5 Ways Startups Benefit from Business Process Outsourcing Services

5 Ways Startups Benefit from Business Process Outsourcing Services

In order to see your business as efficient, you need to ensure that your clients get a satisfactory service and that your operations remain profitable. Nothing more, nothing less. There’s no rule about whether your company’s processes should be handled in-house or be outsourced to other agencies. Sure, in theory, it would be better to be self-reliant, however, this is not realistic in the present-day business landscape. 

Look at it this way, even some of the world’s greatest conglomerates like Microsoft and Apple outsource their production to countries like China, whereas SMBs and startups tend to outsource specialized functions like IT and general virtual assistant services. Either way, outsourcing is an option your business is bound to encounter sooner or later and the choice you make here may just play a deciding role in its future course. Here are several benefits of outsourcing that you should take into consideration.

Cutting costs

The first thing you need to take into consideration is the cost of starting your own specialized department or initializing an in-house business process. Think about one of the most basic examples – the delivery system. In order to handle this in-house, you would have to acquire a sufficient number of company vehicles, hire a fleet manager and pay for the specialized software

Aside from this, you would also have to hire a sufficiently large number of capable drivers and ensure their discipline at all times. It goes without saying that the costs of such a thing would be stellar. Therefore, outsourcing is not only the best choice you have but the only viable choice. Of course, there are some exceptions to this rule, for instance in a scenario where you need a single vehicle, for the time being. Still, a purchase of such a vehicle, alone, would probably surpass the available space in the budget of an average startup.

Specialized service

The next problem you will encounter when trying to establish an in-house department is the problem of proficiency. Think about it, even if you do hire an entire team (let’s say legal team for the sake of this argument), as a startup, you won’t have the privilege of hiring veterans. Instead, you’ll have to bring in inexperienced people (despite their talent and credentials) and wait for them to become proficient enough. 

Running a startup is a race against time, which means that waiting for their skill and experience to blossom might be quite problematic. Click To Tweet

Moreover, they are highly unlikely to use all the high-end software and business practices like AI-based legal transcription system, thus lacking in efficiency.

Simplifying your structure

Another thing you need to understand is that the majority of processes that your startup will face will depend on you. The thing is that, as a person with an idea, you probably have some knowledge or previous experience regarding the core tasks of your company. For instance, the majority of people who decide to start marketing agencies have probably already worked in a marketing agency before. During the research for the startup alone, you can acquire so much knowledge on the topic that you may become somewhat proficient at it. 

However, the same does not apply to every single aspect of running a business. As a seasoned marketer, chances are that you don’t know the first thing about HR. This is why it’s easier to outsource your HR than to start your own department. Think about it, the very process of vetting the right head for the department can be a nightmare. In this way, you can just have someone else oversee it.

An outsider’s perspective

The next thing worth mentioning is the fact that in some scenarios you need an outsider’s perspective. For instance, when hiring a marketing agency to do a branding for your startup, you get the privilege of getting an outsider’s opinion of your business. Think about it, your own marketing department is still a part of your team and has a biased view of your organization. 

As a part of your structure, they also start from the point of brand awareness instead of going through the stage of brand recognition, in the beginning. This is also great for customer service, seeing as how they start from a position that’s much closer to that of a client than your in-house customer service team ever could. This ability to distance themselves from your company, if only just a bit, can make a world of difference when it comes to the outcome.

A scalable solution

At the end of the day, you need to understand that outsourcing tends to be an incredibly scalable solution to your problem. Click To Tweet

Most agencies work with multiple clients and have different arrangements with different businesses they work with. This means that, as your company grows, you can change your contract and switch to a more encompassing plan or change your partner altogether.

Conclusion

The problem with outsourcing lies in the fact that most entrepreneurs prefer to keep everything under direct control. This, however, is a psychological problem that they will eventually have to overcome in order to grow their business and future-proof it in order to endure the long run. In other words, outsourcing gives them more room to focus their attention and resources elsewhere.