Plunge Into Success with the FTE Model of Outsourcing
May 18, 2023
Outsourcing has become an increasingly popular tool for businesses worldwide, including Accountancy Firms. With increasing work volumes, skilled staffing issues, and cost pressures, more firms are turning to outsourced help to Experts Resources, elevated quality, enhance efficiency, minimize operating costs, and boost profits. However, not all firms find success with their outsourcing arrangements, often due to selecting the wrong outsourcing model for their specific needs.
Sunil Goel, Founder President of SandMartin, an experienced outsourcing veteran, emphasizes the importance of aligning the chosen outsourcing solution with the firm’s business strategy, size, volume of work to be outsourced, and service delivery expectations.
In this article, we will explore the Full-Time Employee (FTE) outsourcing model, which is gaining popularity among innovative players in the accounts outsourcing industry like SandMartin in India. We will examine how a leading London-based accountancy firm has experienced a successful outsourcing partnership with SandMartin by adopting the FTE model and the benefits and challenges associated with it.
The Traditional ‘Hourly Model’ of Outsourcing
The traditional ‘Hourly Model’ of outsourcing has inherent limitations when it comes to volume outsourcing. Challenges such as resourcing problems and longer turnaround times (TAT) can arise due to the lack of a fixed team. This model can be unsuitable for firms with a large volume of work to be outsourced and may lead to inconsistencies in quality and delays.
The Evolution of Outsourcing to the Full-Time Employee (FTE) Model
Recognizing these limitations, innovative players in the accounts outsourcing industry, like SandMartin in India, are evolving to address these weaknesses. One such solution gaining popularity is the Full-Time Employee (FTE) model. The FTE model offers the advantage of a fixed team, fostering a strong rapport and ensuring effective outsourcing relationships. This, in turn, results in better service quality and a more profitable outsourcing model. The knowledge of the dedicated team members instills confidence in the output.
Client Case Study
Client, a leading London-based accountancy firm and recipient of prestigious awards, has experienced a successful outsourcing partnership with SandMartin. Their success can be attributed, in part, to their persistent pursuit of a model that gives them a competitive edge over their peers.
Client initially adopted the hourly model for outsourcing their accounting work to SandMartin over 10 years ago. However, as their business grew and demanded more outsourced work, they
encountered limitations with the hourly model. This led them to reevaluate their arrangements with SandMartin, ultimately implementing the FTE model.
The Managing Partner of Client highlights that the FTE model offers greater control over outsourcing operations. They plan the work of each FTE assigned to their projects, managing it over a 4-week cycle. SandMartin’s Job Tracking Portal further assists in monitoring the status of each outsourced job.
Cost-effectiveness and work utilization are key considerations for the FTE model. The client has achieved greater cost control and effectiveness through this model. To maximize the benefits, proper planning, system implementation, and clear communication channels are necessary within the firm.
Integration and Flexibility
The team of FTEs at SandMartin has become an integral part of Client’s operations, seamlessly integrating with their systems and procedures. Processes like time and billing are directly managed by the Indian team, contributing to a smooth workflow.
If the volume of work exceeds expectations, Client can quickly expand their team by adding more FTEs from SandMartin’s available resource pool. This flexibility saves time compared to recruiting new staff members independently.
Quality and Consistency
Addressing concerns about quality consistency, SandMartin emphasizes the importance of the selection and interview process in reducing the chances of a bad hire. They also highlight the availability of expert staff and their broad catchment area in Mumbai and Delhi NCR, ensuring access to top-quality resources.
SandMartin follows a managed solution approach.
In conclusion, the FTE model is a new dimension to outsourcing relationships that accounting firms in the UK should consider. Failure xto do so may lead to unsuccessful outsourcing relationships.