4 Ways Outsourcing is Beneficial for SME Employers

Outsourcing became popular in the 90s, when businesses struggled to keep up with rising labour costs of the time. In the beginning, outsourcing was the reserve of large businesses, but now it’s more likely that SMEs will use outsourcing to help curb costs, while big businesses will often keep things in-house. But how exactly is outsourcing beneficial for employers? Let’s take a look at some of the pros of using outside contractors.

Cost Savings

SMEs can benefit from cost savings on multiple levels when outsourcing some tasks. They may not have enough resources to take on another member of staff in-house, but no extra infrastructure or technology is required to hire a freelancer who works from home. SMEs should avoid laying out money unnecessarily while they are still growing, so they don’t bite off more than they can chew, and that’s why freelancers are the perfect, flexible option. You can also outsource extra work within a budget that suits you.

Higher Efficiency

Outsourcing jobs can free up your current members of staff, so they can work their way through their daily task list and your SME can move forward smoothly. Jobs can be turned around quickly and effectively, without your employees having to work longer hours. Staff will then have the time to work on other tasks such as looking for ways to improve processes and services within your company.

Skilled Resources

By outsourcing work, you can employ the most skilled and specialist of freelancers in their niche. You won’t need to purchase any highly technical equipment or provide any extra training, as your outsourced employee should have everything they need to deliver your company with a quality service or product.


Depending on how well your SME is doing, you can be flexible with outsourcers and only allocate them work when there is demand for it – or you can afford it. You won’t have to make anyone redundant and you’re not tied into any lasting contracts. This will allow you to manage a business that may be seasonal, or cyclical in nature – you can have a pool of freelancers to draw from at whatever time you need.

If you want to know more information on your rights as a business working with freelancers, hire a solicitor who assists employers to explain the finer points.

Do you outsource your work to freelancers as an SME? What are your favourite benefits of choosing this employment route and why?

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