Small business outsource to cut costs and gain quality
More than 80% of new and small businesses have already started or would consider outsourcing parts of their business functions as they look to gain skills and cut costs, new research has revealed.
The research, carried out by OursourceMyProject.com, found that over 75% of new and small businesses believe that outsourcing will save them money and give them access to the experienced people they need to thrive.
However, many (34%) struggled to find suitable suppliers and some (13%) are concerned that the level of skills, quality and experience may not be up to scratch. OutsourceMyProject.com, the brainchild of Manchester entrepreneur Loren Holland, is working to change that by offering a website to find, evaluate and manage these suppliers for small businesses.
Loren Holland said: "Outsourcing has mainly been the preserve of larger companies, with few opportunities for start-ups or SMEs to outsource their work or projects. This latest research shows that these businesses need help if they are to succeed in and benefit from outsourcing."
He added: "Outsourcing and offshoring allows businesses to access specialist skills as and when they need them. It also allows businesses to work with suppliers from lower cost economies such as India and Eastern Europe. It is essential that new and small businesses explore these opportunities in order for them to prosper, especially in the current climate."
The survey also showed the variety of functions that businesses would look to outsource including website design, e-commerce, design and print, legal services, finance, HR and accounting, marketing, call centres and writing, editing and translation.
Since the launch of OutsourceMyProject.com in summer 2010, more than 1,000 suppliers have registered with the site to bid for over £55,000 worth of projects posted by UK businesses. The global offshore outsourcing market currently worth $60 billion and is set to grow by 20% per year for the next five years.
OutsourceMyProject.com brings together professional service providers with organisations and individuals looking to outsource business functions or projects. It is a member of the National Outsourcing Association (NOA), the UK's outsourcing centre of excellence.
Research was carried out by OutsourceMyProject at The Business Startup show, one of the country's largest business start-up shows held at Earl's Court in London on November 30 and December 1.
Editor Notes:
Results of research carried out at the Business Startup show on November 30 and December 1, 2010:
About OutsourceMyProject.com
Businesses which have a project they wish to outsource can visit the new website and upload details of the contract and invite bids – free of charge. Potential suppliers each have their own unique online profile, including details of ratings and feedback for past projects, to help customers decide who to award the contract to. Payment is not made until a project is completed.
The site also includes web-based tools to ensure contracts run smoothly. These include a payment platform, project management facility and messaging system to facilitate open, clear and safe communication between customers and suppliers.
The research, carried out by OursourceMyProject.com, found that over 75% of new and small businesses believe that outsourcing will save them money and give them access to the experienced people they need to thrive.
However, many (34%) struggled to find suitable suppliers and some (13%) are concerned that the level of skills, quality and experience may not be up to scratch. OutsourceMyProject.com, the brainchild of Manchester entrepreneur Loren Holland, is working to change that by offering a website to find, evaluate and manage these suppliers for small businesses.
Loren Holland said: "Outsourcing has mainly been the preserve of larger companies, with few opportunities for start-ups or SMEs to outsource their work or projects. This latest research shows that these businesses need help if they are to succeed in and benefit from outsourcing."
He added: "Outsourcing and offshoring allows businesses to access specialist skills as and when they need them. It also allows businesses to work with suppliers from lower cost economies such as India and Eastern Europe. It is essential that new and small businesses explore these opportunities in order for them to prosper, especially in the current climate."
The survey also showed the variety of functions that businesses would look to outsource including website design, e-commerce, design and print, legal services, finance, HR and accounting, marketing, call centres and writing, editing and translation.
Since the launch of OutsourceMyProject.com in summer 2010, more than 1,000 suppliers have registered with the site to bid for over £55,000 worth of projects posted by UK businesses. The global offshore outsourcing market currently worth $60 billion and is set to grow by 20% per year for the next five years.
OutsourceMyProject.com brings together professional service providers with organisations and individuals looking to outsource business functions or projects. It is a member of the National Outsourcing Association (NOA), the UK's outsourcing centre of excellence.
Research was carried out by OutsourceMyProject at The Business Startup show, one of the country's largest business start-up shows held at Earl's Court in London on November 30 and December 1.
Editor Notes:
Results of research carried out at the Business Startup show on November 30 and December 1, 2010:
- Over 50 businesses surveyed - all of which had between 1 and 10 people working in the organisation and were less than 5 years old (Nearly 90% were start-ups or less than 1 year)
- Majority (81%) already have (29%), or would consider (52%), outsourcing
- Those who have outsourced – 35% stayed within the UK, 65% went abroad
- Those who have never outsourced – 34% said because of a difficulty finding a provider, 34% prefer to keep things in-house, 13% because of a lack of confidence
- A quarter would most likely outsource websites and e-commerce
- Of those surveyed, 78% agree or strongly agree that outsourcing can reduce costs compared with keeping projects in house
- In a difficult economic climate, over 50% would consider outsourcing
- In a difficult economic climate, 48% would consider outsourcing aboard
- Over 50% believe outsourcing overseas can save money without sacrificing quality
- 79% would use a service like outsourcemyproject.com to outsource or offshore work
- 77% believe outsourcing can provide new businesses with access to the experienced people they need to develop and thrive
- 36% would outsource overseas rather than a UK-based supplier, and nearly 50% would if they could see ratings and reviews from other customers.
About OutsourceMyProject.com
Businesses which have a project they wish to outsource can visit the new website and upload details of the contract and invite bids – free of charge. Potential suppliers each have their own unique online profile, including details of ratings and feedback for past projects, to help customers decide who to award the contract to. Payment is not made until a project is completed.
The site also includes web-based tools to ensure contracts run smoothly. These include a payment platform, project management facility and messaging system to facilitate open, clear and safe communication between customers and suppliers.
