SMBs and the Outsourcing Opportunity

Ann All

Almost half of all U.S. SMBs have never outsourced any business activities, according to Susquehanna Financial Group. But a growing number of them are considering it.


And why not? A key benefit of outsourcing, touted by the likes of GE, is how it can free up valuable time and resources normally spent on routine tasks for more strategic activities. No one benefits more from this kind of focus than the leaner organizations typical of SMBs.


What's more, SMBs tend to be more satisfied with their outsourcing initiatives than their big business counterparts, possibly because their requirements tend to be less complex.


So, how exactly do SMBs determine if outsourcing is right for them? Asking themselves five questions, as suggested in this PC Magazine article, is a good start. The article also encourages SMBs to consider working with small local tech support firms that may be a better cultural fit for them than either an offshore firm or a big domestic provider.


A CIOUpdate columnist suggests that SMBs should employ a decision-making process that involves many of the same considerations as their larger brethren. What are you trying to accomplish and why? How will you determine success? How important are these outcomes?

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Nov 21, 2007 6:46 AM Raza Imam Raza Imam  says:
Great post. We're seeing more and more SMB's deploy an offshore strategy (most VC's won't even consider funding a portfolio if they don't have one) The trick again is finding a company you can trust. Tech skills are a commodity and are easy to find. Finding a reliable partner is near impossible. Sadly, the ones that have the most to gain with outsourcing also have the most to lose.Raza Reply
Jun 5, 2009 2:43 AM Sonal Maheshwari Sonal Maheshwari  says:

@Ann: Even within span of two years the number of SMB's outsourcing should have increased to a considerable amount. But till date the companies are not ready to outsource hampering their growth and eating up their valuable resources.

@Raza: What SMB's should consider is that there are many tier 2 service providers who can provide them quality work, the only point being how to locate them. There are many other issues such as IT governance as well. Keeping all of them in mind SMB's should move ahead.

A good article on IT governance for SMB's

Sonal Maheshwari



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