Strategic outsourcing boosts performance and cost reduction in SMEs.
The article looks at how small service companies in Iceland have been outsourcing work from 2009 to 2018. They found that businesses with a clear outsourcing strategy tend to do better. These companies save money on things like office space and banking, and they use outsourcing to focus on their main services. They choose outsourcing partners based on cost and quality, not just personal connections. By focusing on what they do best, these companies also improve the quality of their services. This study is one of the few that looks at outsourcing in small businesses from a strategic viewpoint, and the results can help other small companies make better outsourcing decisions.