The global construction industry has been registering a steady growth rate for the last many years, with projects becoming more complex and challenging. The widening gap in the demand and supply of skilled manpower is prompting many construction companies to outsource their services such as financial report preparation etc. The construction industry around the world is growing at an average rate of 3.9 percent every year, which is expected to continue until 2030, according to reports. The severe shortage of skilled hands, limited budget and the lack of interest in construction jobs are some of the factors why companies opt for outsourcing.
Outsourced staffing is expected to continue in the coming years to fill the need for qualified engineers, architects, consultants and construction workers especially among small and medium enterprises. A 2015 global construction survey showed that 87 percent of large organizations opted for outsourcing to support in-house project teams. As construction projects become more complex and challenging companies outsource an increasing number of tasks to external firms ranging from task execution to management of contractors and schedules and much more.
India has emerged as an outsourcing hub for construction companies around the world in recent past. Some of the common services outsourced include accounts receivables and payables, custom management reporting and profitability analysis, Building Cost Estimation, electrical construction estimate and much more. Construction related companies, contractors and developers avail the service of outsourcing companies to migrate large and complex projects within a short time frame.
The high competition in the industry coupled with escalating costs of operations has all made it difficult for construction companies to stay ahead in the race and that is where outsourcing helps. Construction companies face the challenge of handling hugely complex projects and operations in recent times. By depending on manual and non-standardized systems, the cost of operations and the turn-around time will go up manifold, which makes the business projects financially nonviable.
Benefits of Outsourcing Financial Report Preparation for Construction Companies
Operational Efficiency: Outsourcing companies have trained manpower and expertise in helping you to standardize back-end operations to ensure optimum results and growth. Companies can even choose to outsource all the applications involved in the project life cycle starting right from the design right up the completion and maintenance or choose to outsource specific modules as per their needs.
Flexibility: We offer flexible solutions to suit the needs and budget of the companies and ensure quality service and the best value for money. Most companies typically outsource back office functions like accounting, payroll, data entry and other services that involve a lot of manpower and effort. Businesses that are located in high rent areas or facing labour shortage will all find outsourcing really effective in keeping the operational costs under check without compromising on quality.
Most of the back office operations of construction companies like accounting or auditing require unique knowledge and skill and outsourcing companies can ensure specific services that will add value to your organization. Companies can outsource their non- core operations and enhance cash flow, cut down the workload on your team and streamline business processes. Some of the common services that can be outsourced include financial statement reporting, preparing monthly job schedules and audits among others.
The biggest advantage is the time factor advantage while outsourcing services to India. Construction companies in US and Canada can submit their work at the end of the day and when they are in office the next day, the reports will be ready in their mailbox. This will ensure that no time is lost while processing the details.
Some of the Outsourcing Services for Construction Companies
- Financial report preparation
- Revenue recognition analysis
- Managing cash flow
- Draw request process
- On-time and overrun performance analysis
- Setting up operational metrics
Industry analysts predict a steady growth in outsourcing in construction sector for many years not just to bridge the gap between the demand and supply of skilled employees but also in other areas like HR departments and talent pool management.