Outsourcing for Startups - the Brownie Points

Outsourcing is the technique to use outside firm’s services that could be done in-house. Startups could outsource many services to cut cost and for better functioning like payroll, accounting, distribution and many other services. Startups at the same time have limited man power to divide work or manage operations through delegation hence it becomes a good option to outsource your requirements. Startups must concentrate to maximize profits and outsourcing could make a major contribution in executing their strategic goals and give them an edge over their competitors in terms of profit and market superiority.

Based on our tenures with some of the great startups, there are few factors which we believe any startup should consider before selecting an outsourcing firm.

1.   Cost-cutting: It may not be the only factor but it certainly plays a major role in reducing expenses. That way you could use the capital to invest on other fronts converting your fixed costs into variable costs. Saving cost on one front doesn’t mean you have to compromise on the quality doing so could have repercussions.

2.   Human Resources: Staff for new projects might require training and temporary staff doesn’t perform put o your requirement hence outsourcing for short term projects can be very effective it gives you a more focused staff where you need the most. But some factors needs to be analyzed like how well trained are the vendor’s employee their efficiency and past experience in that field.

3.   Quality Control and Deadlines: These factors are important for a business to give an efficient output with the at most quality and in time. It can have negative effects on the business if your outsourced vendor is unable to deliver you the same. There need to be a disaster recovery plan which should keep your business run uninterrupted.

4.   Level the playing field: It is difficult for startups to match the in house support services that of a large company. Outsourcing can help your startup to act as big as the others and bringing you at a level where you can access the same services and facilities that a large company enjoys like the efficiency, expertise.

5.   Reduce risk: Markets value, competitors, government policies, finances, and technologies all change very quickly. Startup investment carries a certain amount of risk. Outsourcing providers assume and manage this risk for you, and they generally are much better at deciding how to avoid risk in their areas of expertise.

6.   Infrastructure: Before outsourcing your business to any of the available service providers, you must check the infrastructure of the company. Check whether the outsourcing company shortlisted by you has got the required infrastructural safeguards and back-ups that can prevent business disruptions during server downtime. Moreover, try to probe into issues such as availability of sufficient resource that is critical for successful delivery of services.

Beside these points are the in numerous factors that leads to selection of the right outsourcing firm, hows and whys at the same time. Instead of taking any spontaneous decision you must take your time to evaluate your situation and possibly come up with the best solution.

And that is how we at Gapeseed Consulting, work out for the clients. We have established businesses as well as startups as our clients and that is why we call ‘customization’ as a USP at Gapeseed Consulting.