Historically, outsourcing, from payroll to benefits to taxes, has focused on large companies with multiple locations. It makes cents and sense; as the more locations, pay grades, and complexities, the higher the ROI from outsourcing.
With SaaS adoption making the user experience much improved, plus, the growing challenges and complexities of doing business, many small and middle-market executives are looking to offload administrative and back-office work off to specialists who can do it cheaper and better while ensuring less fixed costs.
The most compelling reason for targeting the mid-market is the size and revenue potential as the middle-market demand for outsourcing is significant.
The market potential by number (#) of businesses with 50+ full-time W-2 employees available on LinkedIn is highlighted in the table below.
| Europe | Americas | India & Middle East | Asia |
| 100,000 | 100,000 | 10,000 | 25,000 |
Not only are companies challenged with becoming more efficient to maintain the status quo, competition is eroding margins, globalization is causing changes in cost structures, and technology is either a hindrance or a helper.
According to our annual primary research of small and middle market buyers, the majority of businesses are already outsourcing at least two processes.
| Landscape | Mid-Market Target Companies in the USA Outsourcing |
| Staffing | 1,493 |
| Call Centers | 500 |
| Security | 899 |
| Healthcare | 4,524 |
| Accounting | 800 |
| Telecom | 2,084 |
| Financial | 3,424 |
| Energy Services | 1,310 |
| Non-Profits | 3,087 |
| Insurance | 2,084 |
| Technology | 9,806 |
| Real Estate | 3,726 |
| Holding Company, Institutional Investor | 975 |
| Advertising, Media, Marketing | 2,913 |
The majority of businesses consider themselves mid-market enterprises. They have multiple vendors complicated by changing business demands and evolving landscape, and lack efficient and effective processes and expertise to adequately fit their needs.
Buyers of outsourcing technology and solutions buy to simplify their business, while valuing a solutions based approach coupled with industry vertical specific domain expertise. What will satisfy the needs of the SME middle-market is simplifying the technology and functional processes with a business-centric mindset.
By making the buying process easy, the long-term profitability potential is significant.
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