5 Signs If Your Startup is Ready for Outsourcing

5 signs if startup is ready for outsourcing provider

What do the world’s largest search engine, most popular video conferencing app, a leading cloud services program, and well-known web analytics tool have in common? They’ve all reached unicorn status with the help of outsourcing.

As far back as 1995, startups already began outsourcing their product development and information technology operations. Outsourcing then was a groundbreaking idea that would help companies multiply at a faster rate.

Today, getting an outsourcing provider plays a significant role in expanding a business’ reach at an affordable price. They cater to both startups and established companies, offering a wide menu of outsourcing services including customer service, technical support, data entry and other back office functions.

However, the key to making outsourcing a success is not utilizing providers from the get-go. Startups who reaped its benefits took their time and had all their ducks in a row before engaging with any outsourcing providers. Doing it at the right time is such an important element. If done prematurely, it might work against your time and limited resources.

So here are the 5 signs to tell if your startup is ready for outsourcing:

1. You have good organizational structure.

It’s usual for startups to shift gears every now and then due to its nature. But team members should know what their main roles and responsibilities are. There’s a thin line between flexibility and constant chaos at work. Outsourcing when the internal organization keeps changing responsibilities short enough before they can even catch up is a formula for failure. The right time to outsource is when roles and responsibilities have somehow been clearly set.

2. You know what roles you want to outsource.

Positions evolve and that’s expected in any company. However, you need to have a clear vision of the functions you want to outsource. This allows the outsourcing provider to hire the right people with the skills needed to be effective in the job.

3. Operational processes are in place.

Having stable workflows and operations should be set in place once you decide to outsource. More importantly, processes related to your outsourcing operations should be simple and effective. Any sizable problem in the process can be copied by the provider, making your outsourcing solution futile. Outsourcing companies typically provide support for improving processes. However, it would be best to lay the groundwork well for them to work with.

4. You are planning to outsource for the long haul.

Getting an outsourcing provider is one of the biggest decisions a company can make. This step requires unanimous agreement from your partners and investors. It involves administrative work, manpower, legal preparations and other efforts at the start of the business relationship. This is why it’s a strategy that is best suited for long term plan.

5. Your internal team is supportive of outsourcing.

How you’d like to develop your startup is up to you, your partners and your investors. However, getting the support of your in-house team can go a very long way in making your outsourcing goals achievable. Employees who are unsupportive of your outsourcing strategy may unintentionally hinder work and communication flows.

Is your startup ready to outsource?

If your startup is ready, the next step is to start looking for the right outsourcing provider. But if your startup is intensely in the adjustment stage, it would be wise to hold off from outsourcing for now. First satisfying the requirements above before will help make your outsourcing journey a breeze.

For startups ready to outsource

One of the best locations to get an outsourcing provider is the Philippines. Its highly-skilled and experienced workforce flexibly works across various time zones using global best practices. Filipino workers can also speak or write English proficiently and is highly familiar with Western cultures. This makes them ideal for startups in the US, UK, and Australia.

To know if outsourcing to the Philippines is right for your startup business, talk to us today.