Have you ever wondered how many of the world’s business tycoons grew their business? We all know that managing a business is difficult, let alone drive it to huge growth.

There’s a lot of things to determine, from managing finances to finding the right staff, to even addressing customer concerns. But one thing’s for sure— you can’t do it all on your own.

This is why entrepreneurs turn to employees and professionals for help. They have the right skill set and experience to drive the business into achieving their goals. However, you can’t just possibly hire every person you need for your business. After all, you’ve got bills to pay other than employee compensation!

So, how can you get the expertise you need without adding them to your list of employees? Simple— outsource. And in this article, you’ll discover how outsourcing may be the key to getting your business off the ground.

What is outsourcing?

Outsourcing is simply hiring a third party to fulfill a certain process or task. They provide you with their services, and you pay them according to how much you’ve agreed upon.

In outsourcing, you’ll have to negotiate with the third party on the scope of the work as well as the compensation. This is because you’re both entering into a contract, which can lead to fines and damages once breached.

A great example of outsourcing is when you hire an independent developer to create your website. You hire them according to their skills and expertise, and you expect them to develop a website that exactly meets your business needs.

How can you benefit from outsourcing?

You might think that only large companies can benefit from outsourcing. This is most definitely untrue! Startups can also reap the good from outsourcing despite its size. These benefits include the following.

Saves money on labor

Hiring staff means you’ve to pay them the appropriate compensation. Employee salaries are usually based on their skills and expertise, which can be a bit hard to cover if you’ve only started.

However, outsourcing can decrease costs of labor. This is because you only pay a fixed price to the outsourcing company for their services every month or pay period.

Reduces infrastructure costs

Regardless of the industry you’re operating in, technology and infrastructure are important to keep your business thriving. However, investing in infrastructure costs a lot, especially if you’re developing it in-house.

When you outsource, on the other hand, the infrastructure cost lies with the outsourcing company. This means they handle the development or investment of the required technology to carry out the tasks seamlessly.

Access to more talented individuals

Driving your business to grow requires talent. Your employees are talented enough as they are, but some processes need the expertise of others, which can be thousands of miles away.

This is where outsourcing helps. It opens doors for you to access global talent in just a few minutes. For example, many large companies outsource their IT in companies located all over the world, such as India, China, and Poland. Other companies also outsource other processes such as HR and customer service in countries like the Philippines. Meaning, outsourcing exposes your startup to fresh talents globally, allowing you to scale your business.

Lets you focus on more crucial tasks

As your business grows, so do the tasks and responsibilities of each employee. They will have to juggle accomplishing core tasks along with non-critical ones, which can delay completion and affect performance.

Outsourcing helps you focus on the more important tasks by making third parties do the job for you. For example, when you outsource customer service, your team won’t have to respond to each customer concern anymore as there is already someone who’ll do it for you. This can help you focus more on profit-generating tasks such as product research and development and marketing.

Allows you to scale up or down as necessary

Startups typically undergo fluctuations in their workload as well as changes in business needs. This brings the need to scale your business up or down as necessary, and you end up hiring more or laying off employees.

When you outsource, however, you can easily get the workforce you need in no time. Outsourcing companies can deploy resources rapidly when there’s a high demand and scale back during downtimes. This allows you to swiftly respond to changes in the market, without jeopardizing your chances of success.

Outsourcing has helped many startups to grow. It allowed entrepreneurs to streamline their processes without the need to spend more financial resources. Outsourcing has also become a great way to adapt to customer and business needs, allowing them to thrive in an ever-changing market.