When should your startup outsource?

Why/When Can You Outsource?

If you have a business and are looking to outsource certain processes of your business, you need to understand why & when you should outsource. As a business, you should outsource tasks or work which are repeatable and don’t add value to your business. By outsourcing these tasks you can focus on core business activities and by giving such tasks to experts in the field, you can get the job done more effectively and even spend less.

To Focus On Your Core Business

When you are running your own business, there are several back-office tasks that require attention. It is quite true that doing this on your own can divert a lot of attention towards this. You might as well use this energy to scale up your core business. While doing so, you are not only increasing productivity but also are focusing on generating an income. If you think you are an entrepreneur who can get such redundant tasks done, you are just stalling your growth. Remember, smart work is better than hard work. 

Many companies including the smaller ones outsource common jobs such as call handling and marketing. If you have a bigger business, then you can outsource even tasks such as payroll, IT, Research and development. While outsourcing is great, you should also remember not to outsource any core competencies of your company. That would be a grave mistake. If you are planning on a clothing brand, you can outsource the manufacturing processes. However, outsourcing the design part of it would be deadly as it may be the key differentiator for your brand.

Less Internal Resources

If you have lesser internal resources including manpower, instead of hiring any new talents by yourself, you can outsource either to a larger company or to smaller independent contractors. This helps you to save money and also would help you get new well-trained employees.

If you want access to a larger talent pool instead of just your small, local talent pool, outsourcing companies help you gain access to talent from different parts of the world. This can also help you when you need temporary assistance. 

If you want to scale up your e-commerce clothing brand from just drop shipping to manufacturing custom products, you can outsource it. When you outsource manufacturing processes, it is often because the third-party manufacturer knows quite a lot about this. This can include finding raw materials that are available not only of your desired quality but also at affordable prices. You can produce good quality products while saving a lot. You and your team need not go hunting for various manufacturers to get several processes done. Instead of doing this, find one reliable, outsourcing contractor to get it done. 

Difficult To Manage Skills

The world is in the middle of a digital revolution. Almost all companies are transferring from an offline medium to online platforms. In India, many companies these days outsource digital marketing services to help them complete their digital onboarding. Some of the digital requirements include designing websites, running advertisements, and writing blogs. This not only helps them to complete skilled tasks but also allows them to complete them efficiently.

 A smaller outsourcing firm that specializes in these tasks will have industry-level expertise that will help you save up on the money you might have to pay while hiring a full-time executive.  When there are processes and operations that are new, but you lack the know-how and skills required, you can outsource.  

Expand And Understanding Newer Markets

When you outsource certain requirements to a third party, you are able to expand. Apart from sharing operational risks, when you are doing it offshore, you can also ensure that no operation is interrupted by any unexpected shortage. When you outsource, you are transferring any responsibilities to an organization you know can do a better job. You can increase your brand awareness among your consumer market. Let us take the example of having a call center. If you are planning to penetrate foreign markets, having a call center with multilingual personnel is a smart move. 

When you become a testimonial for your outsourcing company, you are exposing yourself to a new follower base. Additionally, you are also getting a chance to gain new leads. Whether your outsourcing company is foreign or located on the other side of the world, you can outsource your activities. 

Reduced Overhead Costs 

If you need a specific skill for a certain period of time, for example, developing a website, instead of hiring an IT personnel, you can simply outsource this. By outsourcing, you will reduce costs. If local talent is expensive, you can outsource using BPO companies. This will help you have well-educated staff at lower costs than your local counterpart. Doing this will also help you save any equipment and training costs. When you consider a full-time employee, it can include taxes, equipment such as phones, computers, and the cost of managing them. Outsourcing helps in cost-cutting. It also helps you gain access to specialized talent while maintaining efficiency and productivity.