| services formerly handled company employees. This is | | | | to you. It also means if they don't take the care to |
| done by outsource provider by using offshore (foreign) | | | | make sure that all your data is secure, you have |
| labor. These offshore outsource companies operate in | | | | recourse under U.S. law and in U.S. courts. |
| lower wage countries where the lower wages and | | | | Because that many times offshore outsources are |
| lower labor standards allow them offer services for | | | | represented by onshore firms it's more important than |
| less. | | | | ever today to find our just where they work will |
| Offshore outsourcing works well for manufacturing | | | | actually be done and how much the control the |
| processes such as assembly and for clerical services | | | | outsource provider has over those doing the work. For |
| and process like call centers. Workers can be provided | | | | example we know of some accounting firms that |
| with instructions or scripts and do not require a high | | | | have their accounting and tax data processed in India. |
| degree of supervision for the outsourcer, the quality of | | | | Under new rules the AICPA now requires accounting |
| the end product can be easily evaluated. Maybe most | | | | firms using offshore processors to disclose this |
| important of all is that the Outsourcer does not have | | | | information. The IRS also requires tax preparers using |
| to share any confidential information or trade secrets. | | | | offshore processors to disclose this information before |
| It's important to remember that agreements with many | | | | sending client work outside the U.S. |
| of these offshore outsources are not governed by | | | | Other important questions for an out-source provider |
| U.S. law and since their business and assets are | | | | are "Do you use employees or independent |
| offshore your only recourse may be through a foreign | | | | contractors?" "Are you employees located in your |
| court. This coupled with the fact that many countries | | | | offices and under the direct control of their |
| do not place the same importance on intellectual | | | | supervisors?" We have found that some out-source |
| property and privacy that U.S. courts do. | | | | firms use independent contractors working from |
| Onshore outsourcing predates offshore outsourcing. In | | | | remote locations, this makes it much harder if not |
| the early days of computers many companies large | | | | impossible for them to control access to data and |
| and small outsourced their data processing, Payroll | | | | provide adequate supervision. |
| services have also been outsources by large | | | | In conclusion outsourcing can and does save money, it |
| employers for many years. Keeping legal counsel on | | | | can also increase the level and quality of service, but |
| retainer is also a form of onshore outsourcing. Today | | | | it's important to get all the facts and choose an |
| many companies also outsource their bookkeeping | | | | outsourcing firm that offers the safe guards |
| and accounting functions. All of these functions are | | | | necessary for the job that is being outsourced. Today |
| best handled by an onshore outsourcing firm, because | | | | it is more important than ever to safe guard your |
| they allow the out-source company access to | | | | companies and your customer's confidential |
| important confidential data. Much of this data is | | | | information. |
| protected under us law and losing control of | | | | |