Cat All Day OUTSOURCING CAN REDUCE COSTS - Cat All Day
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THINKING OUTSIDE THE BOX—OUTSOURCING CAN REDUCE COSTS AND SPARK NEW BUSINESS GROWTH

Cost reduction is a constant effort for every business. Our typical approach is to sharpen the pencils—and find lower-cost materials, employees and equipment. But in our most recent economic challenge, straight-up cost cutting wasn’t enough. According to industry experts including Deloitte Consulting and Accenture, outsourcing was a strategy that emerged and gained momentum. And it shows no signs of slowing down any time soon.

Outsourcing administrative tasks boosts efficiency

The first major outsourcing trend in construction companies of all sizes was outsourcing payroll and payroll reporting to firms specializing in these services. Construction projects can require complex Certified Payroll, Union, Job Cost and Federal Employment. By working with payroll companies who automate these reports, construction owners not only save the time required for data entry, but also reduce reporting errors and rework. Customized software and networking packages designed specifically for construction add to companies’ abilities to integrate information with a few keystrokes.

Outsourcing strategies reduce the cost of equipment management

Accurately costing equipment is one of the biggest challenges for construction companies. Often the cost of equipment is entered as a percentage of operating costs, so it’s not as precise as it could be. The point is you can’t know if you’re making money with a machine unless you know what it costs you to run and maintain that machine. Below are a few outsourcing strategies that help contractors deal with this problem.

How do you know what to outsource?

While the quick examples above are some of the most common outsourcing situations, yours may be different. Here are quick tips for sizing up where outsourcing may be an opportunity for your business.

Your Cat® dealer team is an excellent resource to discuss how outsourcing may bring added benefits to your business. From rental to equipment management, put their expertise to work for you.