Out·sourc·ing, n. – the procuring of services or products.from an outside supplier or manufacturer in order to cut costs.
Should You Outsource Your Reimbursement Plan?
Outsourcing – Out·sourc·ing, n. – the procuring of services or products.from an outside supplier or manufacturer in order to cut costs.
The driving force behind the decision to outsource is the power it gives your company to focus on its core competencies: delivering quality products or services. Outsourcing allows your company to redirect its focus to revenue-driven processes instead of behind-the-scenes administrative functions by opening up the doors for your company to access top-level professionals in its non-core areas. Thus, your company reaps the benefits of state-of-the-art technology and industry-defined best practices, and can stay up-to-date on compliance and legal issues, all without sacrificing the expertise and efficiency of your company’s services.
Outsourcing has been a valuable strategic management tool for decades. In today’s highly competitive and ever-widening global marketplace, outsourcing can give your company an “edge” over organizations who fall into the economic trap of “Jack-of-all-trades, master of none”. Realistically, expertise is limited to a particular field; it is highly unusual to find an individual – or even a group – that can be self-sufficient and competitive in each area. In other words, it is virtually impossible to hire in-house “experts” in every field necessary to run a company. Outsourcing, however, allows your company to utilize the experts while maintaining focus in its primary (product or service) field. This, in turn, creates more flexibility and opportunity for your company to move forward: in an economy rich with mergers, divestitures, and new business launches, outsourcing can help your company stay “nimble” to better manage business change.
Another issue facing companies and small to mid-sized organizations in particular is increasing dependency on key employees. The more reliant your company becomes on an individual (such as a benefits manager or HR director) for “expert” knowledge of services, the more risk your company takes on. In the event that such a key employee should terminate employment – whether for re-location, retirement, or personal reasons – your company will face not only re-hiring and training costs, but potentially a significant period of “lag” time before the new employee can reach the level of expertise and profiency of the previous employee. Outsourcing prevents this sort of co-dependency and additionally will eliminate any concern of HIPAA (privacy) violations.
SUBHED: Outsource With myCafeteriaPlan!
myCafeteriaPlan is a licensed Third Party Administrator (TPA) providing innovative solutions to your company’s unique reimbursement plan needs. myCafeteriaPlan has been providing employers and their employees with the Power of Options since 1991, and is committed to bringing the highest quality service and administration to your new or existing plan.