Benefits of IT Outsourcing for Small Businesses in a Time of Digitalization

Posted by InterVenture on August 27, 2019

Much has been written about IT outsourcing and its benefits in terms of big business. But what about small-to-medium enterprises (SMEs)? Digitalization continues within the workplace, and change and innovation seems to occur at an ever-increasing rate. Digital transformation is high on the global business agenda, therefore, with 85% of enterprise decision makers working within the understanding that they have just two years to adapt to digital changes before they risk falling behind their competitors.

Changes to market regulations have made things difficult for SMEs in recent years, and markets have become uncertain, meaning that, in order to survive, small businesses need to adapt to current conditions and become more competitive. IT outsourcing has offered this to large enterprises, and it can do the same for SMEs. It is just one component of the digital revolution, of course, but it is a crucial one, particularly to those operating in Eastern Europe and in Serbia for whom nearshoring (outsourcing to a neighbouring country) represents an excellent option, with a number of clear advantages.

1. Access to a Global Talent Pool of Professionals

The global talent pool is, of course, larger than a local one. Scarcity of suitably skilled homegrown talent can be an issue, and cybersecurity has, in particular, been cited as an area in which there is a skills gap. Needless to say, there is a plethora of talent abroad, and nearshoring, in particular, means that those professionals will share commonalities in terms of culture and outlook, too.

2. Save Time

One of the biggest benefits of IT outsourcing is the amount of time that will be saved. Outsourcing means that some convoluted processes can simply be designated to professionals elsewhere, and those precious minutes saved can be spent on developing the business as you wish to. Other business areas which an SME can potentially outsource include finances, marketing, customer service, and human resources.

3. Reduce Costs

Staff expansion can be more expensive than nearshoring, even where it is possible. The process of hiring can be costly and more convoluted, whereas once an IT service provided from abroad is in place it requires minimum management. As well as money saved on employees, it saves on training, equipment, and software – these funds can then be ploughed back into the business in order to increase its competitive edge. An SME can expect to see immediate start-of-project savings when outsourcing their IT needs, especially since most companies offer monthly subscription services which are extremely competitive and easy to budget.

4. Shift Your Business Focus

Once time is saved, costs are reduced, and gaps in talent are filled, then an SME can refocus and redirect itself towards its top priority: being competitive. A business’s core is its individuality – what it can offer over and above its rivals. Too often, a small business may lose sight of this in the face of stiff competition and a dog-eat-dog world. Some things just should not be outsourced, and these are those elements which give an SME its originality and values. Outsourcing allows more space in which to focus on this.

Moving Forwards

Small-to-medium enterprises should not hesitate to move forward, however. Digitization is happening, and it is happening now. Before committing to a provider, however, issues such as cybersecurity and regulatory compliance should be checked; but with nearshoring, once again, these are more likely to be suitable and already in place. A service level agreement should also be made. Big businesses are, of course, already reaping the benefits of IT outsourcing, and SMEs can cash in on this, too, but they must act now if they are to remain competitive.


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