Reasons Local Outsourcing Gives Small Businesses the Advantage

by | Apr 30, 2019 | Business Feature

Whether you’re planning to create the next big tech unicorn or want to be the hottest author since J.K Rowling, you’ve doubtlessly had to grapple with the many challenges that face small enterprises. Getting full-time help is expensive, you can’t be everywhere at once, and you only have so much money to throw at a problem before your little operation goes bust.

Thankfully, times are quite different from how they were even just a decade ago.  The outsourcing community, in particular, has become more mature and is better able to meet issues that plague small businesses in the Philippines. Here are a few reasons why small Filipino businesses should consider outsourcing:

1.) It lets smaller businesses focus on their core competencies

Many labor-intensive tasks don’t directly affect the bottom line, but nonetheless, remain essential for the day-to-day functioning of an organization. Depending on the type of business, such tasks may include IT, payroll, security, and housekeeping among many others. In many cases, outsourcing these non-core tasks will allow a business to keep a keen focus on what it does best, preventing it from becoming bloated and distracted from its main objectives.

 2.) Outsourcing allows you to keep your team small

Keeping staff numbers optimal can be a challenge, especially in situations where the demand for your product or service can fluctuate wildly. This means that there may be extended periods of time where you’re paying employees but are unable to have them generate any income for the company.  While this is not necessarily a bad thing, it’s a situation few small businesses can afford.

SME’s can get around this issue by getting outsourced professionals to handle excess demand. This allows the business to pay only for the output produced, rather than for the employee’s hours. This makes them a good way to temporarily increase an enterprise’s capabilities during critical periods.

3.) Specialized expertise on demand

The Philippine outsourcing community is home to some of the most experienced professionals in the world. Given the country’s status as a provider of quality outsourcing services to the rest of the world, there are tens of thousands of highly-skilled freelancers that have honed their skills serving different foreign markets, using the latest techniques and technologies.

What’s more, there are locally-based freelancers and consultants with extensive experience in virtually every field imaginable, from web and industrial design, to aerospace engineering and IT security – and beyond. If your business needs to have access to a certain type of expertise, chances are the local outsourcing community has the people you need.

 4.) It allows better use of limited capital

The vast majority of startups in the Philippines have a capital outlay of less than P100,000 pesos.  Even a P1,000,000 capitalization doesn’t give a startup much room to work with.  With the cost of living and labor going up across the board, it’s important to spend any capital you have wisely.

Going with an outsourced team can help you do just that by reducing both labor costs and equipment acquisition expenses. Freelancers and agencies take care of both of those things for you, allowing you to focus purely on metrics and output, rather than dividing your attention with the many other miscellaneous costs of doing business. With most single-proprietor startups, outsourcing may, in fact, be the only way to effectively use your resources and use your strengths to their full advantage.

Sites like connect you with the best freelancers in the Philippines. Check them out and find out what a difference they can make for your SME’s growth.


Share This