How Outsourcing Increases An SMB's Creditworthiness

by Prashant Kumar Digital marketer

Access to credit is one of the major problems faced by SMB’s today. Credit is the essential fuel that drives business operations and propels day to day actions for it. The lack of the same begs to consider the possibility of outsourcing for a cost-efficient option.

It is the resourcefulness and financial strength that determines the creditworthiness of any business. Conventionally, outsourcing has been seen as an excellent way to get time - consuming and expensive jobs done at an economical pace. Outsourcing also offers the twin benefit that allows the top management to focus on matters of importance and delegate everything else through outsourcing.

The tangible benefits of outsourcing can be manifested in the form of scalability and flexibility of the business. Many functions can be outsourced, which might be able to enhance the creditworthiness of your business.

How to go about the ‘Hire virtual employee’ concept?

You must aim to outsource your business to a company that offers a typical Company as a service demonstration. Substantial advantages wait for your company with this model, offering a unique ‘pay as you spend’ model that fits your financial goals. A long haul of activities and functions, which you may have had a hard time dealing with, can be unburdened with this function. Here is a list of capacities across different functional areas of a business that are perfect for outsourcing and enhancing the creditworthiness of a business.

Capacities favorable for IT outsourcing companies

Infrastructure

In a company as a service model, your employees could act as dedicated but remote ones who will be working out of a professional office and will have access to the necessary resources. This will be replete with a functional work station and they will be updated on a regular basis about the latest happenings and events at your workplace, completely mimicking your physical office area. Outsourcing in this area has the advantage of saving costs and resources to a large extent, adding immense cost-benefit to the outsourcing function.

Programming

All virtual and remote groups in your network can access a designated and fixed batch of programming. This otherwise continues to remain scalable and versatile through increment and reduction in the measure of the programming. According to your requirement, the degree of programming can be customized easily to meet and suit your typical needs. Software and programming is one area of organization resources, which tends to consume many funds, time and effort. By outsourcing this area of the organizational function, a company can enhance its creditworthiness, and in no small extent.

Hardware

You can easily pick a vendor, to whom all hardware requirements can be outsourced. Once done, everything from a PC to an internet connection becomes the responsibility of the vendor to whom the job has been outsourced. If and when something goes wrong, it will not be one of your headaches to fix it or get things working again. Numerous cost savings and time - saving can accrue to the organization through this channel. The ultimate gain in the form of enhanced creditworthiness should not be left to get ignored by any means.

Office staff

Every form of infrastructure and software shall be available at your disposal, which means that you can get any job done when you require. This, in turn, implies that your ongoing and new projects will not need to suffer in terms of missed deadlines or any lags. Jobs will be performed swiftly without any delays, which means higher productivity and better revenues. The incremental savings that will follow due to the outsourcing done in this area shall contribute to enhanced creditworthiness for the organization.

Non - core functions

There are multiple non - core operations which have no contribution whatsoever to your core capabilities. By their very nature, these functions merit and can be outsourced so that you may be able to contribute enough time and resources to the core functions of your business. Functions such as human resources, accounting, finance, IT, and virtual assistants are the ones which you need to focus on. These functions can enhance your business function and take your operations ahead by leaps and bounds. Therefore, it is this area of your business function where your efforts must be directed. Other functions, which can be easily outsourced, should actually be done, in order to extract maximum gains and benefits from the cost involved in the same. In line with the same, a company may hire mobile app developer and outsource the task of developing a mobile application, instead of appointing him permanently.

The ‘company as a service’ model tends to offer and deliver numerous advantages. For someone who is new to the field of business or is merely starting his business, as a small and medium business (SMB), there can be numerous benefits. This could result directly out of this outsourcing exercise. The best part about this drill is that it is highly results-oriented and never fails to deliver the important benefits and gains for the business.