Growth For Small Businesses Through Outsourcing

Small Business Growth
You need to be wise when outsourcing to actually gain these great long-term benefits.

Check Internal Processes Before Outsourcing

There are some key elements to create an effective outsourcing relationship, from recreating some of the internal processes that will remain in-house to establish steps and procedures for the processes to be outsourced. You also need to be able to manage areas around these outsourced functions and build a strong communication channel with your BPO partner.  

Outsourcing is the practice of hiring outside companies to handle processes normally executed in-house. This is now a familiar concept to all entrepreneurs, they outsourced from payroll to distributions and marketing. Most times because they don’t have any other choice, their company is too small to have an in-house distributions department with vehicles and personnel, because to have one would be really expensive. Even the large companies are outsourcing to lower costs and grow faster.

This increase in the demand has changed the game, making entire industries evolve to serve the companies’ outsourcing needs.

Not all businesses fully recognize the benefits that can come with outsourcing. Outsourcing can help you save money, but this is not the only reason and it’s not the most important one ether.

Outsourcing can be a way, sometimes the only one, for experts to execute some functions or processes needed to make your business a thriving one.

Too much outsourcing can be also harmful, you can lose control of your company if your core activities and functions are not handled in-house or if you don’t have a good and efficient process established to get feedback from your customers.

You need to be wise when outsourcing to actually gain these great long-term benefits:

Cost Control 

Lowering cost should not be the only reason to outsource, but it certainly is a major benefit.

When you manage to lower your costs you release capital to invest in making your business grow. This will also allow you to maintain your business free of debt; your company will become more attractive to investors because your own business will be capable of moving capital into revenue-producing activities. 

Never Lose Focus of your Core Business

Small businesses tend to have limited resources and every manager has limited time to execute and overlook the entire company’s functions. Outsourcing can help your business manager to have enough time to focus on the core activities of the business, you won’t have to stay always focused on the peripheral activities because these will be the responsibility of your outsourcing partner, all the processes and functions will also have standards and measurement process to review your BPO partner performance. Having these responsibilities taken off your back, will provide you with the necessary time to focus on core activities, the ones that will make the business get to the next level.  


Most companies that try to do everything by themselves have higher expenses in most of their processes or departments, and all these high expenses are passed to the customer. But when you outsource you lower your costs and make your processes more effective, they are highly executed and measured, to guarantee the best result for your company.

Having a highly effective company is an important competitive advantage that will set you aside from the competition.

Lower Labor Cost 

The process of hiring and training staff can be very expensive. Also if you hire short-term or temporary employees to perform seasonal tasks or projects, they don’t always fit the expectations due to lack of time to properly train them.

By outsourcing some processes you leave these hiring and training responsibilities to the experts, outsourcing partners have a broad expertise in hiring and training high quality agents to execute the needed tasks and functions.  And the cost per agent is lower than the cost of an in-house employee.

New Projects

Most outsourcing companies have the resources to start any project you need right away. These is not always possible when handling new projects in-house, starting and executing e new project could take weeks even months, you will need to hire new personal, train them provide equipment, work space and support, making it hard to achieve; and when these projects require major capital investment, the startup process can be even harder.

When outsourcing you have at your disposal all the workspace, high-end technology and equipment, the best agents and the expertise to ensure the full development and execution of the new project you need to take into action.

Go Further

Outsourcing can provide your business with the possibility to act “big”. Providing to your customers high quality service, improving your business efficiency and providing your company with the expertise of a large company.

Lower the Risk

These days’ markets, government regulations, financial conditions, and technology all change very fast. This is why every business investment has a certain amount of risk. When outsourcing your BPO partner is assuming and managing the risk for you, these companies have a wide range of expertise in avoiding risk.

Take a deep look into your existing processes and functions, identify the areas that could use some improvement and the areas you need to cover to get better or to execute a new task, with these in mind find the right outsourcing partner to take advantage of the endless possibilities they can provide your business.

Sure these can be a life changing decision to your business, so research every BPO company that gets your attention, ask for budgets and choose wisely to assure the growth of your business and the benefits BPO has in store for you. 

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