Is Outsourcing Worth it for Small Businesses?

For the longest time, outsourcing has been associated with large corporations that need to cut costs and improve operational efficiency. This strong association has created a longstanding myth that outsourcing is only for big businesses, but that’s certainly not the case. If anything, small and medium enterprises (SMEs) are making full use of outsourcing to fast-track growth. 

In 2022, 37% of SMEs outsourced at least one business function to a third-party provider. In the year that followed, 83% of SMEs that engage in outsourcing maintained or increased their budget for business process outsourcing. 

So, is outsourcing worth it for small businesses? Yes, definitely! Outsourcing can be a true game-changer for SMEs when done properly with a trusted provider. 

What Does Outsourcing Mean for SMEs?

Cost savings are an obvious benefit for SMEs that outsource their processes. Instead of hiring full-time staff and allotting office space and equipment, you can stretch your budget in partnering with a third-party provider. But, this is not the only benefit of outsourcing for small businesses. Outsourcing benefits SMEs beyond reducing expenses.

For instance, delegating tasks to an outsourcing partner frees up your bandwidth to work on your core competencies. Partnering with a reliable outsourcing company like AB Business Support Services allows you to entrust a wide range of functions to them instead of handling everything in-house, from finance and accounting to marketing and customer support.

Some might ask, wouldn’t quality suffer when you’re working with an outside partner? That depends entirely on the kind of partner you work with. The best outsourcing partnerships allow you to improve cost efficiency without compromising quality. Outsourcing should give your business access to specialized expertise from a global talent pool. Tapping into these superstar talents would help with efficiency and customer experience at the same time.

When Should SMEs Outsource?

While there are a lot of benefits to outsourcing for SMEs, it’s important to understand that it is not a one-size-fits-all solution. There are various factors that you have to consider before outsourcing some of your business functions or processes. Ultimately, your company’s needs and goals are a major factor in deciding if it’s the right time for you to start outsourcing.

Our experts here at AB Business Support Services are happy to discuss this matter with you and help assess how outsourcing would benefit your business. We are happy to talk it over and flesh out how we can help your company thrive faster than ever. All you have to do is message us so we can get this process started.