Why do Financial Firms Outsource their Transcription Needs?
It is fair to say that the financial services sector have started to move with the times and are adapting and embracing different ways of working. This includes outsourcing work to businesses that support them.
When you think of outsourcing work, we often only think about the savings that will be achieved by getting the work done at a lower cost. However, most firms overlook the fact they benefit from a wealth of other factors besides.
So, what are the benefits of outsourcing dictation for today’s financial services sector?
1. Helps You Increase Productivity
Why is Dictation More Efficient than Typing?
The simple fact is that we can all speak considerably faster than we can physically type, as demonstrated by these stats:
This means that dictation is up to four times faster than we can type.
Therefore, simply dictating a document is more cost-efficient, giving headhunters more time to be working on other projects and bring in more revenue.
Typing Yourself v Outsourcing: A Case Study
Jane is a consultant in the financial services sector. She works in London and is paid, £80,000. Her hourly salary rate is approximately £41 per hour (she works Monday to Friday, 7.5 hours days a week). However, she has no access to any support.
Jane has been asked to prepare a 10,000-word document.
Jane has two options available to her:
- Type a 10,000-word document herself; or
- Outsource that typing to a specialist transcription company.
What is the most cost-effective for the company and Jane?
To look at which is most cost-effective, we have to look at the time taken to type or time taken to dictate and the cost of transcription.
For that, we need a couple of stats: “The average person types between 38 and 40 words per minute” and a “good rate of speech ranges between 140 -160 words per minute.”
Typing the Document Herself
Jane would spend 250 minutes typing a 10,000-word document herself if she was typing at a speed of 40 words per minute, assuming she is not disturbed. Therefore the cost to her firm in producing the document would be 250 x 0.68 = £170.
However, in the process, Jane would be working less efficiently. In fact, by not dictating this document, Jane has actually lost her firm 179 minutes, meaning she would be generating less revenue for her firm.
This means that the true cost of Jane producing the document herself (cost of production + lost time to the firm) is actually £291.72.
Outsourcing the Typing to OutSec
Jane can speak considerably faster than she can type. She speaks at a leisurely 140 words per minute to aid her typist. Therefore the same 10,000-word document would take Jane only 71 minutes to dictate.
The cost of Jane dictating the document would be £48.28 to the firm. The cost of outsourcing the document production to OutSec would be £85.20. This means that the cost for the production of the document is only £133.48. Saving £36.52 for the firm. However, Jane has also gained an extra 179 minutes in working time and has saved the company an additional £121.72 in salary time, making a total saving to the company of £158.24.
However, the true value of that 179 minutes’ could be higher (imagine a scenario where a firm charges out time per hour, which is considerably higher than an hourly salaried rate).
This is solely based on just one document. Imagine the savings and increase in productivity that could occur by dictating all your transcription needs. This is why professionals have always used transcription facilities (rather than typing documents themselves). It makes profitability higher, especially where there are high charge outs (or salary rates).
2. Gives You Access to Highly Experienced Transcriptionists When You Need them
At OutSec we believe in having highly experienced financial services sector transcriptionists who have worked in finance departments, banking, accounting and wealth management firms. Indeed, we have been providing transcription services to this niche market since 2002.
Our transcriptionists truly understand the importance of client confidentiality and accuracy in their work.
This makes OutSec’s Financial Services Sector Transcription Team, one of the best in the industry and they are available to you at the touch of a button.
- having issues recruiting in your area?
- struggling to find a transcriptionist with the right experience?
- struggling with a backlog of work?
Then why not use OutSec for all your financial services sector transcription needs?
3. Reduces Costs for the Financial Services Sector
When you employ staff you have an obligation to pay: monthly salaries, PAYE costs, National Insurance contributions, offer a pension scheme and pay a certain percentage of tax per employee.
You also have other fixed costs such as desk space and office costs per employee, and the costs of infrastructure like computers, telephones, workspaces etc.
What most employers forget is the indirect costs of employment such as “unproductive” time. Recent research suggests that:
Clearly, by outsourcing your transcription needs, you eliminate any unproductive time. By using OutSec, you pay per minute of recorded dictation (rounded up to the nearest minute) which means you are not paying for any unproductive time. Therefore, you are not paying for your transcriptionist to make a cup of tea or coffee, to have or make a snack or lunch, or indeed have an office chat – all of that is eliminated!
Reduces Expensive Office Space
Obviously, by outsourcing your transcription needs, you can reduce the amount of office space you need.
According to Business Matters Magazine: “The average cost to rent an office space per person, per month is between £650 and £1,500” in London.
This means that the cost of desk space in London is therefore somewhere between £7,800 to £18,000 per annum.
Just on this cost alone you could approximately have somewhere between 6,500 and 15,000 minutes of dictation typed up by OutSec instead!
Reduces HR Costs
Hiring, training and supervising your firm’s secretarial staff can require an investment of your HR Manager’s time. There are costs involved in advertising for qualified transcriptionists. By outsourcing, you never have to worry about any of these HR-related costs.
According to the National Office of Statistics, an “estimated 141.4 million working days were lost because of sickness or injury in the UK in 2018, the equivalent to 4.4 days per worker“. The most common reasons for sicknesses were:
- Minor illnesses;
- Mental health conditions;
- Musculoskeletal problems.
Outsourcing eliminates these costs.
Whilst statutory paid holiday entitlement in the UK is 28 paid holiday days, most employers in the UK give considerably more holidays to their employees.
Clearly, by outsourcing your transcription needs, you eliminate this cost to your firm.
Changes a Fixed Cost into a Flexible Cost
Many Financial services firms recognise that replacing a static fixed cost with a flexible skilled outsourced provider has many positives. If your typing requirements are low, then the costs are low. This also enables upscaling support as the firm grows or in times when workloads are high.
Consequently, OutSec can offer support by either acting as a complete, secure, outsourced solution or as an overflow, allowing your Financial services firm to keep up with the demands of your business.
How Can I Calculate What I Could Save?
If you are interested in understanding precisely how much employing staff costs (after factoring in overheads, as mentioned above) please check out our Cost Calculator.
4. Business Continuity Planning
In 2020, businesses around the world had their business continuity plans truly put to the test, as Covid-19 swept the globe.
Whilst some businesses were forced to close their doors when lockdowns came into effect, OutSec continued to operate as normal.
OutSec continued to be able to support our clients and those that needed our help, during this difficult time. As one of our clients stated:
“We are so glad that we have you as it certainly makes it less stressful not having to worry about getting typing completed. I know some firms are really struggling if staff cannot get in”.
Using OutSec affords your firm a business continuity solution to enable your business to access typing support, that expands (or contracts) with your firm’s specific needs. You can also use OutSec for upscaling support as the firm grows, without the need for employing additional typing staff (or indeed, any of the employment costs or risks thereof).
5. Eliminate the Need for Temporary Staff
As any manager knows, the need for temporary transcriptionists or secretaries can easily fluctuate over time. We know that staff are likely to take the majority of their holiday entitlement in the summer months. Unfortunately, it is harder for firms to predict unexpected illness. We can, of course, predict that in the winter months someone may come to work with a cold (and in a matter of days, everyone has come down with it!). This is especially true for those who work in open-plan offices. Environmental factors such as snow, or other extreme weather events, can also result in staff being unable to make it into the office.
By using OutSec, you can access typists in times of absence, whether it is through illness or extreme weather, reducing the need for using expensive temporary staff to bridge the gap at a cheaper cost.
About OutSec the UK’s Leading Online Transcription Company
OutSec is the UK’s leading online transcription company whose business has grown substantially since 2002. We are one of the most successful transcription companies in the United Kingdom.
If information, data security and confidentiality are important to you, do not just cross your fingers when outsourcing your financial services sector dictation to meet your transcription needs.
Therefore, if you are agreeing a contract which deals with sensitive data, demand ISO 27001 and Cyber Essentials compliance. They are more than logos! These information security standards set the bar high. It takes constant review, challenge and action to receive and retain them. They therefore also provide assurances that OutSec is indeed GDPR compliant.
Why not open an account today. What do you have to lose?
Why not visit our Financial Division’s web page here. Alternatively, you can contact Mark Hope on 0208 123 3422 (direct dial) or 01366 348088 (via Head Office).