Single Blog

With digitalization at a peak like never before, there is a better way for businesses of all sizes and structures to maintain their expansion and growth in the online world. Many small business owners are more confident than ever before announcing their arrival on the eCommerce marketplaces. And the reason behind this confidence is the expertise of the many agencies, freelancers, and companies working as outsourcing partners. With the needs and trends of the market evolving continually, it is only essential that small businesses collaborate and connect with companies that understand not just the market specifications but also the exact needs and requirements of the business. This is where we at Mtoag Technologies come to your rescue and design and provide small business outsourcing services that will surely be a game changer for you and your venture.

But before we start talking about the benefits of outsourcing for your business, it is first essential to understand what it is all about. Let’s get started.

What is outsourcing? 

Outsourcing is a business practice where an organization hires a company outside their setup for services or goods creation initially taking place in their arrangements. Outsourcing is, by all means, a cost-cutting strategy that boosts efficiency and maintains the nature of free market economics on a global scale. One of the biggest misconceptions is that it is only a big-scale business that needs to outsource services and goods. However, the truth remains that when small businesses or organizations choose to outsource, they are taking an active and intelligent step towards saving on their resources and enhancing work efficiency at several levels.

Some facts and stats related to outsourcing are: 

• ·As many as one-third of small-scale businesses outsource at least one part of their work, if not more. 
• Almost 55% of companies globally use an outsourced team to ensure their organization’s seamless and flawless functioning at multiple levels. 
• The total money spent on outsourcing last year was 75.2 million dollars. 
  
  Benefits Of Outsourcing
  
•  Cost management– One of the most significant advantages of outsourcing is that you no longer have to hire employees permanently and give monthly wages. Instead, you can hire someone or a team as and when required and pay only for the services and goods used. The added revenue stockpile can be used for better aspects of your business, be it growth, expanding the stock, or investing as per your likes and desires. Outsourcing is an excellent option for small-scale companies because they do not have to worry about payrolls, medicals, insurance, leaves, etc. 
•  Makes room to take up more projects– When working under a capacity of limited employees, you are bound to take up only as much work as you can deliver. However, outsourcing opens your doors to endless opportunities to kick-start as many new projects as possible. You can take up as much work as you desire and save on the hassles of interviewing, hiring, and paying employees. 
•  A competitive edge– Outsourcing is one of the best and most economical ways, with the help of which you can explore options that otherwise are way beyond your reach. Sitting in one part of a continent, you can collaborate with an expert in another part of the world and develop a strategy that is a sure shot to success and an excellent amalgamation of ideas and technologies on a global level. This strategy plays an imperative role in not just making your company outshine your competitors but also ensuring that you stay ahead in the competitive market. 
•  Focus on core competencies– Running an organization of any size can never be child’s play. And even though your expertise might be in certain areas, the fact remains that a lot of qualities and expertise are required at various levels. When you attain a robust set of services and goods from a third party, you find the right means to focus your energies on your best work. This bifurcation ensures that you are doing what you are best at and that the other parts are handled by the best. This focus on the right skills by the right people is sure to create wonders for your overall work structure. 
•  Better productivity– Often, serious compromise can be seen in the delivery of work, either because the position lacks experience or because the team assigned the specific work is doing their work half-heartedly. The assurance that they are bound to get their pay cheques despite the quality of work they deliver might be one of the biggest reasons behind their demotivation. However, the same is not the case when it comes to outsourcing. For them, it is a new assignment and task, and they are sure to always go out of their way to deliver high-quality work, which will get them more projects. 
•  Reduced labor costs– The entire process can be time-consuming and highly expensive when hiring or training staff for projects, whether long-term or short-term. In many cases, getting them accustomed to your working conditions and standards can take more time than anticipated. On the other hand, when hiring an outsourcing team, you get the same amount of work done without any investment of your time and other resources. And if you are not satisfied with the quality of the work, all you need to do is hire another team to do the same position for you. 
•  Maintain the playing field– A lot of times, it is simply impossible for small-scale businesses to match up to the in-house support services that are available in large-scale companies. This shortcoming might be reflected in their overall work quality. When the same-scale company hires an outsourcing team, they no longer have to worry about these issues. They can be assured that even without offering the same services, they can get a large scale, efficiency, and expertise within their limited economics.
  

  
  5 types of outsourcing 

  Different types of IT outsourcing are:

  1.  Offshore outsourcing means outsourcing your IT functions from a company or a freelance individual based in a foreign country. The primary purpose of this outsourcing is to save on costs. In most cases, the remunerations are far cheaper than the prices in the home country. However, at the same time, it is essential to keep in mind that no compromise is being made on the quality of the work.
  2.  Nearshore outsourcing– We outsource IT work from a neighboring country when discussing nearshore outsourcing. This type of outsourcing primarily aims to travel a short distance to make the company or individual understand your needs and requirements.
  3.  Onshore or domestic outsourcing– Just as the name suggests, onshore or domestic outsourcing is all about souring IT services either from a remote location or on-site. In many business types, these are the best options as they reduce the chances of language barriers, communication, distance, etc.
  4.  Cloud computing-based outsourcing– This includes purchasing IT-related services online. It consists of the platform as a service (PaaS), Infrastructure as a service (IaaS), and software as a service (SaaS).
  5.  Managed service outsourcing– Managed service outsourcing is outsourcing a contract with a third-party managed service provider. They offer services like firewalls and virtual private networks. 

  Some of the most impressive outsourcing statistics and facts 

  Thanks to the ever-evolving and growing technology and advancements, you no longer have to depend on many factors to broaden your horizons and expand your growth. Elements like outsourcing allow you to get the same amount of work done within your life, within the promised time, and without jeopardizing the quality of work. Some interesting outsourcing facts and statistics that you must know about are:

  • It is estimated that 300.000 positions are outsourced every year.
  • In 2018, the global outsourcing market was worth $85.6 billion.
  • Government and defense are the two most significant outsourcing users in America.
  • 59% of businesses use outsourcing to cut down on their expenses.
  • 65% of businesses that outsource application hosting say they would increase their outsourcing efforts in the future.