When handling a business, managing the startup stage is the most difficult. How a business starts can set the tone and trajectory for the early years of a company. In today’s modern business landscape, startups and small businesses often find themselves juggling numerous tasks. This can range from product development to marketing, all while making sure to manage costs effectively. This is the challenge that new businesses face.
For business owners to face this challenge head-on, outsourcing is a strategic solution for startups looking to achieve things like streamlining operations, enhancing efficiency, and focusing control on core competencies. Let’s explore the current trends in outsourcing for startups, shining a light on how this business strategy can be a boon for emerging businesses.
Quick Facts About Hiring From The Philippines
- Financial technology (fintech) is one of the most successful industries in startups today.
- Global spending on outsourcing was expected to hit $731 billion in 2023.
- 69% of U.S. entrepreneurs start their operations at home.
- The top reason why startups fail is due to financial factors. 38% run out of funds or capital.
- Strong and creative problem-solving skills are one of the top things new businesses look for in outsourced teams.
- Regaining focus on core functions is what 65% of businesses perceive as the top benefit of outsourcing.
- 37% of small businesses currently outsource at least one business process. Over 52% of those who don’t, plan on doing so in the future.
- Common business functions that startups outsource are: digital marketing (34%), development (28%), human resources (24%), and customer support (24%).
How Can Outsourcing Help Startups?
Cost Optimization by Hiring Global Talent
One of the enduring trends when outsourcing is the goal of cost optimization. As discussed above, startups are often troubled by budget constraints, so it’s important to make decisions that enable cost-effectivity. Outsourcing gives businesses access to a global talent pool, giving them an avenue to tap into specialized talent without the large price tag associated with in-house hiring.
Flexible Work Models
Startups are embracing flexibility in their work structures, specifically in round-the-clock workflows. An outsourced team allows you to collaborate with professionals in different time zones and allows you to offer your services beyond the 9-to-5 office model.
Strategic Partnerships
Instead of viewing outsourcing as just a way to cut costs, startups are increasingly viewing it as more of a strategic partnership. As they collaborate with outsourcing providers who understand their industry and business goals, they’re more likely to build long-term relationships that foster growth and innovation.
Agile Development and Rapid Scaling
The future of startups is often unpredictable and their trajectories can vary. By outsourcing, business owners allow their company to develop scalability and flexibility: increasing or decreasing resources as needed.
In Conclusion
Outsourcing has evolved beyond being a cost-cutting tool for startups. Being used by companies of all sizes and across all industries, it’s now an integral part of their strategic planning. By understanding and embracing these outsourcing trends, startups can position themselves for success in the ever-evolving marketplace.
Looking to outsource a dedicated team for your business? Whether big or small business, FGC+ can accommodate your needs. Learn more about our services at www.fgcplus.com.