Building a startup with a limited budget and resources is a challenging task. New entrants have to struggle hard to compete with market leaders and fulfill their clients’ expectations. To cope with these challenges, companies can outsource some of their operations to subcontractors and focus on the most critical organizational functions. Additionally, outsourcing helps them reduce capital cost, recruit skilled employees from a wide talent pool, and operate round-the-clock without any break. Nevertheless, some risks are also associated while working with outsourcing agencies. This article explains five essential tips that entrepreneurs must know to build a better startup through outsourcing.
Carefully Outsource Your Operations
Partnering with the provider of outsourcing services can indeed help your business expand and grow at rapid rates. However, not all organizational operations can be outsourced to third-party vendors. Some tasks need to be in-housed and confidential and not subcontracted to any other organization depending upon priorities. For instance, companies that want to generate large revenues will use their in-house team and special sales techniques and will not outsource such tasks to a contractor. Some of the relevant outsourcing percentages for different departments are 27% for IT, 16% for HR, 15% for Sales and Marketing, 11% for Finance, and 9% for Administration respectively.
Carefully Choose Outsourcing Country
The location of an outsourcing vendor plays the most critical role in determining the quality of services and project costs. There are several key factors that entrepreneurs must look for while choosing an outsourcing country. For instance, employers must analyze the data privacy and confidentiality measures taken by outsourcing agents, their track record with previous customers, legal protection system, expertise in the relevant area, cost-efficiency, domestic labor laws, and availability of required infrastructure. Most of the entrepreneurs outsource their operations to third-world countries like Pakistan, India, Eastern Europe, and Central America due to their poor economies and low labor rates. Nevertheless, employers should never compromise on the desires skills of remote teams to ensure excellence.
Focus on the Requirements
Whenever employers think of outsourcing operations or hiring remote teams, they should have certain requirements in their minds that must be fulfilled. For instance, if an entrepreneur is looking to outsource tasks that demand highly skilled expertise, he or she should ensure that the outsourcing agent is capable of completing those tasks efficiently and economically. Likewise, project requirements also play a key role in implementing the planned strategies and completing the project tasks without compromising work quality. Therefore, entrepreneurs must fully concentrate on project requirements and partner only with those subcontractors who can accomplish the desired objectives and complete the assigned tasks within defined deadlines.
Consult with Professionals
Business consultancy is key to success in today’s highly competitive and dynamic corporate environment. In the modern era of digitalization and technological transformation, it has become quite easier to interact with industry professionals from anywhere. Hence, entrepreneurs should collaborate with experts in their respective fields and seek their suggestions to organize well-planned strategies. Similarly, employers should also conduct some research studying business case studies available on the internet and learn from the experience of companies during their development phase. Some organizations also offer industry-specific customized business consultancy services that can help entrepreneurs build a roadmap and avoid potential mistakes. Cooperation will help them achieve their set goals efficiently and build better startups.
Proactive entrepreneurs always outperform their competitors and lead the global market. Outsourcing operations to subcontractors do not mean gaining liberty from performance assessment. Employers have to regularly monitor the progress of project activities by interacting with remote teams through digital platforms. Similarly, interaction allows entrepreneurs to effectively communicate their vision with remote workforces and motivate them to achieve the set organizational goals. Open communication also promotes teamwork and enables remote employees to discuss the implementation of planned activities with the employer. Consequently, all professionals work as a team and help the entrepreneur achieve corporate excellence. Trusted outsourcing providers like Khired Networks allow employers to interact with remote teams through modern IT infrastructure and analyze their performance to accomplish the desired objectives.
Business Process Outsourcing (BPO) is the solution to rapidly expanding markets and a competitive corporate world. Entrepreneurs entering the already saturated markets and establishing startups need to work hard and follow a proper roadmap to effectively outperform their rivals. In this context, five tips should be followed to successfully build a new startup through outsourcing. Employers should carefully choose the operations that need to outsource and their destination country. Likewise, they should fully concentrate on project requirements and ensure that their partner subcontractors can implement the planned strategies efficiently. Moreover, they should seek consultancy from leading industry professionals to build a roadmap and avoid potential mistakes. Lastly, employers should regularly monitor project progress and collaborate with remote teams to accomplish the desired objectives.