Business · IT-BPO · Uncategorized

The BIG question of the SMALL: To Outsource or Not?

Any reduction in operational cost can improve a company’s profitability. Hence, for entrepreneurs who are aiming to boost the operational growth of their startup company, one of the most efficient solutions is to outsource, which is a practice that involves the contracting out of a business process to another party, usually from a Business Process Outsourcing (BPO) company.

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In an interview with, Laura Lee Sparks, a law firm manager turned business owner, shares: “Most entrepreneurs have great talents but many times they think they can do it all. That can really stall the growth of the business. By outsourcing the day to day back-office tasks, the business owner has more time to focus on generating income.”

As soon she launched her own legal firm, Legal Marketing Maven, Sparks began hiring an outside bookkeeper to track her company’s financial transactions, and slowly added a virtual team of contractors, assisting her with other non-core tasks. The result? Her revenues reached six figures just within a few months of operations.

“More small businesses are outsourcing tasks these days because technology has advanced to the point of professionals being able to work from anywhere in the world, coupled with the availability and accessibility of extremely qualified professionals who have decided or been forced to leave the corporate world, such as virtual executive assistants, marketing directors, graphic designers, transcriptionists, paralegals, web designers, HR consultants, bookkeepers, PR directors, IT specialists, and the list goes on,” she says.

Like Sparks, many entrepreneurs outsource to cut their organization’s operational cost and to improve their business processes. While outsourcing is the right approach for some companies, it may also lead to the failure of other businesses, especially for deals that have fallen short of expectations in terms of service delivery, unforeseen costs, and expertise, to name a few.

Thus, the big question, should you outsource or not?

Outsourcing can be the best solution for your small business—that is if you know when and how to take advantage of it.

First, you have to understand the nature of your business. There are things you can and cannot outsource, such as, for example, the core processes of your business. Ask yourself, what is your business best at? So if you are selling a software for teachers, then you are certainly the only person who can create your product in a particular way.

Second, assess the things you cannot do or do not need to be doing in your organization. Using the same case above, as a company who specializes in software, there are certain tasks that can be outsourced such as payroll, marketing, and an inventory system for the marketing and sales of your products and services.

The bottom line is outsourcing can help you focus more on your core business functions. While finding the right outsourcing partner can take a lot of your time, having them on your side can often provide increased efficiency and cost-savings in your business.

An emerging IT-BPO company in the Philippines, BPSource, Inc. provides clients an integrated, end-to-end solution that promote efficient processes in organizations. Visit our website to learn more about services.


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