Outsourcing to Escalate Startup Growth: Why and How


Achieving more by doing less; isn’t it too good to be true? For a growing startup like yours, this can be done by outsourcing. Outsourcing makes it possible to delegate some tasks, typically administrative and paper-related support, to a third-party provider so you can focus on a more strategic role. Now, if you’re wondering why outsourcing some functions can help escalate your startup growth, here’s how.


Saving expenses

Running a startup is not cheap. You have to pay for the infrastructure, office space rent, salaries and benefits, insurance, electricity, and many other things at the core of the business. If you want to cut down a significant amount of money while maintaining performance, hiring outsourced employees can be a great help. Hiring outsourced talents for roles that require less strategic efforts or deal with repetitive tasks, such as auditors, recruiters, legal teams, and even janitors, can help you save operational costs. You can employ them for a certain task at a specific time, or only when needed.


Curated Experts of the Industry

You can obtain competent expert assistance by turning to specialist outsourcing services; where they can help identify and verify the right talents for the job. As these providers specialize in supporting different types of businesses, they get practical expertise in a variety of industries, as well as methods of handling, successful cooperative plans, and an excellent reputation. For example, since not every company can afford to maintain its IT department, IT consulting has grown in popularity. IT professionals are in great demand all across the world, and outsourcing helps you to discover great performance on any budget.  


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If you’re ready to outsource some of your business functions, here are 5 aspects to pay attention to so you can leverage outsourcing for startup growth.

1 . Budget Planning

Prior to deciding on outsourcing, it is fundamental to carefully examine the startup’s budget planning. The first thing to do is comparing the cost for in-house employees with outsourced ones, you need to consult with the finance department for this. If the calculation shows that outsourcing may cost your startup a lot more than if having in-house employees, then it is best to not proceed further with outsourcing. On the other hand, if you find that outsourcing can save quite an amount of expense, then set a specific amount of maximum budget and move on to the next step.

2 . Research on Providers

Outsourcing talent services are rising along with growing demands for outsourced talents. Thus, you need to be really careful in choosing potential providers by conducting thorough research on them. Narrow down your search to companies with industry-specific experience and a well-established team. The professional image in the solutions market is also significant. Analyze reviews and recommendations from friends or acquaintances who have used similar services. You can also look up the company on LinkedIn to check its authenticity. The outsourcing company should demonstrate open and reliable work quality, with feedback at all stages and access to portfolios and former clients.

3 . Non-disclosure Agreement

In principle, the purpose of Non-disclosure Agreement or NDA is to protect the confidentiality of customer information. NDA specifies what confidential information the customer has provided to further operations with the outsourcing provider. It also defines what is considered a violation and the sanctions that follow. It is vital to prepare all legal documents that will control the rights and responsibilities of each party in a business partnership to avoid legal disputes in the future.  

4 . Safety Measures for Your System and Data

When deciding on an outsourcing service, cybersecurity is frequently overlooked. The number of cyberattacks has increased during the pandemic, so it is critical to pay close attention to this issue. Remember, your employees’ data are at stake if you do not seriously implement safety measures for your system and data. To prevent data breaches and violations, you do not have to give outsourcing services access to everything; only the services needed to perform the necessary outsourced activities.

5 . Adjust the Workflow

Make sure that your startup’s workflow can align with the outsourced provider. Although outsourced employees are trained as professionals in their field, the workflow may differ from one company and another. Therefore, set up a time for adjustment and training with your internal management to ensure that the workflow is established between your team and outsourced talents. Moreover, know that there are times when communication may not go well. Any disagreements can be resolved through close discussions, so both you and the outsourcing provider, are happy with the partnership.


Having known the benefits of outsourcing, it is worth considering for your startup to outsource some of its business operations. After all, this should be something that contributes to your growth and not becoming one that impedes it. 


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