Why Aren't More SMBs Outsourcing?

Ann All

While outsourcing has become the rule rather than the exception in large enterprises, the opposite is true for SMBs.


As we've blogged before, relatively few SMBs have tried outsourcing; research from Susquehanna Financial Group released earlier this year indicated that 48 percent of U.S. SMBs had done no outsourcing.


This despite the fact that, according to CIO Insight research, smaller businesses tend to be more satisfied with their outsourcing initiatives than their larger counterparts.


So what is holding SMBs back? According to Datamonitor, which found in a recent survey that just 25 percent of SMBs in the UK were willing to use outsourced services, expense and loss of control are SMBs' key concerns.


Fragmentation and/or market confusion may also play a role, as the research shows that SMBs had few favored outsourcing suppliers, ComputerWeekly.com reports. "The fact that many SMBs are unaware of the outsourcing options available to them may stem from vendors having previously overlooked them," says a Datamonitor analyst.


Perhaps vendors will begin to take more notice of SMBs, as AMI-Partners and other research firms are predicting they will spend more on IT this year than their larger counterparts.

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