Reduce Business Costs by Outsourcing to Low-Cost Countries: Bangladesh – A Strategic Solutions

reduce business costs
Author: Shibli zaman | October 3, 2024

As businesses face increasing pressure to stay competitive, reduce business costs has become essential. One of the most effective strategies for cutting business expenses is outsourcing certain functions to low-cost countries like Bangladesh. By transferring non-core but essential activities—such as Accounting & Bookkeeping, Payroll Management, Financial Reporting, Business Setup Services, Hiring Services, and Accounts Receivable/Payable (AR/AP) Management—companies in high-cost regions like the USA, Australia, Canada, the UK, Japan, and the UAE can significantly lower their overall business costs.
Outsourcing to Bangladesh offers a great opportunity for both large and small businesses to streamline their operations and reduce operating cost. SRCO’s services can help your company minimize expenses while maintaining efficiency and quality. This article will explore how outsourcing to Bangladesh can be a cost-saving strategy and how SRCO can help your business achieve these goals effectively.

Why Outsource to Bangladesh?

Bangladesh provides a significant advantage for businesses looking to reduce their overhead costs and fixed costs through outsourcing. With its lower labor costs, growing professional expertise, and improving business infrastructure, companies in industries like finance, human resources, and operational management can effectively implement cost saving and cost reduction strategies. By outsourcing to service providers like SRCO, businesses can adopt efficient reduction strategies that minimize administrative business expenses while maintaining high-quality standards. These partnerships allow companies to optimize their operations and realize savings without compromising the quality of work, aligning with international standards.

Key Business Activities to Outsource

Outsourcing allows companies to transfer specific functions to experts in Bangladesh while they focus on their core business. Here are the key services businesses often outsource:

  • Accounting & Bookkeeping: Routine financial record-keeping and transaction tracking.
  • Payroll Management: Handling payroll processes, ensuring tax compliance, and managing employee compensation.
  • Financial Reporting: Generating essential reports that provide insight into the company’s financial health.
  • Business Setup Service: Assisting foreign businesses in setting up operations or establishing a legal entity in Bangladesh.
  • Hiring Service: Recruiting skilled professionals at a lower cost for various roles.
  • AR/AP Management: Managing cash flow by handling payments to suppliers and collecting payments from clients.

 Cost Comparison Across Countries

Let’s look at the cost comparison for some key designations across various countries:

Designation

USA

Australia Canada UK Japan UAE

Bangladesh 

Accountant

$65,000

$60,000 $58,000 $55,000 $50,000 $40,000

$12,000

Bookkeeper

$45,000

$42,000 $40,000 $38,000 $35,000

$30,000

$6,000

Payroll Manager

$70,000 $68,000 $65,000 $62,000 $55,000

$50,000

$10,000

Financial Analyst

$80,000

$75,000 $70,000 $68,000 $60,000

$55,000

$15,000

AR/AP Specialist

$50,000

$48,000 $45,000 $42,000 $40,000 $35,000

$7,000

HR/Recruitment Specialist

$60,000 $58,000 $55,000 $52,000 $45,000 $40,000

$9,000

From this comparison, it’s evident that outsourcing to Bangladesh can lead to savings of up to 70% for certain roles. For instance, hiring an accountant in the USA can cost a business around $65,000 annually, while outsourcing the same task to Bangladesh would cost just around $12,000 per year. Similar savings can be observed in other roles like payroll management and AR/AP handling.

The Value of SRCO’s Services

SRCO offers a wide range of services that cater to the outsourcing needs of businesses, helping them reduce costs while maintaining efficiency. Here’s how SRCO can support your business:

  • Accounting & Bookkeeping: We manage daily accounting tasks such as data entry, transaction tracking, and financial reporting, ensuring accuracy and compliance with international standards.
  • Payroll Management: Our team ensures timely payroll processing, including tax deductions and employee compensation, allowing you to focus on other areas of your business.
  • Financial Reporting: SRCO offers detailed financial reports that help you understand the financial status of your business, make informed decisions, and ensure compliance.
  • Business Setup Services: For companies looking to expand, we handle the entire process of setting up operations in Bangladesh, from legal requirements to logistical support.
  • Hiring Services: We recruit and manage qualified professionals at a fraction of the cost in developed countries.
  • AR/AP Management: Our efficient AR/AP services ensure that your cash flow remains smooth by managing collections and payments effectively.

Strategic Benefits of Outsourcing

  1. Significant Cost Reduction: The primary reason companies outsource to low-cost countries is the substantial savings in labor costs. SRCO can deliver the same services offered in high-cost regions at a fraction of the cost.
  2. Scalability: Outsourcing allows businesses to scale up their operations without having to invest in additional infrastructure or full-time employees.
  3. Improved Focus on Core Competencies: By outsourcing non-core activities like bookkeeping and payroll, companies can focus on their core business strategies, product development, and customer service.
  4. Access to Skilled Professionals: Bangladesh has a growing pool of professionals trained in international standards of accounting, finance, and HR management. SRCO’s team of experts is equipped to handle complex business functions efficiently.
  5. Regulatory Compliance: With an in-depth understanding of global tax laws, payroll regulations, and financial compliance, SRCO ensures that your business remains compliant with all legal requirements in both Bangladesh and the countries where you operate.

Conclusion

Outsourcing key business activities to low-cost countries like Bangladesh is a highly effective cost-cutting measure for businesses seeking to streamline operational efficiency and reduce unnecessary expenses. SRCO offers a better deal to companies looking to reduce their labor costs, recurring expenses, and spending on non-core operations. With services such as Accounting & Bookkeeping, Payroll Management, Financial Reporting, and Business Setup, SRCO can help your company manage its business operations more efficiently, leading to significant cost savings.

By outsourcing with SRCO, businesses can achieve up to 70% cost savings compared to hiring professionals in high-cost regions like the USA, Canada, the UK, Japan, and the UAE. This translates into higher profit margins by reducing recurring costs, including travel expenses, labor, and inventory management.

Focusing on core business activities while outsourcing non-core operations enables companies to cut down on unnecessary expenses and optimize their operational efficiency. Let SRCO handle your back-office operations, reducing your expenses and allowing you to concentrate on driving growth and maximizing profits.

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