80% of Small Businesses Plan to Outsource in 2021, Citing the Ability to Save Time, Grow Their Business, and Work with Experts

WASHINGTON, Jan. 21, 2021 /PRNewswire/ — 8 in 10 small businesses (80%) plan to outsource in 2021, citing that prospect of saving time and money and working with experts, according to a new report on Clutch, the leading B2B research firm.

Small businesses are outsourcing business functions to drive growth.

Chelsea Kane is the founder and sole proprietor of First Cup Morning Series, a daily mindfulness audio program. She says that embracing outsourcing is essential for small businesses.

“As an entrepreneur, trying to do everything yourself can slow down the growth of your business,” Kane said. “Outsourcing has enabled me to focus on the parts of the business I love, and leave the other parts to respective experts in their own field.”

Outsourcing Enables Businesses to Work With Experts

More than one-quarter of businesses with 10 employees or fewer (26%) say that their company’s main motivation for outsourcing is to get help from an expert.

Experts can help small businesses with tasks that require specific abilities and experiences.

Matthew Bonestroo is the owner of Phoenix Mobile Home LLC, a platform for buying and selling mobile homes. Bonestroo noticed that companies were using TikTok, a social media platform for short-form videos, to market their products.

Bonestroo wanted to start posting videos, but he knows trailers, not TikTok. Instead, he outsources video content creation to a videographer who can help him reach potential customers.

For $50 per hour, Bonestroo has high-quality video content and a presence on a new platform.

Onshoring is the Most Popular Outsourcing Strategy

As globalization changes business, companies must decide whether to outsource business tasks to firms in their own country or outside of it. More than half of small businesses (56%) weigh their options and decide to onshore.

In comparison, less than 1 in 5 companies plan to nearshore (15%) or offshore (18%).

Onshoring provides benefits when business processes require native language competency and domestic business acumen.

“It’s so attractive to outsource onshore because the contractors or freelancers can typically hit the ground running,” said Shilonda Downing, founder of Virtual Work Team, an American recruiting, staffing, and project management agency. “They are already native English speakers and no doubt top professionals in their field.”

Amit Gami, founder of Card Payment Guru, an online credit card processing vendor in the U.K., decides whether to onshore, nearshore, or offshore based on how it will affect his users.

“If the task relates to our on-shore user base, we go onshore. If the task does not require country-specific knowledge, we go offshore. It is often cheaper and the quality is high,” Gami said.

For example, Gami hires onshore vendors to manage social media campaigns on Google and Facebook.

Decisions about onshoring and offshoring indicate that there is an appropriate vendor and location for any project.

Read the full report here: https://clutch.co/bpo/resources/benefits-of-outsourcing

For questions about the survey or a comment on the findings, contact Seamus Roddy at 

About Clutch

The leading B2B research, ratings, and reviews firm, Clutch connects small and medium businesses with the best-fit agencies, software, or consultants they need to tackle business challenges together and with confidence. Clutch’s methodology compares business service providers and software in a specific market based on verified client reviews, services offered, work quality, and market presence.

Seamus Roddy

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