Small businesses today have one good reason to think “big” and act like one. The reason: Offshore outsourcing. This exporting of IT-related work from developed countries like the United States to other areas of the world continues to level the playing field by providing this new breed of businessmen with access to the same economies of scale, efficiency and expertise that big companies enjoy.

“The benefits of offshore outsourcing (to small businesses) are great,” said Fred Chua, CEO of Magellan Solutions Outsourcing Inc., a growing Philippines-based call center which caters to SMEs, entrepreneurs and professionals worldwide. “Gone are the days when offshore outsourcing is exclusive for the big players. There are now reliable outsourcing providers that serve the small business segment.”

Unlike large firms, small businesses do not have the years of experience, in-depth expertise, and extensive presence in offshore locations. Chua said it is because small businesses have limited resources, with owners having limited time and attention. But instead of concentrating on their main line of business, business owners find themselves spending a huge chunk of time finishing tasks that do not contribute to profit margin. In a report released by the U.S. Small Business Association, an average business owner spends up to 40 percent on routine administrative tasks. Outsourcing offers a solution that impacts their work. “Outsourcing allows them to focus on their core business resulting in work that serves their customers more efficiently,” Chua said.

Small businesses, however, are yet to appreciate the advantages usually enjoyed by bigger organizations. Chua enumerates the benefits of an effective outsourcing for small businesses:

SAVES MONEY. Outsourcing allows businesses to dramatically reduce costs on every aspect of their business and eventually increase profits. Call center services in an offshore location like the Philippines can help companies save up to 50-60 percent of the original cost. Chua specifically mentions outsourcing as a cost-effective strategy that also enables businesses to save on time, manpower, infrastructure and other expenses. More than ever, outsourcing can help them devote on their core business by investing in equipment, technologies, software and other things that can expand their operation.

SAVES OVERHEAD EXPENSES. The company needs to enlarge when it expands production. This slows down the efficiency of the business and adding extra cost. With outsourcing, the company can overhead costs and can add extra staff without having to increase the office.

CONTROLS CAPITAL COST. Outsourcing puts the money in the right places, avoiding expenses especially in the early stages of the business. “It also makes the firm attractive to investors, permitting business owners to increase more capital directly into revenue-generating activities,” said Chua.

ENHANCES RISK MANAGEMENT. In every business, there is risk such as change of markets, competition, government regulation, financial conditions, and emerging technologies. Offshore outsourcing providers can manage this risk as they are adept in deciding how to avoid those risks in their areas of expertise. Outsourcing allows them to control over results in various areas, including control in reliability, cost variability improvements, effective implementation of ideas, cost-cutting, and more importantly, the ability to plan.

INCREASES EFFICIENCY. Offshore call centers hire a talented team of professionals who can perform quality work expected of them. This frees up small businesses from doing non-core business functions, and enables them to focus on their core competencies.

KEEPS YOUR BUSINESS COMPETITIVE. Small businesses encounter situations when they have too many clients and not enough time. Outsourcing providers can take on more projects without worrying about budget overstretching.

Chua said it is important to choose the right partner to reap in the benefits of offshore outsourcing. “Look for companies that are committed to providing high-quality customer service possible. Ask around, and find out what they can offer,” he said. “It’s time for the global marketplace to see that small businesses can make decisions that make them ‘smart’ businesses.”