The Myths of Outsourcing (Part 3 of 3)

Dolvin partner Optimum Solution's highlights some myths about outsourcing payroll.  Below is part 3 of 3 stories highlighting real life success stories.  Click here to learn more about Optimum Solutions.

Myth #3:  “If we outsource, it is more cost-effective”

FACT:  The true cost behind outsourcing is often difficult to predict.  Over time, a company will be faced with numerous hidden costs, fees for every report needed and price increases solely at the discretion of the outsourcing provider.  Companies will also often be presented with additional fees for W-2 filing, tax filing and printing of checks.  By bringing payroll in-house, many companies will see a return on their investment in as little as one year, as the purchase price of an in-house system is often equivalent to the company’s fee for only one year of outsourcing.   

Companies will often falsely believe that they will need to hire additional employees if they bring payroll in-house.  The truth is that the same staff responsible for outsourced payroll information can easily manage the duties needed for an in-house payroll system.

Companies are also often concerned that they will need additional IT staff if they bring their payroll in-house.  Most companies must have basic IT support in order to maintain equipment needed for daily activities.  With in-house solutions, all support and maintenance is provided directly by the vendor, and is completely automated, therefore no additional IT staff is required. 

Optimum Solutions customer:

“Before I purchased the software, I had to justify it…but that was easy to do once I illustrated how quickly we would receive a payback – we saw a return on our investment in less than two years.”

Donna Pickerill

Controller

White Hydraulics, Inc. 

Many companies have discovered that bringing payroll in-house can save a significant amount of money and receive superior support, thereby providing more value-added services to the company.  If you would like to learn more about Optimum Solutions’ full-featured in-house applications for the Windows or iSeries platforms, please contact us at 800-489-6026 or visit our website at http://www.optimum-solutions.com/ for more information.