10 Ways Outsourcing can Accelerate Startup Success

While big multinationals continue to grab headlines, it is small businesses that form the bedrock of the American economy. Data from the U.S. Small Business Administration suggests that there are about 33.3 million small businesses in the U.S., making up 99.9% of all U.S. businesses. This number reflects the dominance of small businesses and their crucial role in contributing to the economy and generating employment.????

So, if you are just starting your entrepreneurial journey, you are in good company. With so many small businesses thriving in the U.S., there’s no reason yours won’t as well. However, starting a business is not without its share of risks. In fact, research shows that 20% of businesses fail in the first year, 30% in the second year, and 50% by the fifth year. The two primary reasons behind business failure are the exhaustion of capital reserves and loss of market share.?

Therefore, when starting out, you should take care of these two factors. The best way to manage costs while tapping into expertise is by partnering with an IT outsourcing company. By outsourcing your non-core activities, you can reduce costs and improve your focus and performance in core activities. Moreover, outsourcing IT development and other functions can accelerate your startup’s journey to success. Here are 10 ways outsourcing can help.?

1. Cost savings?

The cost of hiring a local developer is significantly higher compared to hiring a developer from countries like India. For example, experienced developers in cities like New York earn between $100,000 and $150,000 annually. In comparison, senior software developers in India earn between $16,691 and $23,844. The difference is primarily due to the cost-of-living variance between these two regions.?

While the average cost of living for a bachelor in New York is $4,130, it is around $477 in Bangalore, India. Given this, your startup can save significantly by partnering with Indian outsourcing companies and hiring specialized talent from India. Thus, cost savings is one of the major advantages of outsourcing to countries like India. Moreover, you can further invest the money thus saved into your business propelling further growth.??

1. Scalability and Flexibility?

The business environment is dynamic in nature. Therefore, to cope with changing market conditions, you might need to either increase hiring or retrench staff from time to time. However, local hiring norms and the difficulty in finding quality talent can make it challenging for businesses to scale up or down quickly.?

This isn’t the case when you partner with an Indian outsourcing firm to outsource IT or other services. Firms like Remote Resource always have a talent pool at their disposal. This means you can hire additional talent or reduce excess staff as needed based on market conditions. This flexibility allows your business to absorb market shocks and navigate difficult situations with ease.??

1. Increased Core-competency Focus?

When you outsource your non-core activities to India, you have more time to focus on your core activities. For example, by outsourcing software development, graphic design, digital marketing, etc., you can free yourself from the burden of managing these tasks.?

This gives you ample time to dedicate to customer communication, feedback management, improving core product features and offerings, etc. This strategy helps you excel in both core and non-core activities, giving you a definite competitive advantage.??

1. Increased Speed to Market?

In business, it is always risky to grow too fast or too slow. If you spot an opportunity and decide to take advantage of it, you must be fast enough to seize it. Otherwise, you risk losing the advantage to a competitor. However, on average, it takes around 44 days to fill a position in the U.S.- meaning, by the time you finish hiring and bring them up to speed, chances are your competitors will have already moved ahead.?

You can reduce this time and increase your speed to market by partnering with an Indian IT outsourcing company to handle IT support, IT development, graphic design, etc. The outsourcing partner gives you access to a ready, highly qualified, pre-vetted talent pool.???

1. Mitigating Business Risks?

Starting a business means managing varied forms of risks. However, outsourcing can be a very good risk mitigation strategy. For example, by outsourcing IT related work to an IT staff agency, you know that experts in IT domain will take care of it and the associated risks. This strategy can therefore help reduce the risks your business faces.??

1. Hiring Specialized talents?

Sometimes you need to hire specialized talent for your business. However, you might not find such talent in your local pool. In these cases, an outsourcing partner can provide the talent you need, and often within a short timeframe.??

1. Diverse Talent Pool?

Connecting with an outsourcing partner allows you to hire talent from different geographies. Geographical and cultural diversity brings different viewpoints to problems or situations, resulting in better outcomes.??

1. Geographic Expansion?

Expanding geographically can be rewarding but also full of challenges for a startup. You need to understand the culture, language, local regulations, and more in the new country you're entering. In this context, outsourcing can be beneficial. For example, if you are expanding into India, it makes sense to outsource web development to the country and factor in the cultural nuances while developing the website.??

1. Quality Assurance?

By outsourcing specific tasks to your partner, you can be assured of quality output. Outsourcing allows you to hire top talent in the field at a fraction of local hiring costs.??

1. Competitive Advantage?

In the competitive business world, outsourcing can give your business the edge that sets you apart. By leveraging external expertise, you can improve product quality, expedite innovation, enhance customer service, and more.??

Wrapping up?

Starting a business is a rewarding journey filled with risks. However, one way to mitigate these risks while accelerating your path to success is through outsourcing. In the paragraphs above, we discussed 10 different ways outsourcing can help accelerate a business’s journey to success. Connect with our experts to learn more and keep following us for insightful blogs on more interesting topics.?