In today’s highly competitive business landscape, SMEs often face numerous challenges to establish themselves, expand operations, and remain profitable. However, by tapping into the expertise and resources of specialized outsourcing partners, SMEs can unlock a host of benefits that contribute to their growth, efficiency, and overall success.
In our previous article we went over 5 common scenarios which indicate that it is time for SMEs to consider outsourcing. Now we will dive deeper and explore the key outsourcing factors that give SMEs a strategic competitive advantage and why.
1. Cost optimization
According to the Global Outsourcing Survey 2022 by Deloitte, almost 60% of companies point out the overall need to reduce costs as the primary reason for outsourcing. Outsourcing requires little to no initial capital investment when it comes to recruitment, training, everyday production costs, and infrastructure. This is especially advantageous for SMEs with a more limited budget. Consequently, your business cuts expenses while the outsourcing partner takes care of all the necessary resources for the team to fulfill their roles.
2. Strategic and operational advantages
Outsourcing gives your business both strategic and operational advantages. Lack of time and specialist knowledge are issues that can be strategically solved by outsourcing some of the tasks. Different BPO/ITO business models also allow for the flexibility and adaptiveness that in-house solutions often lack. Moreover, in a fast-paced business environment, different changes occur constantly, and this might put your company at risk. The outsourcing industry is famous for its stability and risk management, thus improving your business continuity.
Meanwhile, operational advantages include the optimization of tasks such as process streamlining and automation, as well as innovation in the form of testing and building new processes that boost operations. This ultimately gives your business a great competitive boost amid the current evolving tech landscape.
3. Access to a large pool of talented professionals
According to the Deloitte report, the biggest internal challenge for executives is talent acquisition and retention. Many SMEs make the mistake of searching for talent within their specific location(s) and thus limit their access to great experts who will add value to their business. Outsourcing, on the other hand, ensures access to top global talent with the knowledge and skills needed to deliver high-quality solutions. In fact, more people nowadays choose to develop their careers in outsourcing and in the process acquire extensive expertise in continuously improving and innovating the CX.
4. Competing with big companies
According to Zippia statistics, big companies are 128% more likely to outsource some of their operations compared to SMEs. Nevertheless, in 2022, 80% of smaller businesses indicated that they will likely start to outsource in the upcoming year. It is obvious that the access to top talent that bigger companies have is the biggest challenge to smaller businesses to be able to stay ahead of the curve and compete with industry giants. With widely available outsourcing options, this is no longer a mission impossible, and SMEs can prove themselves to be even more flexible and swift to react to market changes.
5. Improving IT and software development
Regardless of the industry your business operates in, ongoing digital innovation and automation is always a top priority. According to Deloitte’s report, IT functions are some of the most outsourced (76%) by executives as good tech specialists can be the hardest to source. An outsourcing team of dedicated professionals can keep SMEs on the offense and create a more up-to-date and functional database.
6. Partnerships and investments
New and developing companies, unlike established businesses, are generally more inclined to look for strategic partnerships and investors to pour into their business. For this to happen, they need well-developed processes, with secure operations running smoothly and frictionlessly. This can be easily achieved with the tailored solutions of outsourcing providers. They will make sure that current and potential partners and investors understand that your business is well-maintained and reliable.
7. Customer centricity
SMEs must focus on developing a more tailored customer-focused approach that most clients nowadays expect, and outsourcing partners can be the ideal fit. Their advanced digital tools and predictive analytics can help businesses truly elevate their CX game to a whole new level.
At Pontica Solutions we always put your customers first and design our solutions to address your specific needs and customer pain points. Get in touch with us and take advantage of a large multilingual pool of skillful, talented experts capable of delivering the ultimate customer satisfaction.