Why Outsourcing is good for Startups?

Among the billions of people worldwide, there are many talented and ambitious entrepreneurs with unique ideas. They have built thousands of young companies to serve our lives and transform this beautiful world . The new businesses created by these entrepreneurs are called Startups.

According to Chet Holmes, in the Startup World, only 5% survive by the end of 5 years time. Competition is fierce, every single day. They all want to sell their products, offer good service and double their profit scale. A common problem is undercapitalization and limited ed financial support, staff issues and just plain timing.

As a CEO of a startup company, one must be prepared to put in double, even triple effort and hours to keep your company going and growing. A startup entrepreneur works like crazy from early morning to midnight to deal with clients, prospects and to find the good candidates who share their me vision. My personal experience is that others look at me like I’m a multi-tasks person. When I look at other startup entrepreneurs I think, You are a Superman!

Like all other beings in this universe, we have only twenty four hours per day and seven days each week. Even if you are a genius, how can you possibly handle everything perfectly and at the same time focus on developing sales and improving your service?

In 1889, the idea of hiring a party outside the company was first recognised after the revolutionary decision of Eastman Kodak. It then became an important part of economic business practices throughout the 1990s.

Statistics have shown that, just prior to 2018, 74% of companies use IT Outsourcing services. By 2018, this number was projected to rise to 87%. Meanwhile, 39% of companies use Finance Outsourcing and this will increase to 92% according to The 2018 Deloitte Global Outsourcing Survey Presentation.

Outsourcing is considered an evolutionary solution for a business, especially with IT Startups for these primary reasons.

Every minute, every second that passes, we will never get back. So, it is crucial to prioritize tasks and decide how to get them accomplished. As a Startup, the core responsibilities are to generate ideas and connect with investors to help develop your business.

Being the CEO of a company does not imply that you are jack of all trades and the master of everything. That is why it’s choose to work with Outsourcing. Hiring subcontractors who is an expert in their field, will make the work done sooner with the higher quality.

Hiring the right people is also important, but it’s time consuming. The hiring process can be quite long. It takes at least a month to interview and find the right candidate. Ten it takes another month for training. And, there is no guarantee that the person you hired will stay with your company.

By using Outsourcing, you can work with either an IT agency or freelancers. The benefit is that they already have the well developed processes and specialized team members . A typical example is GitHub or WordPres., They tend to work with outsourcing companies and remote freelancers and get the results they desire. If that makes sense, then outsourcing might be the right choice for you.t

Working space is of primary importance if you intend to hire a big team. Budgeting for salaries of full — time staff plus their benefits needs to be carefully planned to reduce financial stress.. Taxes are the third expense to consider in your financial plan. That is why outsourcing is especially beneficial to startup companies and why many choose to work with Freelancers.

Technology customers are not really care about you and your staff. What they want is the service and the value you bring to them. Having only one junior developer in your office with limited or no experience on your project can set you up for a disaster.. Wouldn’t it be more beneficial to hire two freelance senior developers with five to six years experience on successful projects for a cheaper price make better sense? So, why not save money by hiring freelancers and invest what you’ve saved in other projects that bring more value!

Many startup entrepreneurs have little experience with business management, so no matter how hard they work, they fail. Imagine, hiring ten full time employees to work in your office. The about the time you would need to spend time in meetings, evaluating their performances, building relationships and training someone to manage them. That’s incredibly time consuming as well as a lot of work and stress. Conversely, by hiring freelancers, your time and resources will be freed up so you can spend them, developing your company, especially during the first stage of startup.

The model the whole world is heading toward is 24 working hours to maximize all the time we have. How can we do it or why would we even want to? If we want to expand our production capabilities, we cannot do this on our own. This is where outsourching comes to the rescue.

And that’s why many startups are beginning to outsource their work to these companies overseas.For instance, if you are based in America, you can work with Freelancers located in Asia. Due to the time zone difference, your Freelancers will be working as you sleep and finish their jobs when you wake up. This framework can expand your production greatly as you can conceivably finish your projects half the anticipated time. Imagine how powerful this is, especially in this digital era, being the first company to launch your product giving you a higher chance to be the winner.

Working with the model based on the rule that 20% of your effort gets you 80% of the results, and not vice versa. As Timothy Ferris said, instead of focusing on doing as much as you can, just focus on doing the few things that will lead to the biggest progress. Hiring freelance developers makes this possible. The cost to hire an in house employee as a developer is really high. Instead of sitting there watching a full time developer put in their 6.4 hours every day, why don’t you hire a freelancer to work only 4 hours with 80% — 90% of their productivity.

In conclusion, Outsourcing should be highly considered by all Startups. If you can master the way to work with the Outsourcing, you would become the leader in the Startup World.

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