Outsourcing: The new success mantra for small businesses in 2023

Yogesh Pant
Mar 11, 2023


With digitalization at a peak like never before, there is a better way for businesses of all sizes and structures to maintain their expansion and growth in the online world. Many small business owners are more confident than ever before announcing their arrival on the eCommerce marketplaces. And the reason behind this confidence is the expertise of the many agencies, freelancers, and companies working as outsourcing partners. With the needs and trends of the market evolving continually, it is only essential that small businesses collaborate and connect with companies that understand not just the market specifications but also the exact needs and requirements of the business. This is where we at Mtoag Technologies come to your rescue and design and provide small business outsourcing services that will surely be a game changer for you and your venture.  

But before we start talking about the benefits of outsourcing for your business, it is first essential to understand what it is all about. Let's get started. 

What is outsourcing? 

Outsourcing is a business practice where an organization hires a company outside their setup for services or goods creation initially taking place in their arrangements. Outsourcing is, by all means, a cost-cutting strategy that boosts efficiency and maintains the nature of free market economics on a global scale. One of the biggest misconceptions is that it is only a big-scale business that needs to outsource services and goods. However, the truth remains that when small businesses or organizations choose to outsource, they are taking an active and intelligent step towards saving on their resources and enhancing work efficiency at several levels. 

Some facts and stats related to outsourcing are: 

  • ·As many as one-third of small-scale businesses outsource at least one part of their work, if not more. 
  • Almost 55% of companies globally use an outsourced team to ensure their organization's seamless and flawless functioning at multiple levels. 
  • The total money spent on outsourcing last year was 75.2 million dollars. 

The multiple advantages of outsourcing  

With outsourcing evolving as a common practice among entrepreneurs globally, its many advantages remain unquestioned and unparalleled. From payroll processing to accounting to distribution, the many benefits of outsourcing are enabling businesses of all sizes to expand their horizon by far and large. Some of the most outstanding benefits of outsourcing are: 

  1.  Cost management– One of the most significant advantages of outsourcing is that you no longer have to hire employees permanently and give monthly wages. Instead, you can hire someone or a team as and when required and pay only for the services and goods used. The added revenue stockpile can be used for better aspects of your business, be it growth, expanding the stock, or investing as per your likes and desires. Outsourcing is an excellent option for small-scale companies because they do not have to worry about payrolls, medicals, insurance, leaves, etc. 
  2.  Makes room to take up more projects– When working under a capacity of limited employees, you are bound to take up only as much work as you can deliver. However, outsourcing opens your doors to endless opportunities to kick-start as many new projects as possible. You can take up as much work as you desire and save on the hassles of interviewing, hiring, and paying employees. 
  3.  A competitive edge– Outsourcing is one of the best and most economical ways, with the help of which you can explore options that otherwise are way beyond your reach. Sitting in one part of a continent, you can collaborate with an expert in another part of the world and develop a strategy that is a sure shot to success and an excellent amalgamation of ideas and technologies on a global level. This strategy plays an imperative role in not just making your company outshine your competitors but also ensuring that you stay ahead in the competitive market. 
  4.  Focus on core competencies– Running an organization of any size can never be child's play. And even though your expertise might be in certain areas, the fact remains that a lot of qualities and expertise are required at various levels. When you attain a robust set of services and goods from a third party, you find the right means to focus your energies on your best work. This bifurcation ensures that you are doing what you are best at and that the other parts are handled by the best. This focus on the right skills by the right people is sure to create wonders for your overall work structure. 
  5.  Better productivity– Often, serious compromise can be seen in the delivery of work, either because the position lacks experience or because the team assigned the specific work is doing their work half-heartedly. The assurance that they are bound to get their pay cheques despite the quality of work they deliver might be one of the biggest reasons behind their demotivation. However, the same is not the case when it comes to outsourcing. For them, it is a new assignment and task, and they are sure to always go out of their way to deliver high-quality work, which will get them more projects. 
  6.  Reduced labor costs- The entire process can be time-consuming and highly expensive when hiring or training staff for projects, whether long-term or short-term. In many cases, getting them accustomed to your working conditions and standards can take more time than anticipated. On the other hand, when hiring an outsourcing team, you get the same amount of work done without any investment of your time and other resources. And if you are not satisfied with the quality of the work, all you need to do is hire another team to do the same position for you. 
  7.  Maintain the playing field- A lot of times, it is simply impossible for small-scale businesses to match up to the in-house support services that are available in large-scale companies. This shortcoming might be reflected in their overall work quality. When the same-scale company hires an outsourcing team, they no longer have to worry about these issues. They can be assured that even without offering the same services, they can get a large scale, efficiency, and expertise within their limited economics. 

Factors that should be taken under consideration before choosing an outsourcing company  

With the availability of cutting-edge technology and a diverse skill and talent pool, every business, from a start-up to a scale-up, has endless potential to grow and expand like never before. However, to reach your goals and make it big out there, businesses must attain the right balance between the right resources and supply. And this is where outsourcing comes to the rescue. By hiring a third party for small business outsourcing services, one finds all the right means to maintain their growth faster and broader scale than expected. But before you finalize a company or an individual for outsourcing for small businesses, the following points must always be taken into consideration:

  •   Scope of projects- Before you start looking for small business IT outsourcing, it is essential that you have a precise clarity of your needs and the kind of outsourcing services that you are looking for. Any organization needs multiple services. Look for a scalable company that caters to your changing and growing needs for the long term.
  •   An extended team– In the digital economy, the size of your small-scale businesses can grow overnight. For your company to achieve all its targets and find a more extensive client base, you must always have an expert team ready to do the work. It is best to go for an outsourcing team that can handle the various work aspects and bridges the gap between demand and supply.
  •   Quality assurance & expertiseSmall business outsourcing services primarily aim to expand your workforce without spending significantly on your resources. Therefore, always look for outsourcing teams that use the best tools and technologies and are in sync with exactly what they are supposed to be doing. Your collaboration with an expert team will surely enhance your workforce and boost your productivity.
  • Infrastructure- Another crucial factor that must be considered is the business environment of your BPO country of operations. For any organization to stay updated with the latest tools and technologies, they must be updated with the evolving technologies globally. Therefore, opt for a business-friendly overseas company with the latest telecommunications services to handle data-intensive work.
  • Cost efficiency- There is simply no denying the fact that hiring an outsourcing company is by far more cost-effective as compared to hiring full-time employees. But before you choose an outsourcing partner, be clear about your work specifications and budget. Once clear clarity has been attained regarding the quality of the service and the work expectancy regularly, there is sure to be no turning back for both parties.
  • Communication– You must have often heard that communication is the key to any relationship, but it is essential in the case of work relationships. Connect with an outsourcing company that is always available for discussion and idea sharing. Look for someone always ready to have and improve your ideas and provide you with work and solutions that further enhance and improve your work quality.
  • Compliance- Among the many qualities of a good outsourcing company, compliance is another essential feature. Your outsourcing company must comply with several aspects such as data privacy, intellectual property laws of a country, and other rules of protection for both the small-scale business owners and the outsourcing company. In ideal cases, compliance is the first factor on which clarity should be established.

Small businesses and the most in-demand IT services 

As small-scale businesses progress rapidly into 2023, most seek outsourcing services to cater to their many big and small needs. Depending on the growth spectrum, there is bound to be more demand for some services than others. With the majority of the companies focused on hiring IT services for small businesses, the most wanted services include:

  • Marketing- When we are talking about marketing, we are talking about a plethora of services closely connected with buying and selling products and services. You can use outsourcing marketing services in the following ways:
  1. Content Strategy
  2. SEO
  3. PPC
  4. Direct mail
  5. Copywriting 
  6. Social media marketing 
  7. Packaging 
  8. Email marketing 
  9. Display advertising
  • IT Support- IT sourcing is about application development, software support and maintenance, Infrastructure and data center management, and other initiatives. With digital transformations becoming the thing of the hour, the need for robust IT support is higher than ever. With many companies not being IT equipped, there is a high demand for IT services for small businesses. Some of the most prominent IT services that can be outsourced are:
  1. Infrastructure support 
  2. Cybersecurity services 
  3. Quality assurance services 
  4. Cloud migration
  5. Cloud application development 
  •   Design - This is one of the most effective ways to create brand awareness and visibility. However, did you know that many people are bound to leave your app or website if the design is not appealing and accurate information is lacking? Therefore, when you hire an outstanding outsourcing team, be assured that all these aspects and more are being handled. If you are looking for an outsourcing team to take your design and make you stand out from your competitors, then you can look for the following services:
  1. Web design 
  2. Animation design 
  3. UI/UX design 
  4. Graphic design 
  5. Product design 
  6. Packaging design 
  7. Print design 
  8. Logo design 

5 types of outsourcing 

Different types of IT outsourcing are:

  1.  Offshore outsourcingmeans outsourcing your IT functions from a company or a freelance individual based in a foreign country. The primary purpose of this outsourcing is to save on costs. In most cases, the remunerations are far cheaper than the prices in the home country. However, at the same time, it is essential to keep in mind that no compromise is being made on the quality of the work.
  2.  Nearshore outsourcing– We outsource IT work from a neighboring country when discussing nearshore outsourcing. This type of outsourcing primarily aims to travel a short distance to make the company or individual understand your needs and requirements.
  3.  Onshore or domestic outsourcing– Just as the name suggests, onshore or domestic outsourcing is all about souring IT services either from a remote location or on-site. In many business types, these are the best options as they reduce the chances of language barriers, communication, distance, etc.
  4.  Cloud computing-based outsourcing– This includes purchasing IT-related services online. It consists of the platform as a service (PaaS), Infrastructure as a service (IaaS), and software as a service (SaaS).
  5.  Managed service outsourcing– Managed service outsourcing is outsourcing a contract with a third-party managed service provider. They offer services like firewalls and virtual private networks. 

Some of the most impressive outsourcing statistics and facts 

Thanks to the ever-evolving and growing technology and advancements, you no longer have to depend on many factors to broaden your horizons and expand your growth. Elements like outsourcing allow you to get the same amount of work done within your life, within the promised time, and without jeopardizing the quality of work. Some interesting outsourcing facts and statistics that you must know about are:

  • It is estimated that 300.000 positions are outsourced every year.
  • In 2018, the global outsourcing market was worth $85.6 billion.
  • Government and defense are the two most significant outsourcing users in America.
  • 59% of businesses use outsourcing to cut down on their expenses.
  • 65% of businesses that outsource application hosting say they would increase their outsourcing efforts in the future.

Challenges faced by small business owners and How outsourcing helps small business owners to resolve their problems 

There is no denying that running a business of any size, big or small, can be a challenging task. Running a small-scale business is even more problematic as it involves doing many things for the first time. We bring you a list of some of the most challenging problems faced by small business owners in 2022 and their solutions for 2023. 

  • Financial management– It does not matter how skilled you are at what you do if you cannot manage your finances effectively. With the help of an outsourcing team, you can manage your finances and keep your books in order. 
  • Planning a better future- One of the most significant drawbacks of a small-scale business is that, as compared to a larger enterprise, their resources remain constrained. They get so busy taking care of everyday affairs that long-term planning becomes an impossible affair. But once the outsourcing teams have divided their respective workload, they can take time to develop a sustained business plan for the future.
  • Employee management- Team management is crucial to ensure the success of big and small enterprises. With the help of an outsourcing team, you can make the best use of advancements a technology to monitor not just the working hours of your team members but also maintain a record of the quality of the delivered work.
  • Diversification– In today's time and age of cutthroat coemption, merely going one way can never be the path to success. When collaborating with different teams across the globe, you are instantly achieving a high level of variety and innovations to your products and services. This quality will surely help you emerge as the winner in the long run.
  • Customer service– When you are a small-scale business, it is evident that you are working with a limited number of people. However, are these people sufficient to take care of the many essential aspects of your business? Many times, not! in today's time and age, users thrive on personalization and customizations. Therefore, exemplary customer service is an essential strategy for business building. Again, this is where an outsourcing team comes to your rescue and takes care of many verticals such as marketing, email marketing, sending messages, and keeping the users informed about sales, promos, etc.
  • Finding new customers– Customer acquisition is essential to keep your business growing and to ensure that it is on its way to a tantrum from a small business to a big one. You can outsource many marketing and advertising services that promote your brands and allows you to reach a global clientele.

The top small business objectives in 2023

All objectives are derived from expanding business and growth. Therefore, for any enterprise to achieve sustainable success, it is pivotal that they are ready with a foolproof plan. To achieve success, the following should be on their to-achieve list.

  • Grow business revenue
  • Acquire new customers
  • Improve the website traffic 
  • Build a robust team
  • Increase workplace productivity
  • Cut down significantly on expenses

Why choose to outsource for sustainable growth 

A large number of small-scale and large-scale enterprises dependent on outsourcing for their different prices and services prove the many benefits of this service. These flexible and temporary services help an organization in cost cutting, revenue building, work efficiency, and much more without compromising work quality. What makes it a good idea is the fact that you have thousands of options to choose from. And you can easily collaborate with an individual or a company that understands your needs and meets your budget. It majorly saves you from the many hassles that come from hiring teams for the many respective fields of a business. If you, as a small-scale business, are looking for the right ways to generate higher revenue, inverse your clientele, and create a global presence, then outsourcing is the right way to do so. 

In a box 

$198,550 was the average amount spent on outsourced service providers in 2022

Outsourcing: The key to the growth of small-scale businesses

2023 is a fresh start for many small-scale businesses to explore multiple opportunities and make it big. With these organizations being intelligent and informed, it will not be wrong to say that sky is the limit. One of the biggest reasons behind this confidence is the presence of sustainable outsourcing companies in many parts of the world. They know that despite the structure of their teams, they are now in a position to say yes to big projects and ensure that they are being delivered at the right time. So if you are looking for small business outsourcing services, we at Mtoag Technologies are a one-stop destination.

As some of the leading and most reliable names in the IT industry, we at Mtoag Technologies have ruled the digital domain for over 15 years. Our small business IT outsourcing services have been the force behind the success of many enterprises. However, our biggest isolation has been watching our clients grow and witnessing their transformation from successful to super successful. We consist of a team of experienced and expert professionals who understand your needs before developing the right plans and strategies. If you are looking for the right ways to completely transform your small-scale business and witness it turning into something big and successful, then we at Mtoag Technologies are the right place for you. To discover more, get in touch with us today.

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