It’s not uncommon for people to wear multiple hats in one role for SMEs and startups. A business’s infancy calls for flexibility, maximizing each employee’s abilities. However, doing so isn’t sustainable and will inevitably cause burnout. Fortunately, all of that can be solved by outsourcing.
Gone are the days when outsourcing was viewed as a strategy for large enterprises only. Nowadays, small businesses are also reaping significant advantages by leveraging outsourcing, making it a viable option that frees up time for core business tasks.
A study done in 2019 reported that 37% of small businesses outsource at least one business process. What’s more, 52% said they foresee their business being outsourced in the future.
INTRODUCTION TO OUTSOURCING
WHAT IS OUTSOURCING?
Outsourcing is simply transferring specific functions to a third-party provider, such as Business Process Outsourcing (BPO) firms, agencies, or freelancing individuals. These providers, sometimes called outsourcing partners, specialize in specific tasks or services.
Despite its recent popularity, outsourcing has been a business practice for three centuries already. Its humble beginnings during the Industrial Revolution enabled American factories to go beyond their geographical limits and explore cheaper options for labor and materials.
In modern times, outsourcing has expanded into the digital space. Large enterprises, such as Fortune 500 companies, conglomerates, and even small to medium enterprises (SMEs), all leverage outsourcing for the same reasons businesses did during the 18th century.
Aside from cost savings on labor and services, outsourcing is now viewed as a strategic partnership rather than a transactional one. Outsourcing has had a major facelift in the past few years, but it still isn’t in its final form. Projections say the industry will be more innovative and lucrative in the near future.
Outsourcing opens an avenue of opportunities that would otherwise be hard to achieve. Here are some highlighted perks small businesses can enjoy through outsourcing:
Focus on core business activities
Access to specialized skills
WHAT ROLES ARE COMMONLY OUTSOURCED?
TYPES OF OUTSOURCING
Outsourcing is a broad term that can be classified into three categories, each targeting different areas of operation and offering unique benefits. Therefore, having a clear understanding of these variations is essential.
In this type of outsourcing, companies seek providers within the same country.
Pros and cons of onshoring:
Nearshoring means finding outsourcing companies in neighboring countries, typically within the same continent or time zone.
Pros and cons of nearshoring:
OFFSHORE OUTSOURCINGThis involves partnering with outsourcing providers located in a different geographic region, often on a different continent. This model has been a significant driver of globalization and offers several distinct advantages, especially for small businesses.
Pros and cons of offshoring:
IS OUTSOURCING RIGHT FOR YOU?
SELECTING THE RIGHT OUTSOURCING PARTNER
MANAGING OUTSOURCED TASKS
THE REMOTE GROUP SUPPORTS OUTSOURCING FOR SMALL BUSINESSES
The Remote Group is a leading provider of outsourcing services for businesses of all sizes. To date, we have helped small businesses worldwide thrive through our services. We are their partner in scaling their business and streamlining their day-to-day activities.
Tell our experts what you need, and we’ll help you get started on your outsourcing journey today.