It’s Time for the Next Frontier in Shared Services and Outsourcing

The time has finally come for Small to Medium-sized businesses/enterprises (SMEs) to utilize outsourcing and shared services as part of their business growth plans. Much has been written over several years about the benefits of outsourcing such as capital conservation, scalability, increased capabilities, and improved profitability – yet SMEs are not adopting outsourcing into their business models. I believe this is due to three primary reasons: Outsourcing is not top of mind for SMEs; time is too limited to seek out and research business support service alternatives; and finally, concerns that outsourcing could potentially damage their brand reputation. Based on extensive research and client work, I’ve identified the challenges providers face in reaching, engaging and converting SME prospects to clients. Some of the common barriers to success are distance and time zones; cultural differences; organizational silos; and focusing on selling services rather than providing differentiated solutions that meet key business issues within SME niches. From the outsourced and shared service providers' perspective, the revenue potential is huge; firms with 500 or fewer employees represent over 99% of employer businesses in the US and about 46% of GDP. For SMEs, rising costs, increasing regulations, a more competitive market environment, and the speed of change are forcing them to consider new approaches to maintain profits. I firmly believe that now is the time for SMEs to leverage the benefits of outsourcing and shared services, whether on-shore, near-shore, or offshore. To help build the knowledge bridge between SMEs and providers, I’ll be writing a series of articles* about why outsourcing makes sense and how to integrate outsourcing and shared services into any organization. The articles will follow a logical progression, starting with delving into the most pressing business challenges facing SMEs; exploring how outsourcing and shared services can deliver solutions that help SMEs achieve breakout growth; and presenting ideas on how providers can reach and engage with buyers using digital marketing and social media channels that will ultimately grow revenue in the huge SME market. [inlinead] * Topics Tom will be covering include: • Changing the perception of global outsourcing/selecting an outsourcing partner • Verticalization; meeting market needs and creating delivery capabilities • Working across silos to bundle services • Differentiated solutions for niche markets: Blue Ocean Strategy • Outsourcing as a COE for SMEs • Establishing trust: transparency and social media • Focus on outcomes not cost arbitrage • Identifying marketing opportunities through social channels • Reaching Buyers through digital marketing and social media

It’s Time for the Next Frontier in Shared Services and Outsourcing

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