By: Dan Vanrenen
24th June 2024
Small to medium businesses continue to face significant challenges in 2024 due to the ongoing economic uncertainty, high inflation, rising interest rates, and mounting debt.
A Manpower Group survey found that 76% of companies with 10 to 49 employees are experiencing a talent shortage. Despite these obstacles, offshore staffing offers a solution for small businesses to overcome these challenges. By hiring offshore employees, startups can benefit from improved scaling, access to skilled talent, round-the-clock support, and cost savings.
Many startups struggle with scaling, with 70% of UK and European SMEs finding it challenging to scale their online businesses due to a lack of logistical and compliance support. Building a solid team is also a common pain point for entrepreneurs. Offshoring helps small businesses scale both their operations and teams more effectively than traditional outsourcing. With offshoring, you have direct control over your dedicated team of professionals, providing more opportunities for growth. Deloitte found that 70% of surveyed companies aimed to develop their capabilities through offshoring in 2021, with 59% achieving this goal by 2023.
The global talent shortage has made it difficult for businesses to find expert employees. In 2022, 18% of small businesses turned to offshoring to work with skilled professionals. Offshore staffing providers offer access to diverse talent pools, allowing small businesses to find the support they need in areas such as IT, accounting, HR, and payroll. Deloitte reported that in 2023, 62% of respondents received HR support, 79% got payroll assistance, 57% for IT, and 91% for accounting through offshoring.
Time zone differences between countries can be a concern for companies requiring round-the-clock services. However, offshoring enables small businesses to provide 24/7 support. South African and Indian remote workers are known for their dedication to service and willingness to adjust their schedules to accommodate the working hours of businesses in different time zones.
Limited resources and budgets make it challenging for SMEs to hire new employees. In 2021, Deloitte found that 83% of surveyed companies aimed to reduce costs, and 82% planned to boost process efficiency through offshoring. By 2023, 84% achieved cost-saving goals and 88% increased process efficiency. Offshoring allows small businesses to work with skilled talent at lower labour costs compared to onshore employees. This frees up time and resources that can be focused on core business functions.
Offshore back office services can help small businesses streamline their administrative tasks, such as data entry, document management, and customer support. By delegating these tasks to a dedicated offshore team, companies can focus on their core competencies and improve overall productivity.
Implementing workflow automation can be challenging for small businesses due to limited resources and expertise. Offshoring provides access to skilled professionals who can help design, develop, and maintain automated workflows, leading to increased efficiency and reduced operational costs.
Accurate and timely data entry is crucial for small businesses, but it can be time-consuming and labour-intensive. Offshoring data entry tasks to a dedicated team ensures that data is processed quickly and accurately, allowing businesses to make informed decisions based on up-to-date information.
Identifying and optimising inefficient processes can be difficult for small businesses with limited resources. Offshore teams can analyse existing processes, identify bottlenecks, and implement improvements, resulting in increased productivity and cost savings.
At Growth Hub, we understand the challenges small businesses face in today's uncertain economic landscape. Our offshore staffing solutions are designed to help startups and SMEs scale their operations, access skilled talent, and achieve cost savings and efficiency.
By partnering with Growth Hub, you can:
Don't let the economic downturn and talent shortage hinder your small business growth. Contact Growth Hub today to learn how our offshore staffing solutions can help you succeed in the face of adversity.
