With 42.5 million small and midsize businesses in India, over 106 million people are employed in SMBs. By utilizing advanced technologies, businesses are growing by leaps and bounds in record time. AR/VR and other developing technologies are predicted to be adopted by small businesses throughout the Covid-19 pandemic in 2022.
Why is Outsourcing valuable for SMBs?
Small and mid-sized businesses need to save time and money in certain areas to scale fast. Growth involves investing time, money, and effort and getting the right talent on board. Bonding with the new team members and fostering the culture in the company takes time. Outsourcing is valuable to SMBs, and we’ve detailed the reasons below.
Reduction in overhead Costs
Hiring a professional in-house involves financial investment. Apart from rendering salaries, provident funds, health insurance, hardware, software and other overhead costs are involved. When a business chooses to outsource, it saves on the recurring cost of employing and managing an in-house professional.
Professional Services
You can hire top professionals from any part of the country or even the globe when you choose to outsource. Your business can benefit from the expert and experienced teams’ services per your requirement.
Access to any Service
You can access any professional service for your business from around the world. An in-house professional to oversee the working of the outsourcing team is optional. This allows you to experiment with different technologies to determine what works best for your business.
Using IaaS
Infrastructure-as-a-service is highly beneficial for small and medium-sized businesses. The financial investment of purchasing or renting laptops/desktops and other accessories in the initial phase of the business can prove to be expensive. In addition, networking and repair professionals must be employed to maintain the systems.
Protection of Data and Information
Cloud computing can prove to be an expensive affair for an SMB. Since managing Cloud services is a crucial aspect of any business, expertise and security are essential. This is made possible by deploying an outsourced team. Other departments, such as finance that withhold confidential data of the company will lie safe in the hands of an outsourced team. This can eliminate the commonly seen data breaches.
Using licensed Software
Several applications, tools and collaboration platforms are required for work and communication. Free and trial versions have limited features. To work efficiently and effectively, teams in the business would require licensed software. Based on the nature of the business and the requirement of teams, multiple tools/platforms are required. This involves recurring costs. Outsourcing is a complete package where you do not have to invest individually.
24/7 Service
Businesses can cater to their customers anytime when they utilise outsourced services. Also, a business that requires to be operating 24/7 or that requires support round the clock will benefit immensely through outsourcing. Earlier it was fintech companies and hotels that required support round-the-clock. But this is changing as businesses want to cater to their customers and nurture prospects at any time.
It is always just one thing that the best company does better or differently than its competitors. This is the best way to upgrade your game or maintain your position.
Increase the momentum of business growth
Sustainable growth involves working behind the scenes. It is gradual and has to be kept in a steady line. The right mix of talent, experience, expertise and strategy is required to witness growth spurts. Businesses can gain strategic and competitive advantages with the help of outsourcing.
How to get started with outsourcing?
As a small and mid-sized business, you must follow the steps below to choose the right outsourcing partner.
Step 1 – Identify the functions of your business that require a team of professionals.
Step 2 – Brainstorm a work plan for the selected business functions.
Step 3 – Determine the amount of workforce required regularly to manage the tasks. Decide on the roles that need to be filled.
Step 4 – Decide if you have the required process for the additional resources to carry out the functions. If not, you must prepare to build the processes as required.
Step 5 – Roughly estimate the amount of money you can invest every month or in repeated cycles for outsourcing.
Step 6 – Reach out to outsourcing companies that provide your required services. Interact with them and gauge if they understand your business and requirements.
Step 7 – Get quotes from a few best companies and decide on the one that works best for you.
Summary
Financial investment must be one of many criteria for selecting a company. The expertise, experience and service quality make outsourcing services beneficial to your business. Evaluate all the parameters before you decide on the company you want to choose. Having a dedicated professional in-house to coordinate with the outsourcing agency regularly helps build a relationship and work smoothly.
