8 Things Startups Should Know About Outsourcing

8 Things Startups Should Know About Outsourcing


For a startup gaining recognition and getting through its teething stage sometimes can be overwhelming. There are multiple processes such as hiring, training, outsourcing, branding, marketing, sales, and the list goes on. Outsourcing among the list is the most common practice nowadays startups are using more for the smooth flow of their business operations. It can lead to a higher productivity level that too at lower costs. The right way of outsourcing depends a lot on the nature, scope, and goals of the business.

Outsourcing Tips for Startups

Outsourcing Tips For Startups

A company can outsource its multiple business functions but there are certain things that startups must know about the process of outsourcing. Research says that when startups outsource their projects, they can save up to 60% of the overhead costs. It is always better to take a step back and research thoroughly before outsourcing business functions.

1. Select Right Outsourcing Partner

The list of outsourcing companies in the market is huge. As a startup company, you should spend time researching the BPO agencies that will not only fit under your budget but also have ample facilities and market reputation in offering their services. Conduct your thorough research and speak with the company representative and learn more about their service delivery from 3rd party sources like social media, Glassdoor, Google reviews, and so on. Remember that choosing the right outsourcing partner is very crucial for business growth.

2. Consider Technology Standards

Technological standards are a very important aspect to consider before selecting the outsourcing partner for your business. The company must use the latest technology and updated infrastructure otherwise your project will not cope up as per the market demands. For instance, your website should be responsive in nature and the web and mobile applications should be mobile-friendly. As mobile usage is significantly increasing day by day, the aspect of mobile-friendly should be taken into consideration that requires the latest technologies.

3. Personalized Communication

Do not outsource where you don’t get the guarantee of personalized communication. Why? The reason is sooner or later after the project delivery you will encounter ample technical issues that need to be fixed immediately for a smoother flow of business operations. Ensure seamless communication with your outsourcing partner so that you can get an immediate response. Comprehend the difference in time zone while deciding on outsourcing.

4. Intellectual Property Consideration

Nowadays piracy is practiced everywhere. Research says that almost 61% of the software used in Asian countries is pirated. Hence, it is your responsibility to secure the intellectual property rights of your products against misuse and theft. While outsourcing, always checks for the security and privacy of the data and information which are very vital for your business. It is better to create limitations and another aspect by drafting a non-disclosure agreement with the BPO agency. Seek legal advice if you have any doubts and questions.

5. Technology Used by the Company

If your product or service requires a special technology or software, always ask the company personnel before handing the outsourcing development work to them. It is advised that if it is possible to manage an in-house team then go for that. However, it will take more time and capital that can be a constraint for startups. Outsourcing in this case will be the best solution if the required technology is available with your business partner and make sure about the security and privacy concerns regarding your project.

6. Cost of the Services Offered

Payment consideration is the most vital aspect when a company outsources. Whether it is a startup or a multinational company, cost-effectiveness is the main aspect that they look for in the process of outsourcing. However, do not always go for cheaper services. Always check the quality-of-service delivery and the turnaround time of a company. Choose companies or freelancers having domain expertise, skills in using modern technologies and deliver your project in time. Quality service will always fetch good returns in the long run be it in terms of customer experience or profitability.

7. Create A Statement of Work

Whenever you are thinking of outsourcing your business functions, you should always create a statement of the listed work and functions that you will outsource. Create a document of questionnaires that you will ask whenever you will consult a BPO company. Either use software or technology that helps you in managing your work efficiently by creating a checklist. You should know what needs to be asked and what are your expectations from your outsourcing partner that can be achieved only when there is a proper checklist.

8. Update on Work Progress

If you are thinking of outsourcing your projects, then check with the BPO agency regarding the communication. Communication is very important from both ends. The company should provide regular updates regarding the progress of the work to its client so that both parties remain updated. To keep abreast of the work procedure. Startups should be involved in the ongoing developmental work such as providing suggestions, clearing doubts, and sharing ideas. This will not only yield a better service delivery but also you can get a better understanding of the process of work.

Wrapping Up

In the competitive world, where everyone is trying to be more perfect, creative, tenacious, and productive to rule the market, a startup always considers the process of outsourcing as your master key of business development. Starting from customer support to data entry, business process outsourcing (BPO) to photo editing services, there are a plethora of services you can outsource. By considering the above-mentioned checklist, you will master the process of outsourcing. Conduct research on the market demands and gradually implement those in your business process to achieve the maximum output.

Scroll to Top

Get a Quote