Why SMBs Should Consider Local Outsourcing

Small to medium sized businesses often face plenty of challenges, both good and bad, but wouldn’t it be great to be able to have all the negative challenges avoided. While this may be a little bit of wishful thinking, there are certainly ways in which SMBs can mitigate a large portion of the usual difficulties – this is done through outsourcing. Outsourcing is simply the process of handing off certain business (or IT) processes to a third-party provider by engaging in a business partnership – the customer usually pays a monthly fee, and the third-party provider managers certain business processes for them. An example of this would be TechQuarters, and the outsourced IT support London based businesses partner with them for – they offer a number of different levels of services at different price points, depending on what their customers need outsourced, and what their budget is.

When most people talk about outsourcing, they generally think of offshore or nearshore outsourcing. These are two types of outsourcing where the third-party service provider is located in a different country – a distant country in the case of offshore, or a country that is either geographically, temporally, or culturally close to the customer. But in the case of SMBs, the best type of outsourcing would be local.

What is Local Outsourcing?

Unlike the previous two examples Local outsourcing is dependent on the third-party service provider being geographically close to the customer – in most cases, to get the main benefits, the outsourcing partner should have physical proximity to your business (i.e. in the same town, city, or local region). So, what are the benefits of local outsourcing for small to medium sized businesses?

Better Cost Control

If an SMB manages all their business and IT processes themselves, that means they have to preside over all of the research, development, marketing, and distribution workloads, and as a result the expenses. This all equates to additional costs that a company may be forced to pass on to their customers. However, an outsourcing partner benefits from the economy of scale – in other words, an increased level of production usually leads to proportionate cost savings, and outsourcing partners can pass these cost savings onto you, the customer.

Lower Labor Costs

If you’re a very small SMB, developing a department – for example, your IT department – means spending time and money hiring staff, training them, and managing their holiday pay, sick pay, etc. This is one of the reasons why the IT Support Services London Solutions partners like TechQuarters provide are in demand – the economy of scale and their wealth of IT experience means they can offer the same level of service, and usually more, as an SMB could achieve from building an in-house IT department, but for a fraction of the cost.

Initiate Projects Easily

One of the challenges that many SMBs face is allocating labor resources for projects in such as a way that they are not compromising their daily processes. As a result, many businesses end up hiring and training new personnel in order to manage processes. However, a good outsourcing partner will have the personnel and resources to initiate projects for their customers right away. On the other hand, an SMB might want to outsource daily management of certain business or IT processes to their partner, and manage projects in-house.

Focus on Core Objectives

Some business processes may feel like distractions from core objectives that help a business make money, find new customers, or make profitable business partnerships – for most businesses, these are their core objectives, and many business processes are in aid of supporting this, but don’t directly contribute to them. By outsourcing these types of processes and workloads to a partner, a business can dedicate their core staff and resources to manage their core objectives.