Virtual Assistant Business Outsourcing

If you’ve recently purchased gasoline, bought groceries or tried to sell your home, you know the U.S. economy in 2008 is in less than fantastic shape.  Leading economic indicators show America’s institutions that provide financial services are suffering as much or more than the real estate industry.  Financial services like banks have increasingly turned to downsizing and outsourcing to reduce their cost commitments.  Financial services are a paperwork intensive industry that is looking for cheaper ways to perform these activities, such as using a virtual assistant or outsourcing company.

Banking Provides A Cross-Section of Our Falling American Economy

A good example of the United States economy and the current banking crisis is the saga of Wachovia Corp., the 4^th largest U.S. bank holding company by assets.  Wachovia reported amended 1^st quarter losses of $708 million and has written off some $7 billion in assets.  The nation’s largest savings and loan, Washington Mutual, has written off over $9 billion this year.  Although some economists and government figures underestimate the scope of the problem, oil prices at $140 a barrel will certainly damage the U.S. economy more than the optimistic observations in the Economic Report of the President.  To put a finer point on the issue, American Express CEO Kenneth Chenault recently stated, “business conditions continue to weaken in the U.S. and so far this month (June 08) we have seen credit indicators deteriorate beyond our expectations”. 

Bankers Find Help Outside Their Walls

As these institutions struggle to reduce capital costs and gain budget flexibility they increasingly rely on outsourcing, in this field sometimes called Knowledge Process Outsourcing, to handle many of their administrative tasks.  A sound economic analysis of their payroll expenses has caused many financial services to outsource certain tasks to third parties.  Typically, banks and other financial services outsource areas of Finance & Accounting such as:

• Bookkeeping/accounting
• Accounts payable/receivable
• General ledger accounting
• Customer order processing
• Payroll

Technology Widens Capabilities of Virtual Commuters

Advances in technology have given the outsourcing industry the ability to perform more complex and important functions.  Two such areas are forms processing and data capture & entry.  Data capture and entry is the process of getting data into application processing systems.  Innovative technology now allows a virtual assistant to convert large volumes of hard copy and image-based forms into fielded electronic formats. 

Outsourcing Grows Beyond Menial Tasks 

The combination of staff reductions and technology advances has allowed financial services to outsource important work at a much cheaper rate.  The battered economy has led many in the financial service industry to reevaluate their employment practices.  Instead of being “top heavy” in management, now financial services have the option to outsource vital assignments.  Outsourcing solutions to the financial services sector now include:

• financial project management
• planning & budgeting
• project monitoring
• analysis of financial data

As global economics evolve, so do the capabilities of outsourcing services.  The type of endeavors that are now sought demand that outsourcing services have a perfectly clear understanding of client applications, associated hardware and software and all ancillary equipment that is used to help support client requirements.