Small firms reject outsourcing

More than nine in ten determined to keep their business 'in-house', survey finds

Nearly nine in ten UK small businesses do not feel that outsourcing will benefit them, new research has found.

A study carried out by NOP World found that just 12 per cent of small firms had decided to move part of their production or administration process out of the business.

Just 14 per said that they would consider outsourcing in the future, with most bosses seemingly determined to keep everything ‘in-house.’

Although outsourcing is seen as the domain of larger businesses, the Tenon Forum, which commissioned the research, said that small firms can also benefit from the process.

Alan Newton, chairman of the Tenon Forum, said that small businesses still weren’t keen on outsourcing.

“By outsourcing a business function to an external specialist, companies can direct their time and energy on what they do best – running their business – with savings in efficiency far outweighing any initial costs.

“This message has got through to larger companies, but is clearly still not reaching the majority of small business owners who, more than anyone, can benefit from a more focused use of their time,” he said.

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  1. Most of small businesses do not need outsourcing for their limited work area but outsourcing can minimize the cost of their limited activities. We know continuous small saving can be big asset for a organization.