Outsourcing key to unlocking business growth, time management: Pitcher Partners

Pitcher Partners believes outsourcing finance functions within a business to an expert can offer solutions for time constraints and performance metrics.

The firm recommended outsourcing for particular finance functions, however, said it was crucial to build a partnership with an outsourced team that became an extension of the business to ensure value was delivered and success achieved.

Frank Russo, partner at Pitcher Partners, said it was difficult to be across every element of a business’s finances to ensure compliance with laws and regulations.

“A common lament of senior managers and owners of mid-market businesses was “if only there were more hours in the day.” Outsourcing to an expert can offer a solution – it can free up valuable time for you to focus on driving shareholder value, business performance and customer engagement,” Russo said.

“It can also provide peace of mind that this complicated function is being managed by a team of specialists – providing timely reporting and ensuring compliance that is critical for business continuity and decision making.”

Russo also said most firms didn’t consider outsourcing viable based on the additional cost factor, yet noted there was value in having an external team with the depth to scale up or down as necessary.

This was attributed to the fact it helped avoid mismanagement of resources and the likelihood of employing people who lacked necessary skills or were underutilised for long periods.

“It can sometimes be a challenge for a small internal team to stay across legislative or regulatory changes and technology developments,” Russo said.

“Outsourcing to a firm can have the added benefit of access to broader technical expertise across many complementary disciplines, including taxation, technical accounting, mergers and acquisitions and digital strategy.”

In terms of building a relationship or partnership with an outsourced team, Pitcher Partners said this was a significant factor when building trust that also delivered value.

The firm recommended that anyone looking to outsource be clear on long and short-term strategic goals and growth objectives to ensure an outsourcing partner becomes part of the existing team and doesn’t create an “us against them” culture.

It was also noted that business leaders should think about what processes, practice systems and governance they want to be improved, which would aid in finding an outsourcing partner that could facilitate future success.

Russo said it was also important to define measures of success and what resources were necessary to drive those outcomes, as this would be different for every business and its individual needs.

“If you need to meet reporting obligations to shareholders, investing in outsourced services means you don’t have to worry about recruiting, training and managing an in-house team, yet all the necessary controls and processes are in place to ensure the accuracy of the financial information.”

“Theoretically, outsourcing provides many benefits when scaling up your business. This frees you up to focus on achieving strategic goals.”