Outsourcing for the SMB

Ann All

Some SMBs have shied away from outsourcing -- and particularly offshoring -- thinking that they can't afford it.


However, as this Business Edge article makes clear, SMBs are great candidates for outsourcing. If there is any business that needs to zero in on its core competencies, it's a startup. Not only that, but SMBs likely lack the staff to attend to necessary but distracting tasks like payroll or Web site development.


And it stands to reason that SMBs would want to enjoy some of the same financial benefits of outsourcing as their larger peers.


Where there is a need, a new business model will be created to fill it. Enter middlemen or brokers who conduct offshore talent hunts for the SMBs that often lack the time, funds and expertise to do so themselves.


Another highly affordable option for SMBs: virtual businesses that provide a variety of services for $30 to $70 an hour. The director of marketing for the International Virtual Assistants Association pegs the number of such businesses at 1.5 million worldwide.

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Add Comment      Leave a comment on this blog post
Apr 24, 2007 2:41 PM Peter Horsten Peter Horsten  says:
This is absolutely true. We can notice a similar trend in Europe. But, because it is getting harder and harder for SME's to catch up with all the new technologies, it looks like this is going to change. These companies are very often too small to hire good IT-people themselves. So they will have to think about outsourcing, or may be even better, offshoring.In our market the bad experiences with outsourcing to India dominate the discussion about offshoring. Talking to a client, we can hear this story almost all the time. In most of the cases this is about one (even small) project that they (or someone they know) tried to outsource to India. For sure that they did not define their functional and technical needs very well. And afterwards they were disappointed because of the bad result. They were just not ready for outsourcing to my opinion.Outsourcing requires that you think carefully about your needs. And that is one of the main challenges for SME's. They are used to a more organic way of developing things. After the first ideas they start coding the application. Outsourcing forces them to think twice. And if they do so, you can also hear the positive stories. The SME's that have successfully outsourced their IT abroad manage to achieve the mentioned advantages in the article. They invested time, knowledge and energy to create a new working relation with people working abroad, they changed their own way of working. And in this way they managed to gain competitive advantage! Who will follow? Reply
Nov 21, 2007 2:01 PM Raza Imam Raza Imam  says:
SMB's can benefit immensely from outsourcing. But with offshore vendors popping up all over the world, more and more companies are getting burned when going offshore. The key to avoiding 'software sweatshops' is to focus on high value, not low cost.Raza Imamwww.software-sweatshop.com Reply
Jun 5, 2009 8:15 AM Sonal Maheshwari Sonal Maheshwari  says:


That is exactly what SMB's really require. They don't need Tier 1 Companies to offshore, instead they look for tier 2 and tier 3 companies across the globe which can provide them quality work with some surety. They also require to identify their needs and a consultancy in it can also prove to be very helpful so as to list the proper requirements in front of vendors. Looking for all this at one place is a difficult task. I know a company which provides solutions to all this and hence avoiding overheads for the SMB's. I got the feedback about this company from people in my network and they were really satisfied with the work done by them. I really suggest to contact them once. Its a must for any SMB looking for IT needs and Solutions


Sonal Maheshwari.


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