The practice of outsourcing is not new, and many organizations know the advantages of outsourcing business activities. Several large companies like Google, Skype, Alibaba, GitHub etc utilize the outsourcing model with the objectives of minimizing operational costs and improving productivity. Small businesses are also now keen on enjoying the advantages of outsourcing, to propel the growth of their business and expand more in this fast-paced world. By utilizing reliable BPO services, small businesses can use their every spare of minute productively. It helps them delegate repetitive and monotonous work that requires no personal touch to the outsourcing partner, and focus on challenging business activities that require their personal attention.
Why Small Businesses Choose to Outsource
Outsourcing enables small businesses to get more important things done with the help of professionals without having to use their in-house team. Thus, small businesses can keep their costs under control and also improve the efficiency of the business team by assigning them tasks that require their ability and capabilities. Experts say that the success of a business depends on delegating and outsourcing. Delegating is much simpler than outsourcing. Delegating is nothing but finding someone from the organization who has the business owner’s back and assigning certain tasks to them whereas outsourcing is challenging as there are several factors like industry standards, their experience etc. to consider. The success of outsourcing depends on outsourcing the right functions to the right partner.
Functions That Can Be Outsourced
Small businesses can outsource the following functions:
- Bookkeeping and accounting: There are various processes, tax payments and related procedures to understand, compliance standards to meet etc with regard to accounting. These are difficult to comprehend if you are not a financial expert.
Accounting is one area that has a lot of room for human error if the calculations are hurried. Therefore, accounting is one of the most common functions that is outsourced to professionals who are good with numbers and can provide error-free accounting and financial statements. This helps to improve efficiency and save money.
- Marketing: Small businesses will eventually start growing and expanding. With a proper marketing strategy, customers will get to know the value of their products and services. Outsourcing the marketing needs of your small business to professional services helps to execute an effective marketing plan to attract new customers, and retain existing customers while ensuring business growth. Outsourcing marketing helps small businesses with ad design, social media posts and content creation. Trained and skilled marketing professionals will also have expertise in and knowledge of what strategies will work and what will not work.
- Sales: Generating more sales helps to improve return on investment. You need skilled staff who can make effective sales calls, or implement processes focused on closing deals. So, to increase sales, small businesses can consider outsourcing to sales experts who have a unique set of skills. They make sales calls, create sales work flow, close deals, and help to bring in more business.
- IT Management: Just like accounting, IT management is also one of the functions that is outsourced to professional vendors. This is because IT systems and management require good knowledge, including software integration, security and troubleshooting among others. They also help with on-demand service for ongoing maintenance or urgent issues.
- Customer services: Dealing with customers is one of the most important aspects of any business. Good customer service means better sales. Businesses may not have the time to chat or interact with all the customers. Therefore, customer service can be outsourced to call centers that can provide clear instructions, clarify customer queries, and ensure excellent customer services overall.
- Logistics and transportation: Businesses can either have their manufacturing facility or a logistics services deliver products directly to the customers. By outsourcing logistics to a third-party vendor, you need not worry about transportation and related hassles. This ensures valuable savings in terms of time, and also ensures on-time delivery.
- Human resources: Human resources outsourcing is another function that is often outsourced to professionals. They help businesses with recruiting new candidates that are suitable for the organization. They focus on implementing effective human resources strategies, resolving any HR issues, and improving services to employees.
- Market research: Understanding what your customers want and knowing the market trends are important for any business to grow. Outsourcing to a professional market research team allows businesses to know what customers are looking for. This team conducts surveys and focus group interviews, and chats with customers to gain valuable insights regarding the customers as well as the general trends. This helps businesses with new product launch.
- Administrative work: Virtual assistants are not new today, they greatly help businesses with several administrative tasks such as scheduling appointments, organizing files, etc. With today’s technology, virtual assistants can work for their client business remotely from their home. Their service is affordable and helps businesses to stay organized and focused.
- Manufacturing: Out of all functions, outsourcing manufacturing is expensive and so many small businesses hesitate to outsource it. However, outsourcing manufacturing functions to an on-shore company helps to minimize cost and also keep your operations nearby. Outsourcing manufacturing functions to a reliable vendor is a great way to meet increasing demands, lower labor cost and encourage innovation.
As the business starts expanding, companies will opt for outsourcing to promote innovation, access new skills and reposition the company in the market. For small businesses, outsourcing to a reliable provider of BPO Services is an opportunity to work with experts and professionals, and improve efficiency and also save costs. In addition, you can manage risk to a great extent.