Should Your Tech Startup Consider Outsourcing?

outsourcing provider for startups

Technology startups have quickly emerged into a global phenomenon. If you belong to this space, you already know it’s a competitive jungle to be in. The intriguing question of whether tech startups should make use of outsourcing frequently comes up. There are those quick to dismiss the idea. Then you have entrepreneurs on the other side of the fence who view that working with a reliable outsourcing provider is one of the key solutions to grow faster.

As a business existing in such a fast-paced environment, you’re compelled to explore strategies that will help transform your startup vision into a reality. A plethora of those strategies include farming out some of your business processes. By relieving your company with less value activities, you can set your sights on big goals like knocking the competition out, gaining more traction, disrupting an industry or even changing the world.

So should your tech startup consider outsourcing? The answer is a firm yes if you usually find yourself in these sticky situations.

1. Your in-house team is constantly overloaded with too many tasks.

Every startup devotes a huge amount of effort into building a dream team. Once set up, they wear different hats and perform a dynamic set of responsibilities. You’ve probably experienced that the role they play in the organization gets blurred out as they get overloaded and sidetracked with too much work. This method is counterproductive and can cripple a company.

Having the right people working within their expertise and with focus lets them perform to their full potential. There will always be parts of your startup that are best handled by third parties such as an outsourcing provider. If a time-consuming business process can be duplicated, it’s a great idea to outsource it. With the right partner, an outsourcing firm can accomplish other tasks more effectively because it’s their focal point and don’t have a hundred of other things to worry about.

2. You struggle with other parts of the business where you’re not an expert.

Nobody is an expert at everything. In running your tech startup, it’s essential to identify what you do best and concentrate on your core competency.

For example, a startup who is an expert in developing software or app is better off pouring all their time, effort and energy to making it the most amazing product out there in the market. The rest of their business functions such as customer support, accounting and back office tasks like administration, content moderation, quality assurance, etc. can be outsourced to a company who is an expert in those fields.

3. You experience difficulties in hiring top talent due to the increasingly competitive job market among startups.

Vying for high-quality talent has never been harder as the startup era comes of age. This has pushed companies to be more fancy and creative with their compensation and benefits to attract the best and the brightest. However, it somehow became the norm with plenty of startups using these similar strategies. One of the potential answers to solve this recruitment problem is outsourcing. It allows you to expand your talent reach at a global level. Moreover, an outsourcing firm will assume the heavy lifting involved in recruitment.

4. You need to better manage your operating costs in order to scale and grow.

Whether your tech startup is well-funded by investors or bootstrapped, you may have experienced that operating expenses gets more expensive as you scale and grow. For this reason, it makes sense to assess economical and efficient ways to optimize your financial resources. Through an outsourcing company, you have the ability to control operating costs and elimine capital expenditures. These cost-saving measures can give you a financial leg up to fuel your growth initiatives.

As with anything, outsourcing is not the perfect solution to every technology startup out there. It remains to be one of the best strategies to grow a company. However, that greatly depends on when, who and how you use outsourcing for your business. To find out more if your startup is ready to outsource, check out this blog post.