A company's administrative tasks can actually make or break a company, depending on how intact and efficient its processes are. Handling processes is not easy since the pressure of keeping the company stable is always there; it may not be visible and felt all the time, but it is always kept in mind by the people who run a company. The pressure, the demands, and all of those attached to running a company's administrative tasks are surely tiresome, which is why outsourcing companies are becoming more popular these days. Under the big umbrella of outsourcing, a wide range of company processes are encompassed; there is the human resource, or recruitment process, outsourcing, virtual assistance, and finance and accounting outsourcing. It is quite known to most people that the industry of outsourcing has many categories under it, finance and accounting outsourcing is no exception. Finance and accounting outsourcing covers anything under a company's Finance department; general accounting and accounts receivables and payables and everything in between. As the demand for human resource and finance and accounting solutions rises, the companies continue to develop their capabilities to meet the market's demands.
Finance and accounting service providers are now employing different strategies to attend to their clients, as well as to gather more clients. ADP (NASDAQ:ADP), an outsourcing provider of human resource and payroll services, caters to big businesses but with the current developments in their service offerings, they are now able to cater to small and medium-sized enterprises. After seeing that their developments have attracted a new set of clientele, the US-based payroll outsourcing solutions provider projects an increase in their client portfolio from an estimate of 380,000 in 2010 to 440,000 by the end of their forecast period.
Another outsourcing company that expanded to address the increasing demand for payroll outsourcing solutions is Ceridian Corporation. The expansion by Ceridian Corporation was in line with its partnership with SuccessFactors Inc. (NYSE:SFSF) to integrate solutions being offered by both companies. The partnership between Ceridian Corporation and SuccessFactors Inc. began in 2009 and two years into the partnership, they have decided to provide their clients with a suite of solutions that can further optimize human resources and payroll management capabilities.
On another note, it is not only companies who seek the assistance of outsourcing solutions providers, even local government units also seek the advantages and benefits service providers offer. Recently, Lancashire County Council has engaged in a deal with BT Global Services (NYSE:BT) for the latter's IT services. Such IT services intend to cover back-office functions, such as human resources, payroll and procurement and customer service support for the county's local authority and local educational facilities. However, a new set-up in the industry will be established in order to provide the services needed. Such set-up involves a new company, One Connect Limited, which will provide the necessary set of solutions for Lancashire County Council. One Connect Limited is 60% owned by BT Global Services while the remaining 40% will be owned by the council.
Financial and accounting outsourcing companies, as well as human resource service providers, are creating solutions today that are aimed at different areas, tapping as much areas in the market as possible. As seen above, solutions providers are now targeting small and medium sized-enterprises, entering into partnerships with software providers and lastly, they are engaging with local government units.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.