Did you know that a third of all small and medium enterprises (SMEs) fold in the first two years? It's a daunting statistic. By the five-year mark, half have shut their doors, and only a third see a decade. The journey of an SME isn't easy, and every entrepreneur knows this all too well.
In South Africa, the stakes are even higher for SMEs. They represent 98% of all businesses. SMEs employ between 50 to 60% of the entire workforce and make a significant 39% contribution to the GDP. Yet, the South African landscape isn't without its unique challenges, with issues like load shedding adding to the typical hurdles that SMEs face.
Why outsourced business travel services matter for SMEs
For SMEs to weather these storms and grow, they must consider the strength of outsourcing pivotal services. Based on the insights from a recent Corporate Traveller white paper, The Power of Outsourcing in Business Services & Travel, areas such as customer support, IT infrastructure management, financial consulting, human resources, and travel management emerge as sectors where outsourcing can provide competitive advantages.
1. Outsourcing ensures that businesses can draw from a larger talent pool, access best-practice expertise, and, ultimately, focus on their core competencies.
Let's dig deeper:
- Customer Support: Outsourcing allows SMEs to offer 24/7 support without the constraints of time zones or added costs for night shifts.
- IT Infrastructure Management: Tech experts can better handle updates, threats, and tech support while SMEs focus on their core activities.
- Financial Consulting: Expert financial advice can guide SMEs in money matters, preventing costly errors.
- Human Resources: Outsourcing HR means having seasoned professionals manage personnel issues, training, and hiring for SMEs.
- Business Travel Management: Travel management companies (TMCs) simplify the intricacies of corporate travel for SMEs, ensuring compliance, cost savings, and traveller safety.
2. Concerns and misconceptions SMEs have about outsourcing
Yet, deciding to outsource business travel services doesn't come easy for many SMEs. They grapple with concerns:
- Loss of Control: Handing over vital functions like business travel feels akin to relinquishing the company's pulse. The reality, however, is that most outsourcing partners work collaboratively with SMEs, ensuring transparency and shared objectives.
- Hidden Costs: The fear that, once committed, unexpected costs will emerge. A robust agreement and open communication can keep such concerns at bay for SMEs.
- Data Security: In this digital age, sharing proprietary information with external entities poses potential risks.
- Quality Concerns: Will the quality be up to par? Here, due diligence in selecting the right partner, reading testimonials, and checking references can assuage doubts.
3. Artificial Intelligence’s growing appeal for SMEs
Given these concerns, it's not rocket science to see why some SMEs might glance at AI and think, "Well, here's a solution that gives me control, doesn’t demand exorbitant fees, and operates at my command." A computer won't haggle about costs, and algorithms don't need lunch breaks, right?
There’s no denying the monumental strides AI has taken. For repetitive tasks, large-scale data analysis, or even predictive analytics, AI stands unmatched. The magic happens when algorithms unearth patterns from colossal datasets in mere seconds, offering SMEs insights that can be game-changers. SMEs are leveraging AI for data analysis, predictive market trends, customer chatbots, and even basic project management.
But as much as AI promises efficiency, it isn't without limitations. The intricacies of South African society, with its socio-economic fabric, rich cultural diversity, and unique business environment, can't be distilled down to just binary code. It demands a deeper human connection – a touch AI hasn't mastered yet.
Want to know more about artificial intelligence and the power of outsourcing business travel services for SMEs? Download the Corporate Traveller white paper now.
A balanced approach: merging human expertise with artificial intelligence
Bonnie Smith, GM of Corporate Traveller South Africa, hits the nail on the head in the Corporate Traveller white paper. She mentions that AI is undoubtedly transformative but isn't the end-all solution. Instead, the magic happens when SMEs combine the efficiency of AI with the depth and flexibility of human expertise for business travel services.
For instance, while an AI tool can predict the best time for an SME to book a flight or suggest optimal routes, it's the human touch that understands the nuances of business travel and the traveller's needs and can make decisions based on ever-changing global scenarios.
In essence, neither AI nor human expertise should exist in silos for SMEs. Together, they form a formidable force that allows SMEs to navigate the complexities of the South African business landscape with agility. This combined strength – the efficiency of AI and the adaptability of human intelligence – will propel SMEs forward in the challenging yet dynamic environment in which they operate.