What do Slack, Skype and GitHub have in common? They’re all multi-billion-dollar startups that used IT outsourcing to grow their business.
Outsourcing is, by definition, one of the greatest economic resources for startup companies. By offloading essential IT tasks to remote teams, entrepreneurs can focus on what really matters – growing their business.
Although IT outsourcing is commonly associated with large enterprises, it solves many of the real-world problems faced by startups. Flexibility, reduced costs and improved operational capacity are just some of the main benefits associated with IT outsourcing. Luckily, the internet has made this process easier than ever before. In what follows, we’ll show you the benefits of outsourcing and how you can select the best company to meet your needs.
Outsourcing Benefits for Startups
Outsourcing will help your company improve productivity at a much lower cost. By outsourcing your IT, you get trained professionals working for your company at only a fraction of the cost of hiring full-time workers. Outsourcing can help entrepreneurs overcome both cost and time constraints, which often limit growth and expansion. Although some entrepreneurs prefer to do it all themselves, there’s a huge opportunity cost at stake. Each minute you spend doing repetitive, mundane tasks is a minute you could have spent working on your business.
Some of the main benefits of IT outsourcing include:
- Access to dedicated resources that can take repetitive tasks off your plate
- Allows your startup to focus on its core business
- Improves operations
- Cuts costs and avoids capital expenditures
- Increases growth
- Builds business continuity
- Establishes long-term partnerships
- Brings your product or service to market faster
The numbers certainly don’t lie. According to OSF Global Services, 95% of the world’s top 1,000 companies use outsourcing regularly. A recent survey shows that global expenditure on service outsourcing is valued at U.S. $120 billion. This figure will only rise as more small businesses realize the benefits of outsourcing.
Tasks You Can Outsource Right Now
Although there is no time limit to when you can begin outsourcing, startups that are in their expansion phase can greatly benefit from IT help. That’s because these companies rely on things like business management tools, IT infrastructure and customer support management. Having a remote team on hand is extremely beneficial.
If you’re on the fence about your need for IT help, consider whether there’s a routine job you need to perform that is wasting valuable time and energy. If there’s more than one IT job being done in-house,outsourcing is an option you should consider.
The following list includes common IT activities outsourced by startups:
- Security and network connectivity
- Data backup and database administration
- Software applications
- Desktop management
- Server management
- Web development and e-commerce
- Collaboration and Messaging
In general, IT and/or development outsourcing can be broken down into two categories: project-based and long-term. Project-based outsourcing is appropriate for things like web design and specific software applications. For day-to-day administrative tasks, it’s best to retain a partner long-term. That way you don’t have to hire someone new very time a need arises.
How to Hire a Remote IT Team
Finding the ideal development team to run your IT isn’t complicated. In fact, you never have to leave your desk.
The digital age has made it easier than ever to locate developer communities, professional portfolios and freelancers who can help you with IT. Some examples include:
- GitHub: As one of the world’s largest developer communities, GitHub is an open source code sharing ad publishing service. It’s also a social networking site for programmers.
- Stack Overflow: More than 7 million programmers make up the Stack Overflow community, making it an ideal place to source IT talent.
- Clutch: As a B2B review site, Clutch allows startups to research and review top development firms.
- Upwork: One of the world’s largest and most reputable freelancing sites, Upwork features software developers, programmers and remote IT companies.
- Freelancer: Another massive freelancing site, Freelancer can help you outsource your IT needs anywhere in the world.
Before you commit long-term, you should test a few IT developers and make sure their work is top notch. This is a highly competitive market, so companies are eager to show you what they got.
Outsourcing for Growth and Expansion
Outsourcing has emerged as one of the most efficient ways to scale up your small business. Startups of all sizes have realized its benefits, and are amazed at all the results it can produce. The combination of low costs and highly skilled talent means you get your infrastructure built faster and your product launched sooner. This is a win-win combination for any startup looking to scale up as quickly as possible.
Of course, outsourcing isn’t the only way to streamline your startup. Using automation tools in conjunction with IT outsourcing can boost productivity while saving money. Common tasks that can be automated right away include accounts receivable, social media marketing and setting up appointments. To learn more, check out: Ten Ways to Automate Your Small Business for Maximum Efficiency.
Are you a startup that’s looking to take your business to the next level? If your business has already tested its concept and is generating revenue, it’s time accelerate your growth.
Red Door Capital offers dedicated solutions for helping startups realize their growth potential. We help entrepreneurs overcome funding challenges and regulatory bottlenecks to find the best financing solutions without the catch. Check out our Growth and Expansion services to get started. To explore your financing options, contact us today.
As the economy continues to evolve, freelancing and outsourcing will become more commonplace. If you haven’t already gone down this path, there’s a pretty good chance you will in the future. As an entrepreneur, it pays to stay ahead of the curve.
John Boitnott. “Why Outsourcing May Now Be the Best Way to Grow Your Startup.” Inc.com..
OFS Global Services. IT outsourcing, the new “it” for start-ups..
John Rampton (June19, 2015). “These 25 Successful Startups Were Built With Outsourced Development.” Entrepreneur..
YEC. “10 Things Early Startups Should Outsource Completely.” Business Collective.