OUTSOURCING STRATEGY: OUTSOURCING THE FINANCE AND ACCOUNTING FUNCTION BY SMEs

Abstract

Abstract

In this study, the outsourcing as a world trend cost saving strategy in businesses will be explained. Outsourcing is strategic use of outside resources to perform activities traditionally handled with internal staff and resources. Companies are increasingly deciding to hire firms from outside the company to handle some of their internal operations, but some of the companies hire outsourcing companies for every aspect from the operational circles except its core technologies. Outsourcing can be seen as a strategic way for managing technology initiatives and business goals, strategy for managing technology operations in today’s difficult business environment, and as a way to reduce operating costs. Outsourcing succeeds when the client understands its business and its goals. Outsourcing fails when there is a lack of focus, clarity, process and procedure. The emphasis of this research is on the outsourcing strategies of SMEs, their implementation and contributions to organizational performance. In the following lines, the strategy for hiring outsourcing accounting companies by SMEs is analyzed in form of case study for SMEs operating in Macedonia business area.