What is Outsourcing and How Do Small and Medium-Sized Companies Handle It?

What is Outsourcing and How Do Small and Medium-Sized Companies Handle It?

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Small and medium-sized enterprises (SMEs) should make use of their strengths. Instead, they often engage in operational activities that they do not enjoy or understand. How to avoid this problem? And how can small businesses compete with multinational corporations? The answer to the question is the outsourcing of marketing, business, or customer service.

Small and medium-sized enterprises must benefit from their main advantages

There are disadvantages that almost every SME faces.

Entrepreneurs often have limited opportunities to employ professionals, especially in administration and management positions. They seldom encounter favorable conditions at first, and the amount of work often grows over their heads. They can wave goodbye to the economies of scale and often dispose of limited resources for promotion and advertising.

Thus, SMEs should primarily use their strengths. They can achieve this through outsourcing, which according to the literature, uses the 5 main advantages of SMEs.

Flexible response to changes

Flexibility can be the main competitive advantage of small and medium-sized enterprises. Companies are not burdened with investments and no radical interventions are needed to change the core of business activity or production program. Multinational and large corporations often cannot afford to respond flexibly to change, enabling SMEs to benefit from market changes.

Innovation

In small and medium-sized enterprises, the door to innovation is open. Innovation goes hand in hand with the ability to respond flexibly to change. In addition, anonymity is lost, employees understand the meaning of work and feel the importance of their own actions. Employees are more flexible, motivated, feel more satisfied with their work, and are able to exchange high incomes for a pleasant working environment.

Creating new job opportunities

Small and medium-sized enterprises have a simple and clear organizational structure. They play a key role in creating new jobs, influence social stability and economic development.

Resilience to the economic recession

Small and medium-sized enterprises tend to be more resilient to the economic recession precisely because of the ability to react flexibly to any changes in the market. They often make use of the period of recession, as they see it as an opportunity.

Speed of making business decisions

A minimum of owners and their direct participation in the management of the company allows for a faster decision-making process.

Another advantage is also the direct contact of staff with the company’s management. This makes it easier to build a relationship of trust because it is easy to recognize the personal issues of employees.

Outsourcing: How to ensure professional work in each field?

Is there a solution at all for securing professional work results in key areas such as marketing and sales, not to mention customer support or assistance?

Undoubtedly, multinational corporations benefit from the fact that they can employ up to hundreds of thousands of people (for example, in 2018, Citigroup had 204,000 employees). Outsourcing of marketing, business activities, customer support or administration, and flexible response to changes can give small businesses an advantage over corporate companies. How is it possible? Just discover the beauty of virtual assistance!

How to delegate a.k.a. external employee is cheaper

The existence of SMEs often depends on wage growth, rising inflation, and the growing burden of bureaucracy. By delegating work, it is possible to get rid of administrative tasks, plus, you get to outsource the assignment in question to an external and at the same time cheaper employee.

In addition, SMEs often do not take full advantage of or cannot afford some marketing and business specialists. It is not worthwhile for them to hire a full-time employee to handle complaints, secure orders, or act as the first filter for communication with customers. Unfortunately, most companies are still unaware that professional work can be done without dozens of employees who cost a fortune.

How to delegate? Try virtual assistance and see the benefits for yourself.

  • Thanks to a team of different experts, small businesses will acquire a large set of skills.
  • A good virtual assistant is fast, reliable, and works without excuses.
  • Thanks to the 100% substitutability within teams, companies do not have to deal with the absence of an assistant during holidays or sick leave.
  • And above all, it is cheaper than a full-time employee. Especially thanks to the specialization, full utilization, and volumes of work. In addition, the company does not pay for insurance or cover his holidays.

Be a solid competition to corporations with myTimi

Does outsourcing really have such an impact on a business? At myTimi, we have gained a certain set of knowledge during the period of our operation.

Why outsource customer service?

  • It increases customer satisfaction by up to 40%.
  • It reduces internal labor costs by up to 90%.

 

Why outsource marketing?

  • Usually, revenue from these channels increases by 50 percent or more.
  • Companies will get employees who can flawlessly and repeatedly translate the strategy into real practice.

 

Why outsource finances?

  • Thanks to debt collection, the financial balance improves.
  • Companies really save a lot of time and worries, as this is often an unexplored issue for them (invoicing management is not always necessarily a full-time agenda, as it usually takes only a few hours a month).

 

Why outsource business activities?

  • Small and medium-sized enterprises will get rid of the despised activity, which, unlike previous efforts, will start to bring them results.
  • At myTimi, we usually arrange several meetings a week and we will be able to increase sales by up to 30%.

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