Small to medium-sized entreprises (SMEs) face numerous challenges in today’s business climate. Aside from facing competition from large companies and trying to secure a portion of the market, SMEs have difficulty finding and retaining talent. This problem with human capital can lead to understaffed operations.
Many have turned to SME outsourcing to solve this problem. Outsourcing is a business arrangement wherein you entrust one or several related functions to a service provider. Some companies go as far as to outsource entire departments in order to keep their in-house staff small.
The service provider is often based in an offshore location like the Philippines, where skilled labor is much more affordable, and the talent pool is largely untapped. The country’s service providers deliver all kinds of solutions, from simple and repetitive ones like data entry to highly specialized ones concerning IT, medical transcription, and research.
When properly implemented, outsourcing can guide your company to success. Here are some of the benefits of small business outsourcing:
It augments your operations
If you’re severely understaffed, a service provider can step in and fulfill many of the functions that no one in the comapny has the time or skill for. Accounting, payroll, bookkeeping, data entry, live phone answering, and lead generation are crucial to your company’s day-to-day operations, and so you must have a sufficient number of people who can competently attend to these tasks.
A service provider can designate an offshore team that has the capacity to accomplish these tasks for you.
It leads to drastic cost savings
Outsourcing to an offshore service provider lets you take advantage of the lower value of their host country’s currency. This gives more purchasing power, enabling you to stretch your resources and widen profit margins. Moreover, service providers often shoulder employee benefits and overhead costs. But even if they didn’t, setting up business in the Philippines is cheap – as far as Asia is concerned, the country has the most affordable office units in prime locations.
It increases productivity
Expect to see results when you start outsourcing. With a dependable service provider augmenting your operations, your company will be able to meet targets and business goals on a consistent basis. From here you’ll see progress, and you can start setting higher benchmarks for productivity.
It leads to greater overall efficiency
Outsourcing helps you streamline processes, leading to greater efficiency. Since you and your in-house team no longer have to wear multiple hats, tasks and resposibilities will be better delineated. This leads to less confusion and an opportunity to excel in the role given. It also allows you to make better use of your time and mental energy.
It narrows down your focus
Small business outsourcing allows you to focus solely on key business activities and core competencies. You’ll get to do more of what you love. You can allot the majority of your time and effort to making critical decisions for your company and strategizing for the market.
Make outsourcing work for you by hiring the right service provider. A BPO that specializes in SME outsourcing will understand your business requirements and help you achieve both short-term and long-term goals.