Negosentro | How Outsourcing Functions Can Improve Your Small Business | Outsourcing business functions to third-party vendors might seem like a strategy best suited to large corporations; however, small businesses can benefit from this too. When it comes to startups and small-scale companies, there are plenty of services that are best left in the hands of professionals. For example, small business owners with no clue about building brands can employ a marketing consultant to help them get noticed, while services that require skilled expertise, such as accounting and IT, should be handled by experienced professionals. Here are a few compelling reasons why small businesses should outsource certain business functions.
Increase Your Chances of Success
Statistics provided by Investopedia suggest that only 30 percent of startups make it to their tenth year. In fact, 21.5 percent fail in the first year of business, 30 percent in year two, and 50 percent fail in their fifth year. There are plenty of reasons behind these damning statistics. Some small business owners make the decision to take a DIY approach and cut corners. Although this might seem cost-effective initially, it can lead to poor business management and bad cash flow problems. Hiring a managed services provider can help increase your chances of success by improving operations and smoothing out business processes.
Manage Resources Effectively
Although it might seem counter-intuitive, allocating capital to outsourcing services can actually help you cut costs. Taking on services that you are not familiar with can waste precious resources, while hiring an in-house team will require extra capital for labor and overhead costs. By outsourcing specific functions, you are only paying a company for the particular services you need.
Employ Qualified Professionals
One of the great things about managed services providers is that they employ specialists who are experts in their field. This means that you have access to a wide range of trained personnel. There is no need to waste time and money on the recruitment process, onboarding, or training new staff members. From day one, your company can benefit from qualified professionals who know exactly what they are doing if you outsource your services – one of the many benefits of outsourcing.
Employing managed service providers can help enhance the productivity of your business. When outsourcing routine functions that are monotonous and repetitive, you can focus your energy on core areas of business. For example, a top IT services provider can help manage your IT system, monitor your infrastructure, and resolve any IT issues immediately. They can also safeguard your company from cyber threats. By outsourcing your IT support services, you can work on other aspects of your business while safe in the knowledge that your company’s IT system is in good hands. Plus, you don’t have to hire an in-house IT expert or team; outsourcing means you enjoy the benefits of having an IT team on hand but without actually employing staff. Essentially, when it comes to outsourcing, you’re the customer in this instance.
By employing professionals who are trained and experienced, you have the chance to scale up your company faster. You won’t need to waste resources on tedious processes such as recruitment, onboarding, and training. Managed services providers can help manage your tasks effectively from day one. Not to mention, with a third-party vendor, you can easily scale your operations up or down as and when needed.