23 Jul Top Reasons for Outsourcing

Business in the 21st century has been accelerated, amplified, and improved by outsourcing, though plenty of skeptics and critics remain. Of course, there are right and wrong ways to go about outsourcing, which often depends on the reasons and motivators that drive the decision.

Are you eager to outsource aspects of your business, and if not, what’s holding you back? If you need a bit more convincing, here’s what top business leaders had to say on the subject of outsourcing and why you should consider this tactic when building a company.

Regain Focus

Juggling dozens of tasks at once can spell disaster for entrepreneurs in the early stages of business development. When you have someone else handle the busy work, you can put 100% of your attention on what matters most at the moment.

“It gives you wiggle room to focus on larger projects,” said Eric Gist, Co-Founder of Awesome OS. “When smaller ones are taken care of by outsourcing, your team can focus on the bigger picture.” With so many moving parts in modern business, you’re going to need all hands on deck.

Instant Amplifiers

Today’s businesses benefit from being lean, well-oiled machines. That often means keeping a short roster of key players and outsourcing other responsibilities who people who can quickly get the job done – and done right.

“Outsourcing is a great way to save money on internal resources,” said Tyler Faux, Co-Founder of Super great.” We found that outsourcing SEO and marketing strategies help us focus on our communication strategies for our application product users and brand partners.”

Once you see the magic of an outsourced project completed professionally, you’ll understand why it’s such a popular approach.

Tap into Talent

When starting a business from scratch, resources are limited, but you want access to the top talent to propel you forward, which is what outsourcing lets you do and in record time.

“Outsourcing some of your services is a great way to save time and money,” said Jason Butcher, CEO of CoinPayments. “Outsourcing allows you to do more with less. You can find great talent outside of your company by outsourcing. We have found great success outsourcing our marketing team.”

Your goal should be to add and retain talented employees to your roster in time, but outsourcing can fill gaps quickly in the meantime.

Clear Competitive Edge

It’s becoming increasingly hard to argue against outsourcing, especially now that so many businesses have benefited in obvious ways. The more you understand the concept, the more apparent it becomes – outsourcing works.

“Companies are past the basics of talking about outsourcing and offshoring,” said Jagdish Dalal, CEO of Corporate Affairs at Arvind Limited. “Executives understand outsourcing now and want to know how to use it in their organizations effectively.”

Remember, you don’t have to go all-in on outsourcing. Be selective and use only what you need to maximize its impact.

Boots on the Ground

Time is of the essence in all aspects of modern business, and you may not have time to cultivate teams by traditional hiring and recruitment methods. Expand your roster quickly by bringing on proven professionals.

“Outsourcing is great when you don’t have enough team members to tackle all of the projects,” said Bari Medgaus, COO of Stabili-Teeth. “It helps keep projects running on time and also gives you the chance to meet/work with many different people.”

Once you begin to establish a more permanent staff, you won’t have to rely heavily on outsourcing, and you’ll have regained total control over projects and processes.

Expert Advice

It can sometimes feel like the blind leading the blind when starting your first business, and some input from experts can go a long way. Bring on a consultant to point you in the right direction and save yourself a ton of hassle.

“Outsourcing is an effective way to save money on internal resources,” said Randi Shinder, CEO of SBLA. “Firms in public relations, or even a media consultant, have expertise in your industry that is valuable for your company’s external communication strategy. They can see through what the media conversation would be and how you can properly tailor your message, and your internal resources can learn from those messaging choices.”

No matter what you’re struggling with at the moment whether it’s restructuring your team or attempting to reduce operating cost, there’s a way to outsource and improve that area of your business, guaranteed.

Overall Improvement

Even if you’ve got a team of certified superstars, they can only do so much daily. When you outsource and reduce that burden on your core staff, you’ll see upticks in productivity and other key metrics.

“Outsourcing can drastically improve your overall business quality,” said Jing Gao, CEO of Fly By Jing. “When you are a new startup, you likely will have a small team dedicated to several tasks. When you choose to outsource, you’re taking some responsibility and pressure off of your existing employees, guaranteeing to improve the quality of care your consumers are getting.”

Outsourcing makes work and life way less stressful for you and employees, making it immediately worthwhile in the startup world.

Tech Alliances

We tend to imagine that accounting and other administrative needs are the only things worth outsourcing. Still, these days, you can hire out a wide range of tasks to veritable professionals and knowledge workers.

“Since our company is founded on innovative science and technology, we need to conduct our research and case studies,” said Shaun Price, Head of Acquisitions at MitoQ. “We also partner with institutions who lead their studies, which we need to prove our methodology. Outsourcing research is an important part of providing transparency and honesty in our product for our consumers.”

So, be extra cautious when outsourcing complex jobs like research and tech, and be sure to stay in close communication throughout all projects.

Strong Partnerships

The term outsourcing is rather impersonal and often doesn’t describe the story in full. Instead, view these connections as partnerships that help your business improve and grow in every way.

“Challenges create opportunities,” said Michael Corbett, Chairman of the IAOP. “Outsourcing service providers are very aggressively examining their products and services to create greater value and increase market share in these times. Companies are recognizing they need to use this as an opportunity to strengthen relationships with their partners because each one of those partners will make them a better company.”

No business can fly completely solo – outsourcing is just one form of essential partnership you’ll need to succeed at any stage.

Early Advantage

For a business just starting, every single penny counts. Rather than play the trial-and-error game with internal staff, allocate those resources to professionals who never miss.

“Outsourcing can end up being an all-around cost saver for your business,” said Kaz Amor, Founder of VoCe Haircare. “Though outsourcing may seem like a risky investment when funds are low in the early stages of business, it tends to pay off in the long run. It can save on costs of hiring, training a new team, and buying new resources to perform these new tasks.”

By getting ahead of the competition early on, you’ll be positioned for success and avoid common pitfalls that hold others back.

Superior Service

A business must have a pristine reputation for customer service from square one in the internet age. If your in-house team can’t handle the heat from the outset, be ready to bring in some extra support.

“With the massive increase in online shopping comes a demand for improved customer service and satisfaction,” said Shahzil Amin, Managing Partner at Karlani Capital, Founder of Emagineer and Well Before. “Outsourcing that service enables a company to hire workers from different time zones to provide 24-hour support across the globe. Round-the-clock support combined from service agents reaching across multiple channels allows for faster, efficient response times and more proactive support. The results are improved customer satisfaction, increased trust, and stronger brand loyalty.”

You’ll never regret an investment in customer experience, even if you outsource a team for a few months as you gain momentum.

Find Life Balance

The idea of work-life balance can be foreign to aspiring entrepreneurs, and sometimes, you might need a break. Outsource strategically to release some pressure and regain your footing when needed.

“When you’re trying to make a living by doing what you love, handling every aspect of business can be time-consuming and overwhelming,” said Joshua Tatum, Co-Founder of Canvas Cultures. “For artists, outsourcing aspects of the day-to-day like manufacturing and customer service means they can spend less time worrying about the cost and the risk of running a business and spend more time focused on creating art.”

With innovative outsourcing practices, work-life balance may be more attainable than you think.

Cost Choppers

For many direct-to-consumer brands, outsourced manufacturing and customer service make pure financial sense. If you can drastically boost margins and bring in more profit, what’s stopping you?

“A top reason for outsourcing is to cut down costs,” said Craig Carter, CEO of Jack Mason. “Outsourcing can save your business time and money by utilizing specialists outside the company to perform the given tasks. We outsource our manufacturing, and it is incredibly efficient.”

Just ask any successful D2C brand about the importance of outsourcing, and they’ll have plenty of positive testimonials to share.

Masters of Marketing

When a business first hits the ground running, it needs strong marketing fundamentals to break through the noise and static of the internet. Outsourcing these projects can be a massive advantage for new brands.

“The best way to grow your business is to be extremely smart and selective about your investments within the first year,” said Chris Vaughn, CEO of Saucey. “Putting those funds towards a great marketing team can go a long way towards the long-term success of your company. Outsourcing will bring in new ideas and insights from professionals that can be very valuable to your business. They will help come up with unique marketing ideas that’ll put your company on the map.”

Even if you don’t need a total marketing overhaul, some selective outsourcing can dramatically help your cause.

Don’t Sweat It

Rather than trying to accomplish everything independently, intelligent entrepreneurs will use outsourcing to their advantage and clear the cobwebs, creating a stronger, more focused frame of mind to achieve great things.

“Outsourcing can give you peace of mind,” said Lauren Picasso, CEO of Cure Hydration. “No longer do you have to manage your processes, but rather you outsource them and let someone else do them, which can be incredibly freeing and give you a lot of peace of mind.”

We all know the feeling of relief from getting help on projects, especially if you can count on the person and trust them to do good work.

Tax Day

If there’s an opportunity to save on taxes, you better believe the competition is all over it. It’s your responsibility as a business owner to do the same, so use every advantage you’ve got.

“Outsourcing can be a great way to receive tax breaks,” said Chris Gadek, CEO of AdQuick. “You can avoid paying high taxes by performing the work internally and outsource it instead, which can drastically reduce your taxes.”

Always talk to lawyers and accountants before making moves, of course, and don’t outsource operations only for tax reasons.

Resource Management

There’s nothing wrong with outsourcing to unlock a few extra hours in a week or manage your energy more effectively. After all, these are the most valuable resources of all.

“Outsourcing saves you time and energy,” said Jason Wong, CEO of Doe Lashes. “You as the manager and leader can hand off projects that were not able to be done promptly and keep goals on track.”

If you feel like there are never enough hours in the day, try outsourcing to earn some of that time back and take control.

Brass Tacks

There are often too many distractions that keep business owners from hitting their goals each day. Peripheral and administrative needs can be handled via outsourcing, allowing you and your team to progress where it matters most.

“Outsourcing can allow you to focus on your core business,” said Peter Horvath, CEO of High Times. “Wasting resources on things outside of your core business can be a waste of time and money. Outsourcing these things and focusing on your core business will streamline your company.”

You can always build in-house teams down the road if you choose, but outsourcing will serve you well when growing a business.

Risk Reduction

Starting a business is inherently risky, but outsourcing can help you to reduce some of those risks from the jump. Analyze your company from every angle and see where you can benefit from some assistance and fortification.

“A great reason to outsource is that there is less risk,” said William Schumacher, CEO of Uprising Food. “When you decide you want to expand your business and further your reach, there can be a risk in building your team. It involves hiring new employees and setting up new training materials. It can be time-consuming and end up being scrapped if you find it’s too much for your business to take on. Outsourcing can minimize the hassle of this. Paying an experienced, knowledgeable team of experts to conduct this aspect of your business is way less risky for new startups.”

Remember that risks shift and change over time, so re-analyze every so often to avoid pitfalls.

Record Time

There is no time to waste when getting a business off the ground, and outsourcing is like getting a massive gust of wind at your back.

“Today’s business climate is so fast-paced that speed is invaluable when getting your company off the ground,” said Darren Litt, Chairman, and Co-Founder at MarketerHire. “You can compress your timelines and achieve major goals in far less time with outsourcing. Just make sure you aren’t compromising on quality or lose the core identity of your business.”

Return on investment isn’t always strictly cash-based – speed is crucial as well.

Decentralized Enterprise

There are countless examples of decentralization helping businesses thrive and resist disruption. You don’t want to be the company with a rigid structure and the inability to pivot at critical moments. Outsourcing solves this and grants you agility, no matter where you’re at.

“When you outsource, you are creating jobs for freelancers and helping the economy,” said Kiran Gollakota, Co-Founder of Waltham Clinic. “It also helps you to save money and time on a hiring process. Outsourcing is fantastic for any business size, especially for smaller businesses who are unable to afford a large team.”

Outsourcing may have some controversial implications, but it can be a massive help to a growing business or even an established company when done correctly. Consider all the angles and weigh your risks – these are significant decisions. Play your cards right, and outsourcing might be a keystone to your success in the years to come.