Research shows that nearly 40% of small businesses outsource at least one business process. This statistics encapsulates the idea that outsourcing can bring a lot of value to small businesses.

However, it can be difficult to figure out whether your business should be outsourcing. And, if so, what processes should it look into outsourcing?

That’s why we’ve created this guide. It provides a good list of some of the most common outsourced small business functions, and details the benefits your company may experience by taking advantage of these opportunities.

So, without further delay, let’s get started.

What Small Business Functions Can Be Outsourced?

he global outsourcing market is valued above $250 billion. That’s split across a variety of business processes, including each of the functions described below.

Customer Service

Customer service outsourcing used to be reserved for larger businesses, but is now being used more often by smaller ones as well. This type of outsourcing involves hiring an external organization to process customer phone calls, chat messages, and support requests.

The cool thing about customer service outsourcing now is that you can hire companies that specialize in your industry. For example, in the past, if you had a highly technical product, it would be difficult to outsource customer service for it because there wouldn’t be enough people specializing in the product to provide good support. That’s no longer the case.

Customer service outsourcing is available in different parts of the world as well, including The Caribbean, East Asia, South Africa, and many other places. This makes it easy to find an affordable workforce that can meet both your budgeting and hours of availability requirements.

Sales

Sales is another business process your company can outsource. There are a few different ways to do it.

One option is to hire an external sales team. They’ll handle customer outreach and follow-up, and your job will be to oversee the team’s performance to ensure that it aligns with your expectations.

Another type of sales outsourcing involves hiring external sales consultants. These experts can help your internal sales team improve its performance with coaching, individual review sessions, and other types of support.

Accounting

Accounting is one of the most common businesses functions that small businesses outsource.

It can take a lot of time and energy to learn how to become an effective accountant without previous experience or training. Outsourcing this function frees up your time so you can continue focusing on what you do best, instead of having to learn a new skill that can be quite time-consuming.

There are many accounting outsourcing companies available both in the United States and outside of it. Many charge a monthly fee in exchange for assigning a dedicated team of real bookkeepers and accountants to your small business.

IT

IT is one of the largest outsourcing industries in the world – valued at more than $85 billion. There are a variety of firms that you can hire to provide technical assistance and support whenever you run into an issue with the technology that your company is using.

There are also outsourced IT firms that can build custom-made solutions for small businesses. These companies often are able to create products and platforms at more affordable rates than what you would pay to hire a full-time, or even contract IT team in the United States or Europe.

Manufacturing

If your small business sells physical products, then you may want to consider outsourcing the manufacturing of those products as well. It’s typically a much more cost effective solution than trying to handle this on your own.

Manufacturing lines take a lot of capital to start, which you may not have as a small business. There are outsourced manufacturing firms across the planet who are capable of making whatever you need, and saving you quite a bit of money in the process.

Research

Research is an underrated outsourcing opportunity that more small businesses are starting to take advantage of. It can encompass a few different tasks.

For example, there are firms that will research your target market for you if you’re just starting a new small business. They’ll help you develop a better understanding of the competitive landscape and give you some insights into what your company will need to do in order to stand out.

You can also hire consumer research firms. These firms give you in-depth information about your desired customer profile. You can use that data to make smarter decisions about the products you sell and how you market them to the public.

Human Resources

Finally, small businesses can also outsource their human resource departments. This can include a variety of tasks related to hiring new employees, managing your team, and the onboarding process, among others.

For example, many small companies work with recruiting services that help bring qualified candidates to the firm. But you can also outsource training, payroll, and many other functions that a human resources department would typically complete in house.

Understanding the Benefits of Outsourcing Small Business Functions

Now that we’ve covered some of the most significant business functions that small companies outsource, let’s take a look at the benefits of doing so. Here are five that are worth considering as you decide whether outsourcing is right for your firm.

Save Money

Perhaps the number one reason that small businesses outsource is the opportunity that it provides to save money by cutting expenses. You save money in several ways when you outsource a business function.

First, you no longer need to hire employees to perform the function. That alone can lead to tens of thousands of dollars in cut expenses – especially since you won’t have to pay for benefits for the team, either.

Also, outsourcing firms take care of all of the infrastructure necessary to run that business function for you. That means you won’t have to spend as much money

purchasing hardware, software, and any other devices that you might’ve needed if keeping the business function in house.

Become More Scalable

Another major benefit of outsourcing is that it makes small businesses more scalable. This is because you’re able to size up or size down a department as your sales numbers change.

For example, let’s say you start with 100 customers, but quickly scale up to 1,000 within the next few years. If you outsource customer service, you’ll be able to add agents instantly whenever you need more to cover the rising demand.

If you kept your customer service department in house, you would have to hire more employees to meet the new demand. This could be challenging to do if you achieve rapid growth.

Benefit From Industry Experts

It’s also important to recognize that every small business owner has their strengths and weaknesses. You may be a sales master, but struggle with HR.

Outsourcing allows you to hand off your weaknesses to teams that are experts at those tasks. That way, you get a ready-made HR solution that uses all of the best practices, instead of having to research those practices and try to come up with a solution on your own.

The bottom line is that outsourcing makes it easier to get as many experts as possible working for your company.

Reduce Risk

Outsourcing some of your small business’ core functions can also reduce risk. The main reason for this is that you won’t have to hire as many employees.

It’s much more challenging and typically more expensive to fire an employee instead of reducing the size of your outsourced team. When you outsource, you can grow and contract instantly without incurring extra expenses by doing so.

Focus on What You Do Best

Finally, outsourcing allows you to focus on what you do best. Maybe your current team is really good at sales. If so, you can outsource some of their other tasks (such as

marketing) so that the team can spend more of their time on the tasks that bring the most value back to your company.

This can help to make your small business more efficient and competitive. Put another way, you’ll be able to focus on your strengths without having to waste time on tasks that don’t bring much value back to the company.

What Functions Should Your Business Outsource?

So – we’ve covered the major outsourcing opportunities that are available to small businesses and talked about the types of benefits you can expect by using them. But what functions should your business outsource?

The answer can vary based on your company’s industry, growth trajectory, and current areas of expertise. This is why it can be helpful to speak with someone who is an expert in outsourcing as you devise a strategy.

If you’d like to do that, then consider reaching out to The Cattalyst. We have decades of outsourcing experience, and can help you evaluate your options and come up with a customized outsourcing solution to get your business to the next level.

So why wait? Get in touch with us today for a free consultation to learn more about how we can help.