Looking closer at outsourcing platforms for small businesses: A global landscape
For small businesses who want to increase their productivity, acquire expertise, save time, and grow, hiring new in-house staff is not the only option. Entrepreneurs and small business owners can also consider outsourcing, the business practice of hiring an external party to execute services that are traditionally completed by the company’s own employees. While outsourcing is common practice for larger businesses, smaller ones tend to lack the financial resources to outsource and, at the same time, cannot afford to build up their in-house capacity on a permanent basis.
However, these services are becoming more accessible and affordable to small businesses due to the growing number of online providers. Several digital freelancing and consulting platforms are connecting small businesses to a global pool of skilled remote workers beyond those in their immediate vicinity. This wide pool of workers offers services at more competitive prices.
With the emergence of these new platforms, small businesses can hire a specialist firm or professional to execute a specific activity on their behalf — such as marketing or accounting — or can outsource advisory or guidance services — such as strategic planning — where a consulting firm or professional provides recommendations and improvements for a business without playing a role in implementing those changes. Outsourcing can enable small businesses to increase productivity and overall efficiency, while keeping infrastructure, software, and/or personnel costs low. Additionally, small businesses are not only using these platforms to outsource expertise, they are also using them as an avenue to provide their own services by signing up as providers.
Yet, many small businesses may not know where to start when they want to outsource professional business services. A recent study in Nigeria found that most small firms were not aware of the existence of outsourcing platforms in their market. Those who were said they found it difficult to judge the skills and quality of outside providers, believed it would be time-consuming to find one, or did not trust an outside firm.
Earlier this year, Strive Community and Briter Bridges undertook a global landscape analysis of organizations and platforms that offer online outsourcing to understand its potential for small businesses. We identified approximately 500 platforms that offer a wide range of specialist and non-specialist services under two categories: outsourcing and consulting.
An opportunity for outsourcing platforms to target small businesses
Of the platforms and companies in our database, about 43% state that they specifically target small businesses. There is a missed opportunity for the remainder to better target small businesses, which constitute 90% of businesses worldwide. A recent survey of 1,003 small business owners and managers in the US found that at least 90% plan to outsource business tasks in 2022, up from 80% in 2021.
Some outsourcing platforms have seen the value in targeting small businesses and have introduced services specifically designed for them. Global freelancing platform Fiverr, for example, introduced Fiverr Workspace, a series of tools that simplify the process for a small business to set up an account and find and collaborate with clients. Some of the tools include proposal templates, automated time and task management, invoicing, and payment tools. Another freelancing platform, Upwork, introduced Upwork Plus to help small businesses gain more visibility among highly rated freelancers who are usually quickly hired by larger companies.
General outsourcing platforms provide a wide range of services
The majority of outsourcing platforms in our database provide a wide selection of services to small businesses. Some of the most popular global platforms include Upwork, Toptal, Freelancer.com, Fiverr, 99designs, PeoplePerHour, and Guru. According to our analysis, almost one-third operate globally: 35% in Europe, 21% in Asia Pacific, 9% in Africa, 6% in Latin America and the Caribbean, and 5% in the Middle East.
Several other platforms are catering to small businesses on a smaller scale. For example, Singapore-based freelancing company Works provides on-demand tech services ranging from software engineers to web designers to data analysts within 48 hours. In Europe, i-lance offers services including legal advice, software development, virtual assistance, graphic design, business consulting, and administrative services, among others.
Consulting platforms: Fewer, but growing online presence
We identified more than 60 companies that provide online consulting services, the majority of which were founded in the last seven years. These services offer guidance and recommendations on a range of topics, including business strategy and planning, financial management, digital strategy, technology selection, operational efficiency, and project management. Germany-based Management Factory has interim managers for hire — Rent-a-Chief Financial Officer, Rent-a-Finance Manager, Rent-a-Controller, or even Rent-a-Chief Restructuring Officer. These services are delivered virtually through video, mobile apps, one-on-one calls, or traditional forms like face-to-face services. Similarly, HalloSophia offers global “microadvisory” services — expert advice in small, useful sessions, for example, through 30–90 minutes of face-to-face video counseling.
View our landscaping database and maps
Our freely accessible database and outsourcing and consulting maps contain information on hundreds of outsourcing platforms and companies, the types of services they offer and their specialties, and how long they’ve been in operation. The database also contains information on their geographical reach. The information provided in this database and maps is not an exhaustive list and is not an endorsement of any of the platforms. If you would like access to the database, please get in touch or email us at: hello@strivecommunity.org
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