Unlocking Growth: Discover the Power of Outsourcing for Small Businesses!

There’s no denying that small and medium-sized enterprises (SMEs) face numerous challenges as they navigate the complex world of business. Outsourcing presents potential solutions for these difficulties, offering an array of benefits that can contribute towards the growth and prosperity of small businesses. The real-life examples offered below illustrate the dimensions of outsourcing and highlight its potential for small businesses across industries. One prime example of outsourcing is the engagement of third-party vendors by small technology companies to manage their IT concerns. A successful example of this is the collaboration between Slack, a start-up messaging app, and Amazon Web Services (AWS) in 2017. Despite being a tech-based company, Slack recognized that managing its backend, data and server needs might distract from focusing on its core competency—providing an intuitive workplace messaging system. By outsourcing their data management to AWS, Slack managed to maintain excellent service without bearing heavy operational and staffing costs. Another example of outsourcing can be seen in the realm of customer service. Acorns, a financial technology and financial services start-up, experienced exponential growth in 2017 and quickly realized they were not fully equipped to handle their booming customer service needs in-house. To maintain a positive customer experience and easy access to help, Acorns turned to Arise Virtual Solutions—a virtual customer care service. This partnership allowed Acorns to meet its customers’ needs without the expense of establishing an in-house call center or training a bevvy of new hires. Small businesses in the manufacturing sector are also no strangers to outsourcing. OYO, a toy-making start-up that specializes in licensed collectibles, faced the challenge of ramping up production while keeping costs down. OYO turned to just-in-time (JIT) production outsourcing, partnering with companies in the U.S., Ireland, and China to produce its goods. This strategy allowed the company to increase production without the need for massive capital investment in factories or labor. Outsourcing is not just limited to these sectors. All types of businesses, from e-commerce companies to food and beverage establishments, can benefit from it. Small businesses often outsource their payroll processing and tax filing to specialized firms. This not only ensures accuracy and compliance, helping businesses avoid costly fines and penalties but also free up time for owners and managers to focus on core business issues. Alongside these examples, there are several more benefits to outsourcing for small businesses. Cost savings is undoubtedly one of the most compelling. A small company does not have to invest in recruitment and training of employees for roles that are outside its core functionality, and overhead costs are also significantly reduced. Simultaneously, outsourcing can provide access to expert talent and advanced tools that a small business might not otherwise be able to afford. It can also offer a level of flexibility, enabling businesses to meet fluctuating demand without the need for hiring full-time staff. Furthermore, it allows the in-house team to focus on what they do best—innovating and growing the business. Ultimately, whether outsourcing is right for a small business depends on the specific needs, capability, and growth strategy of the company. However, the examples above clearly demonstrate how a strategic approach to outsourcing can provide significant benefits and contribute towards continued business success.