Category Archives: Others

What Services Should a SME Outsource?

SME Outsource Services

A small and growing organization can only do as much. To be able to focus on business growth and stability, it is essential for the SMEs to outsource some of their business operations. Here is a list of some of the key IT operations that an SME can consider outsourcing.

ERP and Infrastructure: As businesses grow, they need processes and robust platforms to support their growth. This also means a huge investment in hardware and resources to manage this. Outsourcing this means a huge saving on expensive hardware configurations. Outsourcing implementation of ERP softwares like SAP Business One also means that small businesses get a dedicated team of experts to manage their systems seamlessly. All your processes and systems are kept up and running, while you focus on your critical business goals.

Payroll: Now this is a very tricky piece. As the company expands, there are tons of statutory compliances and taxation norms that you need to take care of. How do you ensure that you file all your computations correctly and on time? Simply, outsource it! There are multiple companies that provide complete payroll solutions and can become your extended arm to keep your performances sorted.

Customer Support: As SMEs continue to gain more customers, it becomes increasingly important to keep all of them happy. Setting up an in-house team can become quite a task in terms of time and money. How about giving it out to a service center that is available 24X7 for your customers?

Cloud Hosting:  While cloud computing is a cost effective technology when it comes to use, setting it up can cost a fortune. Hosting a cloud system internally also poses data security risks. Outsourcing cloud services means that you get to enjoy all the benefits of cloud (anywhere, anytime, any device access) in almost one third (or lower) the cost!

Outsourcing these services have some clear benefits for the SMEs:

Cost Effective: You save money. Period.

Better Expertise: When things are run by experts, you get better quality and experienced supervision.

Flexibility: There are no fixed / permanent costs. You can expand or reduce your outsourcing services according to business requirements.

Focus in Priorities: No more operational distractions. You can focus in what’s important for you!

What other services can a SME outsource? Share your thoughts with us!

What can SMEs expect from the Budget 2016-17

budget-infographic

Some enabling initiatives are on the cards, in sync with the Make in India program. Here’s a quick dekko at what the small businesses can expect in this Union Budget.

In a recent post (The New Age SMBs In India Are Ready To Embrace Technologywe had mentioned that the SME industry in India is a very interesting case. The industry employs a major chunk of the total workforce in India (40%), and yet its contribution to the Indian GDP is meagre (17%). With programs like India Aspiration Fund and Make In India, it would be exciting to see how the SME industry shapes up in the coming years. There is a lot of speculation about what would be allocated to the SMEs in the Union Budget to be announced later this month.

Here is our list of what SMEs can expect:

  • Investment towards skill growth: Increased monetary incentives are likely to be given under the Skill India program. This would help small scale businesses to give required trainings to their workforce.
  • More power to technology: A large chunk of capital is likely to be infused into the Technology Acquisition and Development Fund (TADF) to enable SMEs to acquire relevant technologies and support mechanisms.
  • Loan Reimbursements: The Cabinet has already approved a whopping 3,000-crore Mudra Credit Guarantee Fund (CGF). This aims to support small enterprises reeling under loans ranging between 50,000 to 10-lakh.
  • Job Creation: With the SMEs already employing a large chunk of the workforce, greater focus is likely to be given to technology start-ups and traditional businesses, as employment generators.