Thursday, April 8, 2010

The Top 6 Benefits Every Start-up Shoud Know About Outsourcing... But Probably Doesn't

  1. Focus on your core business. Do not spend time doing projects which take you away from growing your core business, jobs you dislike or even are not good at. By outsourcing you get to focus on your business, while they complete the project, you have been dreading for months. Time is money!
  2. Reduce staff costs. When you outsource you do not have to deal with tax laws, desks and office space, superannuation, sick and vacation pay. You also have the benefit of hiring someone for a short term project that otherwise may be too expensive for a fulltime basis.
  3. Increase flexibility. Have the flexibility to decide how long you need your remote developer(s) for, what hours and days the work. You can attract the whole team for specializing projects which are selected especially to meet your requirements.
  4. Control capital costs. Cost-cutting may not be the only reason to outsource, but for startup companies with their limited budget it is certainly a major factor.
  5. Start new projects quickly. Handling the same project in-house might involve taking weeks or months to hire the right people, train them and provide the support they need. And if the project requires the capital investment the start up process can be even more difficult.
  6. Increase efficiency. By utilizing the existing infrastructure of an external provider you get the economies of scale which can increase your efficiencies and give your business an important competitive advantage. You also get the knowledge and skill set of a professional.

The new way out for startups - outsourcing

Small businesses have got a small budget but large needs. For small business owners one of the biggest challenges is wearing all the hats and the smaller the business, the more aspects of it you need to look after yourself. Startups originally go into business because they have a passion and skills for a certain product or service.
However, the skills may not include the operational, marketing or financial end of the business. Every small businesses have got some essential but non-core activities which take much time and could be better spent servicing existing customers or developing new ones.
In the past startup businesses were limited to two choices:
Wear every hat; fill every role, to the best of our ability, hoping that there will be time to seek new clients or cope with the existing already ones. But as they say grasp all, lose all.
Or hire the employees to fill those roles so that to focus on growing our business. In this case you should bother about searching for the personnel, selecting, hiring, establishing the team and what the most important - to wade through the red tape.
However, the third choice, which is growing popularity is outsourcing. This is when you engage the services of an external provider who is an expert in a particular field.