More and more businesses worldwide are opting to outsource their services due to the benefits it brings them. Depending on their needs or strategies, organizations outsource either their core or non-core tasks. Moreover, outsourcing has become so widespread that it has already become more normal for an organization to outsource than not. In fact, businesses, no matter their size, make use of outsourcing.
However, did you know that businesses that have less than 50 employees are less likely to outsource their tasks compared to those with 50 or more?
According to the Time Doctor, only 29% of companies with less than 50 employees outsource.
It might be because of the lack of financial capacity a company has, which can be remedied by hiring freelancers, smaller outsourcing firms, or offshore companies.
Moreover, it is such a waste because there’s a lot of benefit small businesses can get from outsourcing.
Small Businesses’ Top Challenges
According to Neil Patel, the top challenges small businesses face are the following:
- Hiring new employees (50%)
- Increasing profit (46%)
- Employee Healthcare (44%)
- Growing revenue (39%)
- Cash flow (34%)
Outsourcing as a Solution
Those problems are something outsourcing can remedy. In fact, it’s like hitting a lot of birds with one stone.
When you outsource, you already lessen the challenge of hiring new employees because your service provider will take care of those. They do the recruitment, training, and provide healthcare to the employees on their own. For a small company or a starting one, those tasks would probably use not only their time but also a lot of their money.
Moreover, aside from the direct benefit of not hiring the employees, outsourcing also has those indirect benefits of growing one’s revenue.
When you outsource, you are also giving yourself the time to focus on income-generating tasks. This is because you and your in-house talents are not wasting your time on non-essential tasks such as accounting or HR.