SME Outsourcing Trends

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    Tapping cheaper labor overseas isn’t just for large companies anymore. Small and mid-sized businesses will increasingly take up outsourcing and offshoring. Decision-makers are guided by experienced BPO advisors through the process and price models. Suppliers are also eyeing business from SMEs; it is looked at more as a growth opportunity and quick settlements. Small businesses are likely to get the same purported benefits from outsourcing as large ones, including low costs, competitive advantage and the ability to focus on the core business.


    Many SMEs are taking a strategic approach given the external conditions, but movement is definitely occurring. It is expected that these segments would present tremendous growth to vendors that are willing and have the capabilities to serve this market segment. SMEs will no doubt get the best deal possible with the most capabilities from either sole or multiple providers. SMEs need to have the right information at their fingertips in order to make informed outsourcing choices – until that time, they will sit back and wait until they see a definite trend. When that happens, the SME outsourcing market is set to explode.


    Various questions may crop up during the course of decision-making, especially when looking at outsourcing as a strategic move. The first question to be answered is which locations are most suitable. The second question is, how do you choose the right vendor? SMEs may not be able to visit vendor locations, so they must rely on various surveys conducted by organizations such as NeoIT and the International Association of Outsourcing Professionals. Three important factors to look at while making a choice are: reliability, technical capability and quality orientation.

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