In the dynamic world of today, companies need to adapt to the consumer-driven marketplace and this is one of the main reasons why on-demand outsourcing became one of the hottest trends in recent years. This way of handling certain structural and human resource problems within both small and big businesses proved to be very efficient, cost-effective and easy to implement. In this article we will focus on on-demand outsourcing for startups and all the benefits this practice brings to small business sector.
What Is Behind the On-Demand Outsourcing Growth?
Large improvements in networking technologies and constant rise of the number of internet users in the world had a great impact on entrepreneurship, especially on companies that run B2C business models. Orders, billing, paying, technical support etc, now run 24/7, and companies will do everything to please their consumers. Even some of the most advanced systems sometimes cannot handle running business at this pace, and system complexity is only noticed when something goes wrong. Since fast internet also improved worldwide communication, even one public complaint, remark or a negative review can drastically influence company’s revenue.
Although all this sounds discouraging to future entrepreneurs, the basic criteria that every small business needs to satisfy to become successful, is full and absolute perfection. Since fresh startups still do not have enough means to outsource their work on a regular scale or ensure that their business process runs smooth by hiring top industry experts, they need to hire agencies and freelances on demand for solving immediate problems and difficult situations that pop out from time to time.
What Is so Good About On-Demand Outsourcing?
This practice proved to be very effective, especially for fresh startups and other small businesses that do not have enough funds for employing top experts on regular bases. These are the main benefits of on-demand outsourcing:
- Reduction of necessary expenditure
- Inter-business networking improvement
- Employment opportunities increase;
- User experience improvement;
- Business activities and operations increase, etc.
- Fast troubleshooting;
Brightest Examples of On-Demand Outsourcing in Different Niches
Many different companies choose to outsource parts of their business process and we listed certain types of companies that can benefit big time from on-demand outsourcing practices:
Banks and Financial Institutions
These businesses are very reliant to latest technologies and that is why they often outsource significant portions of their IT work. Sometimes when big software problems appear, that can’t be handled by bank’s own IT sector; different agencies and freelance experts are hired and paid after the work is done. When it comes to IT outsourcing India is one of the leading markets in this niche, which made its IT and BP export sector grow to unbelievable $47 billion.
Companies from Hospitality Niche
Hotels, hostels, B&B and restaurants have high and low season periods that mainly dictate the number of guests. During high season, there is much higher demand, and that is why these venues need additional staff during these months.
Same as with hospitality industry, retail has its high and low seasons, as well as certain dates when there is much higher demand for the products they are selling. For example, some of the important dates for American retail stores are Black Friday, Super Saturday, Thanksgiving, Christmas Eve, Boxing week etc. Many sellers are hired only on these dates, and there is also a big demand for white collar IT experts during sales peaks on e-commerce retail stores.
Companies That Move Their Offices
This is the simplest, the most effective, and easy to understand way how on-demand outsourcing can benefit small businesses. One of the best examples, where startup companies largely benefited from hiring professional movers is Australia. Recently Sydney has been ranked among 10 cities with the biggest commercial real estate trade, mainly due to its vibrant startup culture. Entrepreneurs from this city understand the need for fast and painless office moving, and that is why in Sydney area we are now witnessing increasing demand for different labour hire, that include: truckers, handymen, move managers etc.
What the Future Holds for On-Demand Outsourcing
This practice has been on the rise for some time now, especially in certain white-collar niches like finance or human resources. With huge growth in popularity of on-demand outsourcing, even some government agencies and local authorities in developed countries start outsourcing certain segments of their usual work. This major breakthrough explains in very graphic way how convenient and functional can this business practice be.