Offshoring for Small Businesses
Offshore Outsourcing has traditionally been the domain of large multinational companies with the financial resources and global reach to enter a new faraway geography and establish a brand new operation or engage in a services agreement with a local provider. Even now that the world has become increasingly interconnected, small businesses will typically not consider offshoring or offshore outsourcing as a viable business strategy. The complexities and risks just seem too big and it is also something that they would just not think of when considering their options. This is a real shame as the benefits of offshore outsourcing could arguably benefit small businesses the most:
- Cost Savings - Small businesses need to be very cost-conscious and maximize their return on investment. Offshore outsourcing is an effective way of cutting operational costs down by as much as 70%.
- No Capex - Small businesses would like to avoid large capital expenditures like office space and IT infrastructure. Offshore outsourcing enables them to operate and expand without the need for any capital expenditures.
- Risk Mitigation - Small businesses need to avoid long-term commitments and long-term risks. Offshore outsourcing enables them to enter into flexible agreements where they can ramp up or shut down on a short-term notice and without any termination costs.
MicroSourcing strongly believes in the small and medium-sized business segment and we feel that this is a widely untapped market segment for offshore outsourcing services. We offer a number of delivery models that are ideally suited for small businesses, entrepreneurs, and start-ups:
Delivery Models for Small Businesses
We have project teams that can take on small projects on a short-term notice and at very cost-effective rates. Using our project outsourcing services, you could have us create your logo, redesign your website, clean up your database or any other task that can be executed by a project team.
Our staff leasing services enable you to have your own staff in the Philippines. You can personally handpick who you want in your offshore team and these employees will work for you full-time and exclusively. Offshore staff leasing is a highly cost-effective and flexible way of adding talent to your business.
MicroSourcing has served hundreds of clients in the small and medium-sized business segment. Many of them start by trying our services through a small project outsourcing trial. Once they like the results, they will often step it up by getting their own dedicated people through our offshore staff leasing services. This often starts with only one person. As they learn how effective offshore staffing can be, they rapidly expand and add more employees to their offshore team at MicroSourcing. The business case is quite compelling and the math is often quite simple: for the costs of a single employee domestically you could employ a team of four people in the Philippines doing the exact same work and with the same qualifications.
Beside these direct cost savings, you will be saving a lot of money indirectly as you will not have to legally employ or provide for these employees and you will not have to provide office space, workstations, and other facilities. The combination of project outsourcing and staff leasing can enable a small business or start-up to grow fast at minimal cost and at no long-term risk. With such a great competitive advantage, it will not be long before your small business grows into a mid-size business which is what we will look at in the next section.