With the small business association estimating that more than 30 percent of which would not make it past two years in business, small and medium sized enterprises otherwise known as small and medium businesses comprise a major part in economies worldwide. In the US, 99.7 percent of US companies are SMEs. Given the sheer number of SMEs in the market and the recent global downturn, competition is even fiercer with the companies struggling to keep out the red. While the small and medium business owners feel that their options are limited given that budgets can be restrictive, the outsourcing presents a viable option for the businesses in order to survive without adopting drastic measures such as layoffs.
The outsourcing presents a win-win solution for SMEs to grow their business, while staying on budget, by the outsourcing an SME could realize a range of benefits. This includes and improved workflow, non-core business functions can take up a lot of time and effort and it can also eat up a lot of resource without adding a proportionate amount of value to the business. Outsourcing some non-core business functions can improve the workflow by having the outsourced partner who specialized in those functions to worry about the accomplishing those tasks. The benefit would be if it is an offshore outsourcing partner, then they can be working while they sleeping, giving the access to 24 hours of the operation, significantly reducing turn around times.
An improved customer service, keeping customer happy should be a priority within a company an d all efforts must be undertaken to ensure that this is not forgotten. In the age of the Internet and social media where customers now have numerous outlets to air out grievances towards companies, its more important than ever to be able to provide the best customer services. Whether that ‘s providing the services needed quickly or even just answering inquiries or solving problems, partnering with an outsourcing provider that specializes in providing great customer service allows to show the customer that value the business.
An increase cash flow is who would not want to have extra cash on hand to further invest, by the outsourcing some functions to a low cost outsourcing provider, it is use to those savings to upgrade the technologies, invest in a new areas or even to hire more people at the end to complement. An expanding business, by the outsourcing, it will gain more time to focus on the core activities allowing to evaluate the business and maybe even innovate it towards offering a new product or a new services.
An edge over competitors, the customer can be fickle, one minute could be on top and the next minute could be at the bottom which is why as a business it will need to take advantage of all resources available to ensure that left behind. By being able to offer services that normally would not have been able par with the relatively bigger.
REFERENCE:
http://www.blog.infinit-o.com/outsourcing-edge-small-medium-enterprises/
