Why and What should Your Startup Consider Outsourcing?
Startups these Days are like Innovative Ideas turning into Businesses and then Into a Brand!
But everything doesn’t fall into Place as simple as its Stated in the above Sentence.It needs proper Strategic Approach with full proof Planning so as to avoid any Discrepancy.
The Reality is that 90% of new businesses Fail , 46% of them happen because companies get bankrupt. Also it should be understood that INvesting into something that doesn’t generate a heft return is a process leading to Failure. With outsourcing your Business you can reduce your chances by 60%. Now this doesn’t mean Not outsourcing your business Processes is the only thing leading to Failures , but yes it can be a major one .
Back in the Years of 2005 Deloitte Consulting Services Predicted that Companies will eventually outsource things not for the sake of cost -savings but will also benefit and use it as a part of their Business Development and Expansion Plan.
By Outsourcing I do not mean to throw your core process off the wall to the company , No Absolutely not but there are Processes which are necessarily outsourced.
IBM in one of their Studies Stated that 27% of companies Outsource to cut costs
36% are Innovators
37% are Growth Seekers.
A practical Example , open any Freelancer Platform and you will be able to see tons of companies posting needs of business Developers or Customer Service related things. No I am not talking about the Companies which are already market players but the Ones which are Startups. This is Because even that small team wants Innovators and people with Vision who can Properly do the work assigned so that the Company can focus better on Product Development , Marketing Etc.
By Outsourcing work in a Startup I mean collaborating with companies which have Specialization in their Fields that you lack/ or are very Expensive / hard to find . Now this doesn’t mean Going with the most expensive one. WHy? You don’t want your company funds to be Drained. But you can always find Companies that will provide Excellent Services with proper R&D Knowledge and will Deliver their Promised Services.
Economically everyone has been Benefited from the Openness and Free trade.Protectionist and Isolationist policies (apart from some sectors) lead to Typical Efficiency and Failures.
Outsourcing doesn’t mean in any way for company members / Employees not to grow more in their Field in any way. This is Typically applicable only for certain areas and has to be monitored and Taken care of in a very efficient and Disciplined Manner.
Here are Some Areas in startups which they May Consider outsourcing:
Payroll:
This is Something must in the company and the company has to hire and Invest a large amount in Hiring , Onboarding ,providing external benefits etc. On the other Side Maintaining it Properly is a tough Job if Qualified Employees aren’t hired . A company may also have to Pay Billions as a fine if they have Incorrect annual Payroll Information.
Outsourcing Payroll may also protect you and your team preventing Legal Punishments too. Also Startups must be run with Cost Effective , Innovative Solutions for their Business to Grow in Competitive markets.
Administrative Duties:
Now the Duties That may be Outsourced Include Responsibilities like taking notes , Answering Emails to Workers. It can Also Include tasks like Employee Hours and meetings which have found to be Beneficial if there is no HR Department. Also the Company Executives can spend their Time in a far better way in their Core Work.
You can also have a Full track Record of the Person because Outsourcing it to a better and Efficient Service Provider Reduces chances of Discrepancies. It will also make sure that your Company is well Organised and Doesn’t miss any beat while Communicating with the Client / Business Partners or Investors.
Customer Service:
Today’s Customer Service that we are getting at one click through Chatbots , on call etc were not a thing a few years back where there was Specific timing and only Phonecall / Letters could be answered with very less Efficiency. Now there are a number of channels that Provide Customer Service in the form of emails , phone calls , in-app Helpers , Social Media etc.
There are Different Time Zones and languages and if the same process is followed it won’t be able to Satisfy Customer’s Query. This is attained by Outsourcing this service . A lot of Big Companies Like Samsung also do it already. Even Startups can do it by choosing their Outsourcing company wisely at an Effective Cost , this makes their Brand image better by providing Instant Solutions to their Customers.
IT Services:
The Technology is Constantly Improving and Evolving , Also the Competition in all the Fields have Increased . You may very well know that if you are taking a lot of time in making or Developing a Product, you may see that getting launched by some Competitive Company.
Outsourcing Services related to IT may be one of the things that will keep you an edge over your Competitors . In this way you can work with the best cream of the market without spending money in Hiring etc. most of the Companies have Digital websites and means of Operations. Bad IT service can lead to mis management in the operational functions of the company .
Now the Project managers and other Employees can Focus more on work without much of a do . You can Also Provide it as a Customer Assurance in Functionality and Security in your Online platforms. This creates a Better Market Image for you and Provides a competitive edge in the market .
- Tanishq Agrawal
