Why should Startups Outsource to a BPO / KPO

Outsourcing can help you expand your talent pool, cut overhead costs and procure expertise in tasks.

Do you have a startup and are working day and night to handle its operations but are not getting the results you deserve? This is because over-loading yourself with every task of the business is not the path to become a unicorn company. Smart decisions and effective management is. Major companies all over the world are turning to outsourcing as a way of work.

We are not saying this, the statistics are. 74% of the companies outsource IT services, 53% outsource human resource functions, 43% companies outsource the procurement process and 39% outsource finance. [1]

A successful business is not one entity, it is a group of several genres of tasks revolving around your business idea to produce high profits. For instance, a clothing start-up comprises of raw material procurement to creating a digital presence to customer support services and everything in between.

Top reasons why startups should outsource jobs to BPO in India
Top Reasons why Startups should Outsource

Start-ups try to do it all fearing high costs or loose of control and thus suffer in the long run. Let’s look at some reasons why you MUST outsource as a startup founder.

1.Lessen an unmanageable workload- There are some tasks like Data Entry and Bookkeeping which are laborious and require a lot of time whether it is done manually or digitally. In this era where data holds the upmost importance, you need an individual committed to working solely towards maintaining it. Outsourcers help you Target the right audience, keep a close competitor watch and minimize errors which may occur due to multitasking by the core startup team members (that are typically very less in number)

Performing all tasks in-house also hampers your entrepreneurial innovation and creativity. Trying to step in all the boats at the same time leads to an unmanageable workload and the quality of work suffers in the long run.

2.Outsourcing saves money– Yes you read that right. Unlike popular belief that having more hands will increase cost, outsourcing actually helps in cutting overhead expenses. Let’s see how.

If you hire an employee, you need to give him an office space, a cabin and a desktop to work with. In additional to this, there would be certain insurance you provide to the employee and other gratuity benefits.  On the other hand, when you are outsourcing the job to another company, all you do is pay the price of the services and receive the same (even better) performance and output.

 In case of freelancers, it is even cheaper to get tasks like Digital marketing or Social media management done. Digitization is ardent for businesses today and building a brand presence online is not an easy task. It requires articulate attention, persistence and commitment.

3.Expand your talent pool- You may have entrepreneurial members who lack tech or a technology savvy team who lacks communications Skill (essential for PR and HR). Human beings cannot be perfect and have their own specialized niche of work. When tasks outside their expertise are assigned to them, it not only leads to a poor quality of work comparatively, but also affects their zeal to work for the company.

When you opt for outsourcing, you hire the specialist in their respective fields. A specialized HR will make sure you hire the ideal staff that is able to maximize leads and enhance the business operations and productivity. In case of graphic and web designing you can even take samples from multiple companies and then choose the best talent for your company.

4. Outsourcing saves time- As mentioned before, a business requires focus and persistency in all branches of its operations be to successful. Production is as important as after-sale services which are in turn equivalent to taxes and accounting.  Outsourcing such tasks helps you focus on the more important elements related to growth and expansion of the business.

Taking such tasks off your plate gives you time to analyze the business operations and come up with innovations. Being swamped in tasks that are not your niche will distract you from your goals and plans for the enterprise.

The Bottom Line

In order to start outsourcing, you first need to outline the different business processes in your firm. What are the day-to-day operational tasks, what are creativity based, which ones require number skills and so on? In this process you also analyze the tasks that you need to adopt to compete with the brands out there. After that, scrutinize your current team aka workforce to determine which task is already in good hands and the ones that require another expert for optimum results.

Now that you know what you need, look for an outsourcing company that meets your demands and fulfills your business objectives. Remember, your core activities and goals should be the upmost priority in the whole process. [2]


[1] https://www.entrepreneur.com/article/326492

[2] https://www.microsourcing.com/learn/blog/a-guide-to-outsourcing-tasks-for-startups/

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