In the world of small business, outsourcing is rife – and for a good reason. Companies with limited budgets can streamline their activities by looking outside of their structures for skilled and equipped professionals. Here are the top 5 services that are regularly outsourced by small businesses.
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1. Logistics
Despite advances in the automation of logistics, it is still an immensely labor-intensive and expensive area of business. All companies that deal in products or materials need to have extensive logistical planning capabilities available to them. This is simply not possible to foster in-house for the majority of small companies. Third-party logistics companies make their money by taking on the responsibility for the warehousing, picking, packing, and delivery of items away from the hard work shoulders of smaller businesses. The largest third-party logistics companies operate huge fleets, run centralized fulfillment centers, and have networks of shipping brokers to work with. On the whole, third-party logistical companies can usually get products where they need to be for a lower price than in-house departments due to economies of scale.
2. IT Services
Large corporations and established businesses typically employ an in-house cadre of IT professionals. This is not possible for many small and emerging companies – companies that have to operate using a skeleton crew. Managed IT service providers are immensely helpful for smaller businesses. They complete all the tasks usually associated with in-house IT departments – usually at a fraction of the cost. Troubleshooting, acquisitions, training, and cybersecurity protection are all within the spectrum of duties assigned to third-party IT companies.
Managed IT service providers can also help companies move forward and adapt to new technologies. A great many companies are taking part in the mass migration to the cloud – adapting to the remote hosting of data and computing capabilities. Managed IT service companies can help small businesses migrate to the cloud in a painless and efficient way.
3. Security
Small companies often hire in security professionals from outside of their corporate structure. This is so that they can save money on the training, outfitting, and monitoring of security staff.
4. Web Design
Web design is one of the most frequently outsourced tasks in business. Specialist web design agencies are far more likely to be able to offer an up-to-date, secure, and fit for market site than an overworked IT generalist working within a small company. Third-party web design agencies also often commit to the maintenance and upgrading of a site long after it has been launched – further easing the financial burden on a small business. Good web design is an immensely important factor in the success of a small business and should not be overlooked. A vast quantity of consumer interaction occurs online.
5. Marketing
Although marketing strategies are formed so as to fit in with the wider strategic aims of a company, the actual work of constructing marketing materials and disseminating them is often outsourced. Experienced marketing agencies know how to get the most out of any budget.
