With the function of outsourcing becoming synonymous with cost efficiency and competitive advantage, the organizations irrespective of their size are now looking forward to finding the correct outsourcing partner for quick turnaround, flexibility in operations, maximizing profitability. Most of the organizations, apart from the financial ones, are challenged with the arduous task of accounting and payroll processes. Survival and success in the dynamic market depends on how an organization strategizes to position its core business function, thereby leaving no luxury for managing all the peripheral services in-house. There has been increasing trends towards outsourcing the financial services for operational efficiency and flexibility.
The volatility of financial markets is a vital phenomenon that every organization wants to keep a track on. Since the markets fluctuate on and off, the revenue factor becomes variable making it imperative to plan the costs accordingly. The mechanism of outsourcing is one of the ways through which an organization can respond to the market.