So you are building up your startup and you are overstrained by the amount of resources you require? Now just imagine how established startup founders have to handle traction, growth, and expansion.
It leaves founders often with little or no time to focus on the core tasks of the business like the iteration of their products and services. The successful ones learned quickly how to handle such situations and led the shift towards a global outlook on the importance of outsourcing.
Deloitte conducted a global survey on outsourcing and it reveals that 69% of the startups are outsourcing part of their needs for technology to cloud-based providers, 53% outsource IT functions, and 66% outsource companies that can accomplish their business processes. The reasons for startups using outsourcing so excessively are obvious:
1. Save On Costs
Outstanding staff is hard to find, expensive to hire (in particular software developers) and difficult to bind. Therefore, outsourcing has become a common business routine in the startup scene. It reduces the operating costs by transferring particular tasks to outsiders as compared to doing it in-house. With the reduction in operating expenses, startups get a fighting chance to survive. Imagine you had to hire for each task a new employee.
But it gets even better: The most cost effective – but also risky – form of outsourcing is offshore since the products or services are developed in a country with a much lower price level. If you have the right offshore partner, who can assure the quality of the work, you will not only save a lot of money but also scale up fast.
2. Scale Up Fast
Outsourcing allows you to leapfrog all the costs of developing your systems and products by avoiding the trial and error techniques that eat into your time. It lets you jump right into the gist of proven business systems. For your outsourcing team it`s even feasible to work on different functions of your product at the same time (e.g. front- and backend of your web platform) while you have to handle them one by one.
So what are you waiting for? You can focus now on growing and creating traction.
3. Get Specific Expertise and Skill Sets
The decision to outsource accelerates your business and saves money. But it also helps a startup to tap into a qualified team of specialists. It`s undeniable that your startup isn`t covering all the specific skill sets that you require. Unfortunately, young entrepreneurs are always trying to do everything by themselves. You can`t manage everything and you don`t have to.
In times of Industrialization 4.0, startups have the whole world to outsource particular skills (e.g. software development, design, customer service, marketing) necessary for growing their business. It`s not a costly domestic affair anymore.
4. Save Time and Delegate
For startup founders, it is second nature that they wear many hats while trying to grow the company. It makes them want to be involved in every aspect of the business. This is counterproductive and only serves to waste your time accomplishing very little.
By delegating some of your startup’s functions, you are saving time to concentrate on more pressing business matters. It also cultivates excellent leadership skills in the startup’s founders by learning to delegate and control all the processes.
5. Be Flexible
Just imagine how much time you invest in hiring and training talents so that they exhibit the same competencies an expert from outside has. And when you realize it`s not the right fit you are caught as you spent already so much effort and firing fast is a virtue that just a few entrepreneurs possess.
If you can adjust the workforce according to the particular needs of the startup at any one period, you will be more flexible to focus on the core structures of the startup to enhance growth.
Finally, in the internet age, startups are in a pole position to succeed and grow yet one out of every ten startups makes it celebrate their 5th anniversary. And outsourcing is the best way out (check out the infographic at the bottom of the article for more information). Since it is a new form of a rat race to launch a product or service, these startups are jumping with both feet without honing the skills to capitalize on a new and unique idea ahead of their competitors.
The cost of acquiring in-house talent is too much a tall order for startups that have neither the necessary capital nor time. This is why startups are leaning more on outsourcing services that reduce their operational costs and at the same time push up their annual turnover. Outsourcing is and will be the best way to grow your startup in this era.
Are you looking for some software outsourcing support?
Get in contact with the Startup Creator and let us implement the right outsourcing strategy for your startup. Our goal at Startup Creator is to boost the startup success rate from 1/10 to 9/10. Together we will skyrocket your app or complex web platform.
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