By Kevin Lightfoot
Chief Marketing Officer

Selecting an outsourced business service provider can be compared to choosing a surgeon.

A general practitioner might be able to find your heart, but will they be able to fix your cardiac problem once they find it? In many cases, a specialist is preferable when you need specialized care.

For some organizations, generalists are the ideal fit. They offer cost savings and allow the organization to focus on their brand’s priorities. However, generalists frequently fall short of demonstrating an appreciation for your business and the unique aspects that set you apart from your competitors. It helps to have a checklist of the benefits a niche provider can offer where the larger generalist providers fail.  

1. Expertise

When you outsource to a niche outsourcing player, they bring years of experience in specified business practices and expertise. They can do the job better with their knowledge and understanding of the domain, such as finance and accounting. This specialization leads to an increase in productivity and efficiency in the process, thereby contributing to the bottom line of your company.

Many niche players know the sandbox where they operate and don’t pretend to solve all your problems. They appreciate the concept of ‘fit’ and don’t try to put a round peg in a square hole.  

2. Specialized Recruiting

When they go searching for staff, the niche provider knows what they are looking for in candidates and they know how to make them a success. These organizations generally have a low attrition rate because they hire properly and train accordingly, so team members tend to build careers at the provider. High employee turnover adds uncertainty and inconsistency to any business model. Retaining a specialized outsourcing provider offers a level of continuity – and comfort – to reduce the risk of a substandard level of operation.

3. Diversity of Talent

This goes hand-in-hand with recruiting. Your niche provider knows where to find global talent and has the infrastructure to support your customized program. You no longer need to invest in recruiting and training expensive resources internally. Your outsourcing partner takes care of the resourcing needs with their pool of highly skilled resources. This gives you access to talent you may not traditionally have access to. The resources employed by your outsourcing partner are well-versed in the respective business areas and are experienced in handling the business needs of companies that want to outsource.

4. Flexibility

Outsourcing allows operations that have seasonal or cyclical demands to bring in additional resources when they’re necessary, and alternatively scale back after demand has peaked. A well-balanced specialized provider – one that supports a host of clients – can seamlessly move staff from one program to another where their specialized skills are transferable but never in conflict. For example, a tax specialist may wrap up the busy year-end season for an online retailer, but the logistics firm requires quarterly tax preparation. Individual firms lack this flexibility, but niche providers offer a scalable model for any business.

5. Cost-effectiveness:

This is table stakes for any outsourced arrangement and the most obvious benefit. You can always get the job done at a lower cost with a generalist but ensure you can maintain operational control and have a clear line of sight of how your program operates daily. You may be saving money but are short-term savings compromising long-term, sustainable growth? A niche provider can see issues around corners before they become problems – because they may have dealt with them before.

Alternatively, a true niche partner can uncover savings and opportunities that may never have been on the table previously. Another set of trained eyes always helps.

6. Focus, Focus, and more Focus!

The specialized niche provider is unique because they’ve identified a gap that needs to be filled and they are relentless in protecting their turf. Essentially, they’ve decided they want to own this category and will invest in keeping their edge – and your advantage. Their commitment to maintaining this edge is your secret sauce, from specialized management skills to internal protocols, and procedures.

The niche player has an unrelenting focus on a few, select services that are typically unrivaled at larger, global providers. These smaller, boutique providers can also provide a level of customization that the larger generalists shy away from because it doesn’t meet their cookie-cutter model. Getting lost in the mix is always a risk with the big names, but the niche player will never forget who you are.