5 Effective Ways in Building an Outsourced Team for Start-ups

No company can prosper without adequate staffing. Every business needs a dependable workforce to operate smoothly and grow over time. Moreover, running a business involves many tasks, from tracking sales to creating marketing strategies. To get everything done, it’s crucial to have a team of the appropriate size.

Unfortunately, not all companies can afford to have sizeable in-house personnel of various departments and teams. Start-ups, in particular, have a very limited workforce. Therefore, if you’re currently running one, you may notice that you and your staff often take on multiple roles.

Many day-to-day tasks consume a lot of time, but they are not always revenue-generating, albeit essential. If you want to free yourself and your staff from routine activities to focus on core business tasks, here is a solution: to implement effective ways on how to build an outsource team.

What Exactly Is Outsourcing?

Outsourcing is a contract between two parties, the business owner and the outsourcing provider, in which the business owner assigns particular responsibilities to the service provider for a set length of time. Depending on the arrangement, the owner can either pay the provider or offer other services in exchange.

To maximize the benefits of outsourcing, many businesses outsource in areas that are not their expertise. Companies, for example, may outsource content marketing to a marketing agency. Administrative duties, bookkeeping, payroll, and web development are other responsibilities that typically get outsourced.

There are many aspects to a business, and it can be difficult for start-ups to get everything covered. Outsourcing allows your company to run efficiently without jeopardizing critical areas.

Why Should You Outsource?

Businesses outsource for a variety of reasons, the most important of which is to accelerate growth. As mentioned earlier, outsourcing allows you to concentrate on your main business operations. Here are several other good reasons why you should consider outsourcing and how it can benefit your company:

#1. Outsourcing is a cost-effective option

Hiring in-house employees to handle duties for your company can be costly. Aside from the salary, you will need to factor in overhead expenditures, office space, employment benefits, training, and other expenses.

However, if you outsource some tasks to an outsourcing provider, you will only have to pay a predetermined amount, as specified in the contract.

#2. Outsourcing is a skills-based process

Aside from being expensive, hiring experts in certain specializations can be complicated, with the screening process taking up a significant amount of time. When you employ an outsourcing company, you can leverage the skills of professionals who are trained in specific areas.

For instance, if you opt to outsource your accounting and payroll to a provider, you can have peace of mind that the accountant or finance specialist assigned will be well-versed in all aspects of payroll administration.

Moreover, you no longer have to assess their skills and background because the outsourcing agency has already taken care of this crucial step on your behalf.

#3. Outsourcing helps boost the operating speed

Most outsourcing firms focus on the cost-time relationship. They are very time-conscious and accomplish tasks fast without sacrificing work quality. Because outsourcing firms already understand time and cost balance, they can produce excellent work on time.

This is more cost-effective than assigning jobs to an in-house employee who would be paid the same whether the project is completed on time or not.

#4. Outsourcing allows for greater freedom

When you outsource some of your company’s activities, you will have more time and space to reevaluate your business processes. Outsourcing offers flexibility and versatility.

It gives you extra time to explore new ways to expand your organization, interact with clients and partners, and generally improve your products and services.

Outsourcing also frees your employees of routine tasks, allowing them to focus on what they are really good at and enjoy doing. In a collaborative environment with minimal pressure, your employees can work harmoniously to achieve goals.

#5. Outsourcing offers access to global expertise

Employees of multinational outsourcing firms have different areas of expertise. They receive training to perform various business roles well.

Furthermore, many of them are used to carrying out tasks in a globally competitive manner. Providers from certain countries often have lower rates and more flexible terms. Hence, you can enjoy better options when you consider working with offshore agencies.

#6. Outsourcing encourages business growth

As pointed out several times already, outsourcing can benefit your company immensely in terms of growth. Because you have more time on your hands, you can develop plans and increase your revenue through improved marketing and sales strategies.

Outsourcing frees up more mental space for you to develop fresh ideas and keep up with the competition. When you find a credible and reliable outsourcing partner, you can achieve all of these while maintaining quality output on technical elements of your organization, such as payroll, bookkeeping, and human resources.

Choosing a Suitable Outsourcing Service Provider

So, you’ve finally decided to outsource some of your business processes. This approach can be advantageous for your company. However, the success lies mainly in the competence of the outsourcing agency you will choose.

Weigh in all the pros and cons of each candidate you consider. Also, make sure to create a detailed list of your prospects with descriptions of their corporate background.

Furthermore, it’s crucial to select a company with collaboration frameworks that suit your organization’s needs. You need a partner, not just a service provider. Thus, it would be best to avoid collaboration models that may contradict or even complicate your workflow.

Here are several tips for selecting the best outsourcing partner for your start-up business:

#1. Establish your objectives

Outsourcing is only as effective as the expectations that are set. If you have vague, immeasurable goals, such as increasing revenue or improving customer relationships, but no precise direction is provided, you will likely not obtain the best outcomes.

Create reasonable goals and ensure that your partner thoroughly understands your objectives. Also, set a system on how you will gauge the effectiveness and success of your tactics in actual measurable data.

#2. Select a company with an established reputation

The breadth of your partner’s industry experience and track record speaks volumes about their credibility. Do some research on the kind of consumers they have served and the number of completed projects.

This knowledge will help you determine whether the provider is well-suited for you. Check for credible references, as well, and don’t be afraid to ask tough and controversial questions when necessary.

#3. Examine communication access, technology, and infrastructure

Outsourcing has come a long way, and communication and information exchange have become a lot easier thanks to technological advancements.

Check if the service provider has access to the communication channels you are using, such as instant messaging apps and project management tools. Also, in terms of technology, make sure that their office equipment is up-to-date and running well.

#4. Evaluate cultural compatibility

It is critical that your chosen outsourcing partner is familiar with your company’s culture and personality.

This includes how employees communicate with one another, the frequency with which they interact, and whether they work independently or collaboratively. Understanding all of this will make communication more direct and easier, even when there are difficulties.

Moreover, if you’re considering working with an offshore outsourcing company, make sure that they are willing to adjust working schedules to address time zone differences.

#5. Inquire about their technical and project competence

After verifying their qualifications, you must determine whether the organization has the technical knowledge and experience required to fulfill your company’s needs. Knowing the provider’s processes and the methodology they use to track results and resolve issues can give you a better picture of how your project will be handled.

The Bottomline

Choosing to outsource is a bold and wise decision for start-up businesses of any industry since it saves the company not just the huge expenses of hiring and training employees, but the overhead costs of managing an in-house staff, as well.

However, it’s crucial to be strategic and make an extra effort in selecting an outsourcing agency. Remember, the results of this work setup will rely heavily on the performance of your outsourcing partner, so look into every little factor.

The key to building good partnerships is making the right decisions. If you want to achieve your goals and reap consistent rewards, put in the effort to learn everything you can about your outsourcing service provider. The consequences of making the wrong decision can bring a lot of harm to your start-up business and hinder its growth.

Furthermore, be careful with choosing the specific tasks to outsource. While outsourcing jobs is indeed cheaper than running an in-house team, it’s still not free. Therefore, be sure that the roles you are outsourcing are time-consuming but necessary for your business to avoid wasting your resources.

Lastly, to manage a successful outsourced team, collaboration is crucial. While you do call most of the shots as the business owner, take time to assess any advice and suggestions from your outsourcing partner.

Keep in mind that they are technically more experienced in the practice than you are, so their recommendations are likely well-informed and worth considering.

About the Author!

Jamie co-founded optiBPO in 2008 and has over 25 years of experience in organisational transformation, shared services, and outsourcing. He has worked with over 100 companies in the past 5 years to offshore a range of business operations to the Philippines. Jamie has a strong track record of building high-performing outsourced teams.