The AP function is the most frequently outsourced process in the finance and accounting departments of organizations. While it is an essential part of operations, it is a non-core business activity that requires extensive and expensive work. This is why outsourcing this part of an organization’s operations will be not only a tactical move but a strategic one.
Not everyone approves when healthcare organizations outsource their human resources and systems, knowing that their primary concern is always the safety and protection of the patients in their care, as a single mistake may put their welfare at risk.
Outsourcing wasn’t formally recognized as a business strategy until 1989, but businesses have been outsourcing ancillary services to external suppliers even before. With industrialization bringing about specialization of services and an increase in demand for such—outsourcing has become the solution.