Whether to scale up or expand to a new market, Internet of Things (IoT) outsourcing is a good option for business. Diving into crucial factors, how to rocket growth at a lower cost while maintaining the service quality you’ve been striving for. 

Why is IoT outsourcing beneficial for SMEs?

IoT outsourcing has brought tremendous advantages for startups and small and medium-sized enterprises (SMEs), significantly cost saving. SMEs also enjoy a pool of professionals with diverse skill sets and flexibility. It enables businesses to scale and grow with no boundaries.

Small business survey by Clutch for Iot outsourcing

However, there are also some drawbacks when it comes to IoT outsourcing. The main concern is the loss of control in operation. Some businesses don’t feel safe when they rely on external teams. Back-and-forth communication and misunderstandings also pose a potential threat. 

These complex benefits create a considerable challenge for business owners when planning to scale. Could SMEs enjoy the best of both worlds: reduce their operation cost and receive high standard service quality?

Tactics to balance cost and quality in IoT outsourcing

Balancing cost and quality are vital long-term goals that every business strives for. Balancing costs helps SMEs to remain competitive. Ensuring high-quality services, at the same time, drives customer satisfaction and increases the ability to grow. This meticulous process involves a comprehensive assessment of various stages:

1/ 5W your needs and goals

It all starts at the basic 5Ws why you need an IoT outsourcing partner. What’s your core business model? What are your competitive advantages? What are your long-term and short-term goals? What are the challenges and opportunities? What key deliverables do you expect from your outsourcing partner? Those 5 questions would help shape your vision and expectations in outsourcing vendors for future business growth. 

2/ Choose the appropriate outsourcing model

After defining your needs, choosing an operating model would be easier. There are many outsourcing models available in the market. Staff augmentation is excellent if you seek a lower-cost, flexible solution to fill the skill gaps. On the contrary, this might provide little innovative breakthrough as a project-based team. Understanding your priorities and strategic goals will enforce a suitable model.  

3/ Get-to-know your outsourcing partner

Choose partners with a good reputation and certified service delivery. A referral check is also a good way to get feedback. The more you know about a partner, your business will likely progress

4/ Create a clear framework and success metrics

A clear and measurable framework is what drives good cooperation. Expected turn-around-time, breakdown deliverables, essential milestones, and quality standards should all be addressed concisely. So that both parties will know what the mutual expectations are and together go on the right track. 

5/ Monitor and manage the outsourcing relationship

Once the partner is chosen, it’s time to get work done and enhance the relationship. Frequent communication with clear direction will help both parties meet the expectations and committed goals. Maintaining a business relationship is the same as growing one. Effective communication with constructive feedback in resolving issues will help strengthen the connection and efficiency of the team. Consequently, success awaits. 

Grow your business with Sunbytes: Your dedicated IoT outsource partner

If you plan to scale your team, having a guide or valuable tips will help you choose the perfect match like Sunbytes.

With hundreds of projects supporting businesses globally and proven records, we pride ourselves on being an integral collaborator for every company. Sunbytes fulfills you with a fully integrated team of diverse skill sets and detail-oriented commitment to every requirement.  

To find out how we can help scale your business as an in-house team, check out our IoT outsourcing services page. 


In conclusion, IoT outsourcing would not be one-size-fits-all for startups and SMEs. A thorough evaluation with a clear vision and structured checklist would be of value in choosing the right IoT outsourcing partner for your business.

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