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6 Ways Outsourcing Jumpstart Startups!

Posted by Infinit-O on Dec 26, 2018 8:00:00 PM

Topics: General Business, Outsourcing

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The world’s busiest economies practically consists of startups. According to Startup Rankings, the USA had 28,862 startup companies in 2018. India followed at 4,781, while the UK had 2,989 companies. All these small business owners face one challenge: starting and sustaining a profitable business. Unfortunately, not all startups make the cut. The global average of closing down within one year is at 90 percent. How then does the other 10 percent make it?
 
A Deloitte global outsourcing survey reports that 53% of startups outsource their IT functions, and that 66% similarly delegate other process-based tasks. Outsourcing isn’t just a cost-effective solution for these startups, it is an imperative for them to compete and grow. Delegating important operational tasks such as finance, accounting, IT, RCM, analytics, research, and customer service to ensure consistent and smooth operations as well as cost savings. As a result, the company is more prepared to manage the difficulties associated with expansion and building its business. Here are some specific ways outsourcing enables company growth.
 

1.    Sharper Focus on Core Business (Do what you do best)

Business owners tend to assume they can do just about every task and head every department in their company. This can shift your focus away from developing your product and ensuring consistent growth within your first year. As your company expands, so does the amount of work needed to be done for back office operations such as finance, human resources, and IT. Outsourcing lets you leave these crucial operational tasks to the experts. At the same time, you can rely on them to deliver the work efficiently and quickly.

2.    Lower Overhead Costs (Spend your money wisely)

Company expansion entails more tasks that involve even more people. Your current office may not have space or budget to accommodate HR, finance, and/or customer service staff. An established outsourcing company, however, has space and is likely to hire a dedicated team for each task. Outsourced labor for these operations save you thousands in overhead costs such as office space, utilities, training, and monthly salaries.

3.    Minimize Distraction of Hiring and Managing Staff

At this point, your startup can’t afford high employee turnover rates. Adding a new HR or IT department may increase this likelihood. It will also add uncertainty to your current operations. An outsourcing company would take care of all aspects involved in back-end operations. From hiring, training, to maintaining employees, you won’t have to worry about the risk of additional staff.

4.    Bigger Savings Mean Longer Runway

Forty-six percent of startups tend to overspend and run out of money fast. Those who employ outsourcing save more than half in overhead costs. You end up not overspending at all on tasks you can’t afford. Outsourcing is especially helpful for companies that don’t have the technology or hardware to perform more complicated back-office functions.

5.    Ramp Up Your Reputation and Delight Your Customers

Product or service-based startups need to build a positive reputation in their first year. An upstanding customer service department can help achieve this. While your current staff may not have the training to answer customer queries, an outsourcing company has years of experience in this field. Many customer service centers are available 24/7, assuring customers of your constant presence.

6.    Gain Valuable Data Insight to Cultivate Further Growth

Every startup must make the necessary assessments to improve their systems in the long-run. Cloud-based tools allow startup owners to gather data on their processes. Data include conversion rates, task lengths, and the average revenue per user. The information is used to assess overall efficiency and productivity. You can also assess the effectivity of your marketing campaigns and landing pages. Some outsourcing companies combine these data insights along with the analysis of their experts.

Every startup wants to experience success and outsourcing can move you closer to that dream. Infinit-O, a customized business solutions provider, has the solid and deep experience to support your company. We offer a vast range of data and research services that can be tailored to your business’ specific needs. Everything from application support outsourcing, research design to implementation, to data processing and reporting. All these tasks are geared toward the proper and secured management of your business data. Talk to us today to find out how we can help your business expand.

 

 

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