Q&A with Cheryl A. Borelli, director of operations, RCM Technologies.

by Jeff Bizzack

RCM Technologies is a leading provider of information technology and engineering solutions, serving the commercial and government sectors for more than 35 years. With more than 1000 clients, RCM Technologies is a principal provider of comprehensive solutions for customers across many industries, including aerospace, distribution, financial services, government, healthcare, insurance, manufacturing, pharmaceuticals, technology, telecom, and utilities. With 37 offices across major North American markets plus strategic nearshore and offshore partnerships, its payroll tax filing needs are complex. In this interview, Cheryl Borelli, director of operations, discusses the company’s reasons for outsourcing payroll tax filing and the importance of service excellence.

JB:  What factors led RCM Technologies to outsource payroll tax filing?

CB: Payroll tax filing is very complex. There are multiple jurisdictions, rules and regulations, and ever-changing tax rates. It is a very complex and difficult challenge to keep track of all the changes. To be able to handle payroll tax filing internally, you really need to have specialized expertise, and it can be very expensive to attract and retain the tax filing experts who can make it function efficiently. RCM Technologies strategically chose to outsource our payroll tax filing operations to benefit from the specialized expertise of our outsourcer. Our current outsourcer was able to provide us with these specialized services in a very cost-effective manner.

JB:  What criteria did you use to shape the process for selecting your service provider?

CB: We focused on two criteria, both geared towards service. The first was fundamental. We initiated a detailed search for providers who could provide the services we needed. Since we had decided to process payroll internally, we were looking to partner with a firm who would just meet our payroll tax filing needs. There are several large firms who provide a full range of payroll service, but there are not many outsourcers who will offer their services on a functional basis and just handle payroll tax filing. It proved to be a greater challenge than we had anticipated—to find a provider that was willing to do exactly what we needed. The second criteria we found essential in our search was the ability of the provider to deliver on the promise of service excellence.

That is the key to a successful relationship.

JB: You recently changed service providers. What led you to transition to another provider?

CB: We wanted a payroll tax filing outsourcer who could provide more personal, hands-on service tailored to our specific needs. It was important for us to find a service provider that would partner with us and consider RCM Technologies an important account. RCM is a large company, but we still treat our people with the care and intimacy of a small company. We wanted a service provider who would meet the needs of our company and our people in a similar manner.

JB: Were you concerned about the transition to a new service provider?

CB: You have to plan every step in the transition process, and you must have non-stop communication. Our new service provider set the stage early and eased any concerns we may have had by sending their customer service team to meet with us at our offices in New Jersey. They developed a project plan and explained everything we needed to do in detail. Their professionalism and attention to detail only reinforced our comfort level. Throughout our transition they continued to communicate with us and advise us on how to improve our process, everyone on our team was very positive about the transition process.

Overall, we felt that our outsourcer did a phenomenal job transitioning our payroll tax filing process to their client service team and technology platform.

JB:  From a management perspective, what are the signs that an outsourcing provider may be slipping in its commitment to providing service excellence?

CB: It is a straight forward process to identify the signals that may lead to service problems. You can tell on a day-to-day basis. I will know that there is a breakdown in service when I call the provider and do not get a timely response to my questions. When the communications process begins to breakdown, the level of service will surely deteriorate soon after.

JB: If you were called by one of your peers in the industry and asked for advice on selecting a payroll tax filing outsourcing firm, what would you say?
 
CB:  I would tell them to seek out firms with deep, professional expertise. You want to work with firms who are the experts in the field and really know what they are doing. You must be confident that they will deliver on their commitment to service excellence. Additionally, you must feel comfortable with the service team that will work with you on a day-to-day basis to ensure they are a good match for your firm. In the end, however, you must ensure that the team set in place will be backed up by the technology and processes necessary to meet your needs.