New companies are popping up every day, but as most entrepreneurs know, starting a business comes with a couple of risks. Most startups operate with high costs, limited revenue, and a high risk of failure. This is usually why many startups turn to outsourcing. It’s a great way to help stabilize your new business by reducing operational costs and increasing efficiency. Let’s look at what outsourcing is and whether it can meaningfully impact your new business venture.

Outsourcing for Startups | Woman with post-its on wall

What is Outsourcing?

Outsourcing is the process of delegating key business functions to a team outside of your company. Some companies outsource within their city, while others opt for offshore outsourcing in countries with lower labor and living costs. The way it works is an outsourcing provider connects you with a specialized team of experts for the type of service you need, including accounting, technical support, customer support, and data management.

To put it simply, you can receive the same (or better) outcomes for a fraction of the cost. This is even more important for a startup company as it may take a while for the revenue stream to flow consistently.

The Benefits Outsourcing Provides for Startup Companies

Now, it’s understandable if you think onboarding a large team from halfway across the world for a startup might strain your already limited resources and funds. However, successful companies such as Slack, Skype, Alibaba, and AppSumo all utilized outsourcing during their early stages. Startup outsourcing could be just what you need to grow your business and improve your bottom line.

Let’s look into the potential benefits of outsourcing for startups! 

Cost Savings

One of the most significant benefits of startup outsourcing is cost savings. After the fixed fee you pay to your outsourcing provider, you no longer have to worry about labor, equipment, and infrastructure costs.  

Focus on Core Competencies

It’s expected for a startup to have a smaller headcount compared to industry giants. However, piling on tasks to an already stretched-thin team can cause unnecessary friction during an already turbulent time. By outsourcing non-core tasks, startups can free up valuable time, resources, and personnel to focus on activities that directly contribute to their competitive advantage and business growth.  

Access to Expertise

Another potential benefit of outsourcing for startups is access to a team of industry experts. Startups often operate with limited resources, and it takes a while to build an in-house team of experts. Outsourcing becomes advantageous at this stage as you can rest assured that professionals with the necessary skills and experience are handling key tasks. 

Increased Efficiency

Finding, vetting, hiring, and training skilled candidates for your in-house team can take up valuable time, especially for a startup. Most outsourced teams can start immediately and they already have efficient management systems in place to allow for quicker turnaround time. 

Flexibility and Scalability

Once a startup survives its early stages, it often experiences rapid growth and changes in its business needs. The beauty of startup outsourcing is you can scale operations up or down swiftly depending on market fluctuations or seasonal demands without the constraints of managing an in-house team 

What to Look for in an Outsourcing Provider

When deciding on an outsourcing provider for your startup company, there are a couple of indicators that can suggest you’ve found the right fit. Here are a few examples:

Work Quality. A great outsourcing provider should have a remarkable track record that references, case studies, and work samples can back up.

Competitive Cost and Value. It’s important to weigh the quality of the service, the skillset of the employees, and how they compare to other vendors.

Cultural Fit and Compatibility. Look for an outsourcing business whose values, work culture, and communication styles align with yours.

FGC+ will guide you from end-to-end of the outsourcing process to ensure your team will ignite growth in your startup business. Learn more about us at