Why (and how) SMEs are outsourcing work

Being able to outsource work overseas is an incredible tool. For small businesses, having specialised skills on hand to handle any problem is a godsend when you are wearing so many hats. Additionally, outsourcing can be a great way to build your team when you’ve got limited financial resources, as is the case for many SMEs.

While many people believe that outsourcing is purely for Virtual Assistant and admin work, you would be surprised at the types of jobs that you can have outsourced. For example, our BPO has team members working on skyscrapers in New York, estimators working on your local shopping centre, web developers, designers, and road developers. The options are honestly endless. 

So here are the reasons why businesses are choosing to outsource, and how you can do it well.

Reasons why small businesses are outsourcing

Trouble finding local talent: The main reason why businesses outsource is because they may struggle to find the right person to hire locally. After the lockdowns for example, many expats went overseas, so there was less talent available. Therefore, businesses were competing for who was available – many SMEs were priced out. As a result, more businesses started looking overseas to outsource as they were unable to hire locally. 

Lack of commitment: For small businesses, outsourcing can remove the need to fully commit to local talent when all you are after is a contractor who can work short term.

24 Hour work: In a globalised work, businesses are often expected to operate 24 hours a day: from e-commerce brands that operate internationally to medical consult apps. Having a team that operates 24 hours a day means that your business can still keep moving as you sleep.

Highly qualified talent: Many people in Australia don’t realise how qualified some of the international talent really is. The Philippines, for example, has an excellent school and university system. They also have too many skilled university graduates and not enough jobs. You can find some very talented people when you look abroad who are not being utilised.

How to outsource successfully

There are many factors to consider if you want to really make the most out of outsourcing, including how you can do right by your employees.

Work out what type of employee you need: Do you need someone full time, or do you just need someone for short term tasks?

Choose agency vs freelancer wisely: Many of us will be familiar with the freelancer websites. While some of them work well, going it alone can lead to issues managing your employees. You also have the option to outsource through an agency, if budget allows. Watch out on this note – if you’re outsourcing through an agency, they tend to take more than you bargained for!

Be consistent: Try to build up a relationship with just one person, as opposed to multiple. This not only means you’re giving someone stable, ongoing work, but you also don’t need to keep briefing someone new from scratch. 

Include your outsourced employees in your team: You can utilise outsourced staff as an extension of your team. For example we have businesses who will have digital pizza parties with their entire team worldwide. They will join team meetings and participate in what they can digitally. This helps to boost team culture and ensure your contractor is immersed in the business so they can do their best work.

Remember that outsourcing isn’t just about you, but also your employees, and do you research. You’ll end up with an arrangement that works well for everyone involved.