Can Startups Benefit from Offshore Outsourcing?

May 17, 2017| read

By Aisa dela Cruz

outsourcing services philippines startups

In this age of modern business, startups often face a multitude of challenges and opportunities. As you strive to bring innovative ideas to fruition and establish your presence in competitive markets, the question of how to best allocate your resources always comes up. You might have already heard that offshore outsourcing services is a common strategy that’s been used by a lot of companies and that include startups – from the unicorn ones to those who are just starting to get a foothold. It’s no secret that countless successful startups were built using the support of reliable outsourcing providers.

In this article, we’ll talk about whether outsourcing can positively impact a startup’s trajectory by delving into the advantages, considerations, and strategic approaches that can potentially make it a valuable asset in your entrepreneurial toolkit.

So can startups benefit from offshore outsourcing services?

Industry Experience and Talent

First and foremost, startups benefit from offshore outsourcing providers that use highly experienced talent and streamlined business processes. Most of these companies are in countries with a vibrant outsourcing industry like in the Philippines. Their workforce is full of individuals with solid outsourcing work experience. So offshore outsourcing service companies can provide startups the same caliber of professionals utilized by major multinational organizations. There are currently hundreds of diverse roles being outsourced from different industries. Apart from the typical customer support, data processing, and software development, outsourcing has matured into other facets such as content moderation, digital marketing, graphic design, human resources and recruitment, data analytics, market research, regulatory compliance, and the list goes on.

Outsourcing companies are also experts when it comes to streamlining business processes. When companies engage in offshore outsourcing, they not only gain access to a pool of specialists but also those who possess deep industry knowledge. This is particularly useful when outsourcing tasks that require specific domain understanding. Offshore service providers often have a lot of experience in handling similar tasks for various other clients. As a result, they bring valuable insights and best practices to the table. This can definitely help your startup minimize road blocks, anticipate problems, and operate well in different work processes, whether it be front or back office tasks.

Team Reinforcement

Every startup naturally begins with a small team of talented people — a.k.a. the dream team. As your business grow and gain traction, you get hit with more responsibilities and it just becomes hard to keep up. By using an outsourcing company, your startup can free itself of tedious tasks that can be done by external specialists. Simplify your day-to-day operations and augment your in-house team when you assign tasks such as customer service, data processing, etc. Delegating them beyond your normal hours or even on a 24/7 basis is also an option you can benefit from.

Ultimately, you get to spend your most valuable resource time. Time that is better spent on developing and improving your core products and services.

Cost Efficiency

One of the top drivers why companies look to do offshore outsourcing is for its affordability. Your startup can save a ton on both overhead and operating expenses by tapping into a global pool of highly skilled professionals at budget-friendly rates. This is because these skilled workforce are usually living in emerging countries that have lower labor costs. With your newfound cost savings,  you can supercharge your research and development, sales and marketing, or other activities to propel growth.

In case you’re wondering just how much can you save, feel free to check out our article where we discuss the economics of costs and savings at length.

To recap, outsourcing can be a cost-efficient means for your startup, enabling you to access specialized skills, scale your operations, and allocate resources strategically.

Is Your Startup Ready to Use Outsourcing Services?

Is your startup ready to expand and use offshore outsourcing services? The answer lies in the state of your startup. If your company outsources while undergoing major adjustments, it may work against you in terms of time and cost. Offshore outsourcing is ideal to those that have set up a clear workflow and achieved steady operations at a certain degree. There are also other prerequisites you should consider.

Want to know what these prerequisites are? Check out the 5 signs if your startup is ready for outsourcing.

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