3 Reasons Why VC-Backed Companies Should Outsource

Startups play an important role in driving economic growth because of their ability to generate more job opportunities and create new markets. Despite facing challenges due to the impacts of the pandemic, there is surprisingly a surge in startups observed during this period, which can be attributed to changing consumer needs and rise in entrepreneurship.

Funding is vital for startups and one way they can obtain this is through venture capital (VC) firms that provide small businesses with capital, technical expertise, and strategic assistance, among others in exchange for an equity stake. VC-backed companies and startups are characterized by their potential for long-term growth and expansion as well as their dominant position in an emerging market.

But there are pressing challenges that startups face which are:

• Difficulty scaling quickly
• Finding great talent and the expensive talent pool
• Limited budget and resources from funding
• Requirement to hit board-driven milestones from funders

As a VC-backed company, outsourcing your internal operations is one way to usher growth in your organization and maintain operational efficiency because of the following benefits.

Better focus on core competencies

Due to limited budget and resources, the typical small business or startup set-up usually involves just a core team that performs all the tasks. As the business grows, customer demands will also increase and sometimes, it can be too much for you and your in-house staff to handle. This can result in labor shortfalls and losing focus on your core competencies that drive your business.

By investing in outsourcing, you can have a dedicated team to handle some of your administrative tasks and services such as human resources, finance and accounting, customer service, and other areas where you might need extra hands. More importantly, you can put your focus back on developing new ideas and improving your startup with your team.

Scale business with speed

Having the right outsourcing partner means you have access to world-class talent because these companies usually have A+ recruitment process who knows where to source experts that will fit your company’s requirements and unique business needs. Their well-established recruitment can also build you a great high, performing teams within 30-45 days from hiring to onboarding. It means that in a month, a highly experienced team members can start working for your business as soon as possible.

Assistance from partner with higher expertise

Jumping off from the previous point, outsourcing does not only provide you additional people to help out with your processes but also access to a talent pool of skilled and experienced professionals. Some business owners may feel hesitant to entrust their data and information to a third party company. However, partnering with the right outsourcing provider can guarantee increased quality and efficiency in the workplace that in turn, can translate to better service to your customers.

Outsourcing also gives startups a more level playing field with competition because it allows them to have access to the same expertise and technology that these bigger and more established companies enjoy.

Capital efficiency through cost saving

One great way to lower operational costs is through outsourcing. As mentioned, startups have a limited budget to spare, so it’s important to invest on something that will not only save you money but also help you put your business forward.

First, outsourcing can lessen overhead expenses because there’s little to no need to invest in office space and infrastructure as well as hardware and tech since your outsourcing partner already has those covered. You’ll also be able to cut on hiring costs including salaries, trainings, and benefits for employees.

Outsourcing also allows you to scale your operations up or down depending on what is needed, which reduces labor costs and enables flexibility when it comes to hiring people.

Data shows that in 2019, startup failure rates are at around 90%. According to Investopedia, some of the most common reasons for this are market problems, lack of research, poor management, and running out of money. So when it comes to your business needs, choose an outsourcing partner that can provide you the following:

• Collaborative partnership
• Access to talent through their A+ recruitment process
• Cost savings of up to 70%
• Ability to scale quickly and predictively
• Hitting milestones and targets
• Adaptability in technological advancement
• Established Information Security
• Operational excellence
• Information and data security
• 71 Net Promoter Score: Sense of security and peace of mind

Partnership with Infinit-O

Infinit-O’s mission is to create endless opportunities for your company to realize its full potential.

Our business solutions enable high performance and optimized operations for businesses of all sizes and stages. Infinit-O offers a broad range of outsourcing solutions, including healthcare; finance services; research, datta and back office support; and customer experience.

Start small. Exceed expectations. Think infinitely. Think Infinit-O.