According to new research by SavvySME, majority of businesses prioritise quality, industry expertise and cultural fit over lowest quotes from service providers when outsourcing.
The SavvySME B2B Jobs Report 2023 analyses the priorities of small to medium-sized enterprises (SMEs) who are looking for a service provider on SavvySME.
Lowest quotes came in as a priority for only 7.58% of businesses outsourcing. Despite the prevailing belief that lowest quotes isone of the biggest deciding factors on platforms such as Thumbtack and Hipages, many business owners would prefer quality and experience over the lowest quote when outsourcing.
According toPWC’s Global Outsourcing Report:
“Outsourcing is growing fast and delivering results. More people than ever are outsourcing with no indication that growth will slow.”
“Our findings confirm that outsourcing has matured beyond cost reduction to become a way for organisations to better access talent and capabilities, gain more flexibility, reinvent their business model and drive innovation.”
Keith Rowley, SavvySME Top Influencer in Online Business explains whycost is not the right measure when outsourcing in business.
“Never think in terms of cheap or expensive. Think in terms of investment and return. Cheap with no return is very, very expensive. High cost with good return is cheap. This is really all a question of measuring value.”
Industry expertise came in as the second highest priority, with 27.35% of businesses looking at this as a priority when outsourcing in their business.
Different industries operate in unique ways and it often takes time and experience to get acquainted with not only different industries, but different business types within those industries. Amanda Hoffman, SavvySME Top Influencer in Tax explains how hiring a service provider with specific industry experience can add immediate value to a business.
“Industry-specific expertise might weigh in as more valuable than being besties with the accountant... I know of clients who have saved over $20k simply by getting the correct advice/consultation.”
In the search for the right service provider, buyers have touted quality of work as the crucial deciding factor. This was the highest priority for businesses with an overwhelming 34.87% of businesses ranking this as their top concern.
In an interesting finding, cultural fit was considered the third most important factor for buyers, with 19.44% of businesses claiming this was a top priority for them.
These priorities are not necessarily mutually exclusive. Erik Bigalk, SavvySME Top Influencer in Marketing discusses the clients his agency has worked with and how quality of service and cultural fit actually goes hand in hand.
“Looking back over the many clients we have worked with and run campaigns for, the ones that have really been outstanding have been where we have been more than just client and agency, but deeply engaged in the success of the business, passionate and full of ideas because of it…”
“Yes, picking an agency that has kicked some goals, perhaps won some industry awards and has a strong list of past and current clients is a good basis - but most certainly, if there is no passion, care, deep understanding and alignment that will have them go the extra distance - then the outcomes will certainly be stunted.”
What is the top priority for businesses when outsourcing?
| Highest Quality | 34.87% |
| Industry Expertise | 27.35% |
| Best Cultural Fit | 19.44% |
| Fastest | 10.76% |
| Lowest Quote | 7.58% |
Source: SavvySME B2B Jobs Report 2023
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