Why are small businesses shifting to outsourcing?

Published 29 May. 2021 | 3 min read

Small businesses are on a quest for higher efficiency in operations and rapid business growth.

In our previous articles we have discussed the importance of outsourcing and its benefits to companies. It is more likely for larger companies to outsource part of their operations to keep focus on core competences. However, more and more smaller companies are now shifting to outsourcing as well.

In 2019, 52% of the small businesses were planning to outsource, according to the Clutch 2019 Small Business BPO Survey. A new Report on Clutch for 2021 showed that 80% of the small companies plan to outsource parts of their operations. Despite the main benefit of cost-efficiency, smaller businesses turn to outsourcing for additional reasons such as:

  • Timesaving and expertise

Outsourcing helps smaller businesses achieve higher efficiency without wasting time and resources on hiring and training new full-time teams. More specifically 25% of small companies outsource to maximize efficiency and therefore to be more flexible. The operational expertise that outsourcing partners bring to younger companies and startups is helping them be efficient while focusing on their core competences.

  • Growth

It is crucial for smaller companies to take the right decisions to quickly scale up their business operations and therefore grow their market and/or revenues. By outsourcing certain processes and relying on the right partners and experts, businesses grow in a faster manner as they do not spend time on training their local teams and let them focus on their field of expertise.

  • Partnership and market experience

The right partnerships could support a smaller business with outsourcing more than one business process at a time. It is also an opportunity for small companies to get help from professionals at an early stage of their development thus improving the quality of work. It is a very likely scenario where the outsourcing partner you would contract to help with your operations, already has a good portfolio and experience in the same industry.

  • Less risks

When a business is still in its development stage, having an outsourcing partner offshore could also help with minimizing and managing risks related to the business environment including competition or legal regulations in the respective country.

We at Pontica believe that having the right partner to fit your business’ culture is of great importance for achieving mutual goals. Our experts have been supporting international clients with Business Process and IT Outsourcing and if you are a smaller company aiming to scale your business, get in touch with us!

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