Small-to-medium enterprises (or SMEs) are the backbone of the nation’s economy, employing just over 40% of the NZ
workforce. Regardless of the industry in which they operate, the more SMEs can ensure their longevity and ability to
scale into larger companies, the better they can contribute to innovation, job creation, and local and national economic
growth.
Despite their key role in economic development, however, the vast majority of SMEs have limited resources, especially
when starting out. These limitations often extend beyond purely the financial to include limited knowledge, labour, and
access to market. As it takes time to grow internal resource capacity, many SMEs use outsourcing as a way to bridge the
gap.
For any new SME, it is imperative that weaknesses are promptly outsourced, as attempting to offer services or run
certain aspects of the business internally when there isn’t the capacity or knowledge to do so effectively can
significantly impede growth and productivity. So, if an SME doesn’t have the means by which to hire a permanent in-house
accountant, for example, the best option would be to outsource that particular function – at least until such time as it
becomes viable to set up an internal accounting department.
There are many services and business functions that can be outsourced, including human resource management, content
creation, marketing, and online customer care. Thanks to the rapid growth of IT in Dunedin, especially, an increasing number of SMEs also have access to local world-class companies that can assist them with all
their specific tech requirements.
Since an internal IT department can be particularly expensive to run for fledgling companies, outsourcing IT to
qualified and knowledgeable companies that can assist in anything from hardware and software acquisition, Cloud
computing solutions, and general maintenance to upgrades and business futureproofing is a sure-fire way of ensuring SME
longevity.