| Small businesses today have one good reason to think | | | | devote on their core business by investing in |
| “big” and act like one. | | | | equipment, technologies, software and other things that |
| The reason: Offshore outsourcing. This exporting of | | | | can expand their operation. |
| IT-related work from developed countries like the | | | | SAVES OVERHEAD EXPENSES. The company |
| United States to other areas of the world continues to | | | | needs to enlarge when it expands production. This |
| level the playing field by providing this new breed of | | | | slows down the efficiency of the business and adding |
| businessmen with access to the same economies of | | | | extra cost. With outsourcing, the company can |
| scale, efficiency and expertise that big companies | | | | overhead costs and can add extra staff without |
| enjoy. | | | | having to increase the office. |
| “The benefits of offshore outsourcing (to small | | | | CONTROLS CAPITAL COST. Outsourcing puts the |
| businesses) are great,” said Fred Chua, CEO of | | | | money in the right places, avoiding expenses especially |
| Magellan Solutions Outsourcing Inc., a growing | | | | in the early stages of the business. “It also makes |
| Philippines-based call center which caters to SMEs, | | | | the firm attractive to investors, permitting business |
| entrepreneurs and professionals worldwide. “Gone | | | | owners to increase more capital directly into |
| are the days when offshore outsourcing is exclusive | | | | revenue-generating activities,” said Chua. |
| for the big players. There are now reliable outsourcing | | | | ENHANCES RISK MANAGEMENT. In every business, |
| providers that serve the small business segment.” | | | | there is risk such as change of markets, competition, |
| Unlike large firms, small businesses do not have the | | | | government regulation, financial conditions, and |
| years of experience, in-depth expertise, and extensive | | | | emerging technologies. Offshore outsourcing providers |
| presence in offshore locations. Chua said it is because | | | | can manage this risk as they are adept in deciding |
| small businesses have limited resources, with owners | | | | how to avoid those risks in their areas of expertise. |
| having limited time and attention. But instead of | | | | Outsourcing allows them to control over results in |
| concentrating on their main line of business, business | | | | various areas, including control in reliability, cost |
| owners find themselves spending a huge chunk of | | | | variability improvements, effective implementation of |
| time finishing tasks that do not contribute to profit | | | | ideas, cost-cutting, and more importantly, the ability to |
| margin. In a report released by the U.S. Small Business | | | | plan. |
| Association, an average business owner spends up to | | | | INCREASES EFFICIENCY. Offshore call centers hire a |
| 40 percent on routine administrative tasks. Outsourcing | | | | talented team of professionals who can perform |
| offers a solution that impacts their work. | | | | quality work expected of them. This frees up small |
| “Outsourcing allows them to focus on their core | | | | businesses from doing non-core business functions, |
| business resulting in work that serves their customers | | | | and enables them to focus on their core |
| more efficiently,” Chua said. | | | | competencies. |
| Small businesses, however, are yet to appreciate the | | | | KEEPS YOUR BUSINESS COMPETITIVE. Small |
| advantages usually enjoyed by bigger organizations. | | | | businesses encounter situations when they have too |
| Chua enumerates the benefits of an effective | | | | many clients and not enough time. Outsourcing |
| outsourcing for small businesses: | | | | providers can take on more projects without worrying |
| SAVES MONEY. Outsourcing allows businesses to | | | | about budget overstretching. |
| dramatically reduce costs on every aspect of their | | | | Chua said it is important to choose the right partner to |
| business and eventually increase profits. Call center | | | | reap in the benefits of offshore outsourcing. “Look |
| services in an offshore location like the Philippines can | | | | for companies that are committed to providing |
| help companies save up to 50-60 percent of the | | | | high-quality customer service possible. Ask around, and |
| original cost. Chua specifically mentions outsourcing as | | | | find out what they can offer,” he said. “It’s |
| a cost-effective strategy that also enables businesses | | | | time for the global marketplace to see that small |
| to save on time, manpower, infrastructure and other | | | | businesses can make decisions that make them |
| expenses. More than ever, outsourcing can help them | | | | ‘smart’ businesses. |