Once upon a time, money-saving ventures such as outsourcing and offshore company formation were viewed as risky investments that didn’t pay off. However, present day-to-day business goings have shown us that outsourcing is something that more and more businesses increasingly turn towards too. But, out of all types of business, it is small businesses that mostly benefit from outsourcing.
Business owners, especially owners of small to medium-size businesses know better than to spend their preciously valuable time on tasks that can easily be outsourced to third parties. As owners of SMBs (small to medium-sized businesses), it is their main objective to focus on their business’ growth, rather than to focus on easy to manage tasks. It is precisely the point why outsourcing has worked a lot for small businesses, and it is a trend constantly on the rise.
Outsourcing is a business model that has been tested in the past and proven to work. But nowadays, since the validity of such a business model is proven to work to a great extent, it has become the norm for SMBs.
In 2018, the entire outsourcing industry was worth $85 billion. But in order for the industry to grow, it needs to evolve.
In this article, we are going to tell you about some of the areas where outsourcing can be used by SMBs, and how it can benefit them.
1. Data Security
Data security is a field in IT that is gaining a lot of attention lately. This is due to the fact that up to 70% of SMBs have been targeted by cyber attacks, and nearly half of them close their doors once an attack has occurred.
SMBs don’t have the manpower, or the financial power, to combat cybercriminals on their own. It is precisely the point why outsourcing data security needs can help SMBs. If you’re interested in finding the best IT service to outsource your security needs, click here.
2. Tailored Outsourcing
It has been proven to be a logistical nightmare for businesses to try and manage multiple outsourcing suppliers. Apart from being gut-wrenching, it is also very costly to outsource different IT needs to different suppliers. It is precisely the point why vendors might turn their attention towards more centralized systems by 2023. If this comes into action, IT support companies might need to start expanding their departments, as opposed to being specialized in a specific IT field.
3. Cloud Technology
Cloud technology is making incredible strides to try and be the dominant way of computing. With so many services allowing SMBs to host their data online, it is a trend that has made huge efforts in 2019. The International Data Corporation has predicted that nearly half of all IT spending will be put into more private and public cloud servers by the end of 2023. However, if we are to put all of our eggs into the cloud technology basket, then more attention needs to be put on cybersecurity.
4. Social Responsibilities
Millennia’s, and Gen Z’s in less than a decade, prefer to do all of their online and physical shopping with socially responsible companies. This has caused the emergence of a new type of outsourcing called Socially Responsible Outsourcing (SRO).
With SRO, companies can reap the benefits by employing socioeconomically disadvantaged workers from the current pool of around 240,000 employees worldwide. With more and more people falling into this category exponentially, this might become the new norm in the next decade or so.