Outsourcing Companies for Small Businesses: Things You Need to Look Out For

Small businesses need big work.

The first few years are crucial in every business, especially when funds are still being raised. Business owners want to make sure their hard-earned capital goes to the right investments that are sure to reward them with growth.

Small businesses, as the name suggests, are almost always composed of a smaller number of staff that have many different functions each. While this is the norm, issues such as miscommunication, human error and mismanagement can often lead to poor services and operations. 

While efficient manpower is one of the best investments a business owner can make, there are many ways to make good use of your staffing budget. Outsourcing companies for small businesses makes sure you get the best value when it comes to business process outsourcing (BPO). By outsourcing small business tasks and functions, you can save time and funds without compromising the quality of your services. 

Say you’ve made the decision to outsource. Where do you start?

Factors to Consider in Outsourcing

There are many factors to consider, such as your business type, number of staff, services offered, industry demands and the like. It helps to take a good look at your business and its problem areas to make sure you get the right solutions. 

More often than not, many proprietors realize how the simplest tasks are often either overlooked or poorly handled. Tasks that require attention to detail such as data entry, accounts payable, bills payment and back office services are almost often at risk due to the amount of data processed in these functions. 

Good news is, outsourcing services are specially tailored to handle these tasks efficiently, which makes the best option for both your operations and your budget. Outsourcing providers recruit knowledgeable and skilled staff ready to take on your smaller business tasks to make sure everything is in the right place.

The Advantages of Outsourcing Small Business Tasks

Aside from the time and money saved, there are many perks in outsourcing, especially for small businesses like yours. Have professionals handle your day-to-day business tasks to reduce risks and save more than money.

Time Saving

The room for error is always bigger when your staff is either overworked or spread too thin. While small businesses and startups often have to make do with the staff that they have due to the lack of a bigger funding, there are always creative ways to get work done without spending too much, or risking the quality of your services. 

Having staff context switch to many different roles often gets things mixed up in your operations. An accountant doubling as an administrative assistant might not be as skilled in communicating – which is one of the most important skills for an administrative professional – and might be at risk of not relaying messages properly, or have trouble scheduling meetings, given that these tasks aren’t part of her expertise. 

Outsourcing providers offer a wide range of services that covers many business tasks. From data management to virtual assistants, these providers hire professionals with the knowledge and background to handle your tasks expertly, saving you the time and the hassle. 

Cost Effective

One of outsourcing’s best value points is its cost-effectiveness. 

While hiring in-house staff seems to be the more affordable option, you’d be surprised at how much the combined cost of hiring and housing staff will cost you, training and other development programs excluded.

When you outsource, your outsourcing provider includes training and other recruitment costs in the package rate. Apart from this, most outsourcing providers share in the responsibility of running your offshore staffing solutions with you, helping you train staff the way that fits your business and your company culture. 

Reduces Overhead Costs

Raising capital is one of the biggest challenges a small business faces. Funds are always essential, especially for keeping operations running smoothly and the services at top quality. 

Outsourcing staffing reduces recruitment, hiring, housing, and training costs. You’d be surprised how much you spend on office space alone, plus utilities. In fact, many small to medium enterprises (SMEs) have no physical headquarters, conducting business purely through online transactions. 

When your outsource staff, operational costs are included in the rates offered. You can rest assured that your funds are giving you the best value. 

The Disadvantages of Outsourcing Small Business Tasks

When a company outsources a function or process, the company hands over direct control of that function or process to a third party. As a result, it is not without its associated risks.

Poor Quality Work

While it can’t be said for all providers out there, many outsourcing providers are often unable to deliver on the quality of the services they offer. Whether it’s issues regarding recruitment, qualifications, human error and other incidental errors, not every operation is as smooth as expected. 

Every business relationship needs to be beneficial for both sides, and if you think you aren’t getting the services you’ve been paying for (the quality of service your business deserves) maybe it’s time for a switch. Make sure to choose a provider that shares your vision for your business, as well as your expectations when it comes to the quality of work. 

Loses Control over the Process

One of the pitfalls of outsourcing is poor communication. Poorly communicated instructions and details lead to errors, which may have serious repercussions for your business. Plus, due to the distance, language differences and cultural differences, it’s easy to feel like you’re losing control of the situation. 

While issues are always inevitable, you can minimize the risk of losing your processes by discussing this with your provider. Outsourcing providers want to make sure you get your money’s worth and the best quality of services. So they’ll help you track your outsourced service’s performance and ensure it meets your standards.

Miscommunication

Miscommunication may be a small error, but the repercussions can be bigger than you imagine. No business is safe from this, especially those who rely on it heavily like outsourcing. 

Having team members around the world requires clear, concise, error-free communication. Every business runs on a chain of commands, which, when miscommunicated can result in the process falling apart. Many outsourced services fall prey to this due to certain factors like technical errors and errors in human judgment. 

Make sure the chain of commands is always relayed clearly to avoid miscommunication. Develop a system to help team members confirm they’ve received instructions. And keep the lines open if you need to elaborate. The more prepared you are, less likely you are to encounter issues. 

Conclusion

Outsourcing can be a great way to reduce the strain on small businesses. But you need to be careful of the companies you choose to partner with. It’s easy to get distracted by all the competing deals as the outsourcing market grows. So carefully choose a provider who will help you grow your business and maintain smooth operations. Get quality services with a shared oversight at an affordable price with Magellan Solutions. 

TALK TO US!

Contact us today for more information.