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Home | Blog | Business Process Outsourcing for Small Businesses: Yes or No?

Business Process Outsourcing for Small Businesses: Yes or No?

By Magellan Solutions

Updated on May 31, 2024

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Are you an entrepreneur thinking about how to take your business to new levels of productivity? Are you looking at streamlining your current processes to strengthen brand recall to target customers? And are you exploring effective strategies like business process outsourcing to help you achieve these goals?

This article discusses numerous reasons to explore business process outsourcing and how it will propel your business to new heights.


How Can Business Process Outsourcing Help Your Small Business?

As a budding business owner, your business is probably far from smooth sailing. This is most likely true when your business faces many challenges in an economic crisis. Opening your options and resorting to strategies to mitigate potential downfalls is convenient in such cases. One way to ensure your business performs well while keeping those challenges at bay is to outsource certain non-core functions to a service provider. Below are some of the critical features of outsourcing that can benefit your business:


Cost-cutting strategy

By outsourcing some tasks, you allow your business to reduce labor costs. Outsourcing enables your business to cut employee benefits that increase payroll expenses. This allows your business to work with professionals without recurring gifts. Also, you don’t have to spend much training your employees to navigate your business. Professionals from the BPO industry are skilled enough to understand your business requirements.

Moreover, outsourcing can reduce the cost of capital expenditures, such as additional office space, computers, and software. You can save on infrastructure and material costs, which will become your outsourcing partner’s responsibility. This will allow you to budget your capital accordingly and save considerable money.

Keep in mind that you must be careful in choosing your service provider. Given the challenges in synchronizing deliverables, you may suffer from stretched delivery time frames or substandard quality output when you choose the wrong partner.


Scaled-up facilities and equipment

Outsourcing allows you to free up office space. To save up, businesses resort to outsourcing to eliminate the need to rent a larger space for new employees. Instead, they hire remote staff to make their workplace less crowded. In addition, they don’t need to provide internet service, office furniture, or equipment like laptops, as their chosen service provider is shouldering these.

In scaling up your workforce remotely, it’s best to access and overview everything your service provider does. After all, you want to get much value for your money by knowing their level of productivity during working hours.

However, outsourcing limits you to face-to-face communication which is crucial to developing solid working relationships. With this in mind, you must conduct a consultation via video calls to support positive collaboration.


Greater access to specialized talents

Relying on local talents alone can stunt the growth of your business. Outsourcing could be a better option when you can’t find skilled skills within your area.

Outsourced talents are more specialized because of their flexibility to switch from long to short-term projects while developing broader competencies. To rack up success, opt for outsourcing international skills to get an edge over your rivals.


Get your critical tasks prioritized

Organizations with a limited workforce face challenges in prioritizing essential tasks. If this reflects your current situation, then there is no doubt about outsourcing in the future. One of the many reasons why this happens is most employees focus on non-core activities. Paper works and other routine jobs consume too much time leaving employees unproductive.

Meanwhile, employees of large organizations slack off very often since non-core duties affect the completion of their vital tasks. Outsourcing can help you prioritize your critical tasks regardless of your company size. Not only does it help your employees focus more on other tasks that will help them grow, but it can also maximize your operational efficiency.


Recalibrate your business model.

Constructing your business model should not be made on a whim, as this may affect your company’s value proposition and strategies. Unfortunately, many businesses are strangers to their business model and feed their customers with inappropriate messages. As a result, businesses focus only on their processes and neglect their customers in mind.

In prioritizing customers, one must ask: what exactly am I offering to my customers? What differentiates me from the competition? What keeps my customers loyal, and what is the primary product or service I want to be known for?

Answering these questions allows you to identify a singular, non-negotiable value proposition where you can anchor your company’s strategy and core processes. In return, you can reinforce compelling marketing messages to your target market.

While this may sound complicated, keep in mind that you have the option to outsource. Again, these are just some things to consider in helping you decide whether to outsource. Identifying what’s important to you and your business is an excellent way to start.


Magellan Solutions’ Business Process Outsourcing for Small Businesses

In this new standard, outsourcing can help your business stay afloat regardless of the prevailing economic uncertainties. We’re in a long haul, and no one can predict how long the global economy can withstand present challenges. With this in mind, maybe it’s time for you to consider why outsourcing is a brilliant idea.

Magellan Solutions, a BPO company based in the Philippines, offers inbound and outbound services tailor-fit to your needs. To ensure we adhere to your expectations, our quality assurance specialists regularly check the quality of each customer interaction to deliver promised results. We also provide multilingual customer support and multiple channels for quality contact center services. Plus, we are ISO and HIPAA certified to guarantee the safety of your data.

Are you interested in getting started with outsourcing? Fill out the form below to get a free consultation.

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      Business Process Outsourcing for Small Businesses: Yes or No?

      Magellan Solutions

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