Should Startups outsource?

Around 305 million startups are established each year . Building something up from scratch is not a task for the faint-hearted. With the challenges they’re bound to face, getting creative with solutions is a must.

Struggles are a part of every business. Fortunately, the world – now more than ever, offers innovative answers to modern problems.

Whether it’s the need to cut costs or access more talents, outsourcing proves to be beneficial even for startups. Gone are the days when only large corporations outsource their people and services. These days, several outsourcing firms offer solutions to businesses of all sizes. The trend of small businesses that outsource even propelled to 82% during the pandemic.

The lack of experience with outsourcing shouldn’t hinder your decision to do so. Here are just a few reasons why choosing to outsource may be rewarding for startups.

1.?????A strategic way to scale your business

Outsourcing makes it easier for startups to scale up or down. If hiring a full-time employee is still out of question, you can outsource a part-timer to carry out functions and other tasks.

Core functions, depending on the nature of the business, may be outsourced as well. For example, a startup focused on mobile applications may hire a programmer or software developer to work part-time or on a per-project basis.

By doing this, you can upscale or downscale your business at any pace you want.

2.?????Redirect your resources

Without having the need to go through a tedious recruitment process for other positions, startups can redirect their team to find more people who will take on core positions. This process also allows in-house recruitment teams to find more candidates on a global scale.

Aside from the recruitment side, startups can also save on equipment and infrastructure when they outsource. Things like office spaces, computers, and other devices are provided by your partner outsourcing firms, so that’s one less thing to worry about.

3.?????Reduces operational costs

The main reason that makes outsourcing popular is its ability to cut costs. Employment rates in the West are significantly higher versus in countries where outsourcing is prevalent like India or the Philippines.

Big and small companies outsource for the sole purpose of slashing expenses and scaling their business for a fraction of the cost. Startups will benefit the most from this as an outsourced employee or team costs less than having their own in-house departments.

This is also being done for strategic growth and development for the company’s expansion.

4.?????Focus on core functions

During a startup’s initial phase, it’s highly beneficial to outsource administrative departments such as HR, payroll, and accounting or finance. In that way, they can focus on the heart of their business and shift their focus to their expertise.

The Wrap Up

Evaluating whether outsourcing is a solution fit for your business isn’t an overnight process. It’s true that there are a lot of factors that one needs to consider, but with the advantages far outweighing the risks, it can be said that it is a solution worth investing in.

The Remote Group

With Remote Control BPO and Remote Sourcing under The Remote Group , we provide services that cover your offshore outsourcing needs and headhunting demands for niche and technical roles. Get in touch with us and we would be glad to discuss how we can grow your business through our tailor-fitted solutions.