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Benefits Of Outsourcing For Startup Companies

Benefits Of Outsourcing For Startup Companies


Today’s startup companies operate in a very exciting time. They have almost endless possibilities, with many technological tools working at instant speed, at their disposal. Even society’s perspectives on ways of doing business evolved. Half a century ago, the thought of an entrepreneur working with someone halfway across the globe may sound ludicrous and impossible. But presently, this has become the norm.

Outsourcing for startups is fast becoming acceptable, and for some, recommended growth strategy. While outsourcing per se carries many advantages for businesses of all kinds and sizes, startups, in particular, are positioned to gain a lot from outsourcing. These are the benefits start-ups may experience by outsourcing:

1. Lower operating costs. Outsourcing is an attractive strategy for startups to take because of its huge cost-savings benefit. When outsourcing, startups do not need to invest in the additional equipment, office space, not to forget the recruitment, training, salaries, and benefits of the new hire. All these heavy investments will be taken care of by the outsourcing provider, giving startups a bigger wiggle room for their capital. Startups also save precious time by not engaging in the tedious hiring process themselves.

2. More scalable operations. Outsourcing frees startups from permanently hiring staff that they may not need in the long term or continuing basis. Hiring full-time employees at the early stages of a business is a huge financial investment that may be challenging to recover later on for startups. Outsourcing allows startups to work with extra, professional hands-on a per need basis, allowing for better flexibility and lesser labor costs.

3. Better focus on core responsibilities. Startups usually begin with a limited number of employees with very specific tasks and functions. But as the business grows, the list of tasks also grows, but the number of employees does not necessarily grow at the same pace. The unpleasant effect is existing employees taking on more and more responsibilities, which contributes to less optimal work performance. Outsourcing for startups is helpful in this way because non-core tasks can be delegated to the third-party provider, while your employees keep on doing the job they do best.

4. A more level playing field. Outsourcing gives startups a big boost toward success because they now have access to the same level and quality of experts and technology that larger companies enjoy. Instead of developing their own, in-house team of designers, for example, startups may outsource a professional designer to work on their communication needs, on a per-project basis, and still come up with quality results that are at par with their more established competitors.

5. Improved efficiency. Outsourcing helps startups move and make decisions faster because outsourcing providers already have everything in place – people, process and equipment – to get the job done. This contributes to greater efficiency and better service for the startups’ customers.

Outsourcing for startups is a strategy worth considering because the amazing benefits they offer are real. In fact, a growing number of now-successful startup companies outsourced certain functions of their business during their early days. Lower operating costs and higher levels of scalability, focus and efficiency on a more level playing field are just some of the many benefits startups may gain by outsourcing.

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Magellan Solutions
Magellan Solutions
Magellan Solutions is a Filipino-owned outsourcing company. It provides inbound and outbound contact center services as well as other business process outsourcing (BPO) services that cover finance and accounting, healthcare, sales and marketing, engineering, architecture, design, data management, human resources, legal, and IT. Combining years of experience; unrivaled expertise; and capabilities across industries and business functions, Magellan Solutions bring optimum approaches to strategies of business operations by delivering customizable BPO and customer management solutions to any type and any size of business.