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Why should Startups Outsource their Services?

We are operating in a global economy today where every successful company is reaping the benefits of outsourcing. Whether it is outsourcing IT services to an offshore destination such as India or manufacturing services to China, companies across the globe are switching to outsourcing services. The perks of well-managed outsourcing contracts and offshore development centers have proved their metrics to the world successfully. No one doubts the importance of outsourcing, but people are still unsure to switch.

When you reach a point at which the process in your company starts to become strained and achieving the right level of productivity becomes tough, then it could be that outsourcing is the way out of your scale-up challenge. Fail to scale, and you could start to lose out on the customers and the goodwill achieved so far, with products and services not meeting the expectations of your all-important customers.

Why Should Startups Outsource?

Most startups are confined to a small set-up with only the key team members and the founders. In its initial stage, the company does not want to increase its overhead, so maximum work is done by the key team themselves filling in for multiple roles. As a result, the work pressure becomes exhaustive and the working losses its tempo. This eventually leads to prolonged lead times and deterioration in the work quality. There is also a higher possibility of errors because people are trying to manage operations outside the expertise of their domain.

In addition to this, startups have limited operating capital at their disposal. So, this becomes all the more reason for them to avoid the huge capital expenses and lower their operational costs by outsourcing their services. This allows them to establish their footprints and give a stretch to their startup capital.

Benefits of Outsourcing for Startups

Running a startup is exciting but if a startup invests in outsourcing at an early level, it can reap the benefits of outsourcing to expand its business. If you burden your employees to perform tasks outside their skill set, you will end up compromising on quality, whereas if you outsource you will have professionals and subject experts to work on specific tasks. Most startups are warming to the idea of outsourcing IT and human resource processes.

The best thing about running a business in the current times is that you have the power of technology and the internet at your disposal to help you manage just about any work process for which you may need help. This ultimately saves the startups a lot of time, money and frees up the key members of the company to concentrate on growing the business, instead of jumping between roles.

Outsourcing is typically done for-

1. HR

Recruiting the right candidates can be challenging. It is obvious that choosing the top talent and perfect candidates and managing your growing teams is a considerable part of scaling up your startup. Poor management is often the cause of a startup’s failure, so if you are planning to hire an in-house team for recruitments you will have to hire a large team to perform every aspect of hiring and onboarding.

However, when you outsource the HR functions you are not only ensuring that your company can recruit the best candidates from the talent pool but that the employment benefits can be tailored to improve employee engagement and retention.

2. Data Entry and Processing

Data entry service is an easy one to outsource. This is a cumbersome process and can take up a lot of your business time whether its manual or automated. You need data entry professionals to manage, sort and analyze your data. It is only wise for a business to outsource and leverage the data available to discover the loopholes in their business, find out about the needs of customers and design a plan to meet the customer needs and earn their loyalty.

3. Bookkeeping Services

Unless your startup takes off to a flying start, you do not need to hire a full time, in-house accountant, or bookkeeping team to manage the payroll, taxes, and bank transactions. Outsourcing your bookkeeping services gives you enough time in hand to drive your startup forward as opposed to managing the in-house procedures. Thus, it is recommended to outsource your accounting and finance to professionals outside your business to get hands-on bookkeeping, accounting, and planning support.

4. Digital Marketing

Building a brand is no cakewalk. An effective digital marketing strategy is a pressing priority for any business operating online. Marketing your brand on social media, website and other digital channels incurs a lot of expense. Building a full proof marketing strategy takes time, effort, and a lot of seriousness, however, some startups do not realize this. Outsourcing your digital marketing service to creative experts offloads the burden of your head to hire professionals for each marketing service like SEO, content creation, web design and development, social media marketing and more. This will save you a lot of time and money and help you analyze your business positioning with consistent reports and results.

5. Customer Service

Customer service has evolved incredibly over the years, it is not limited to voice calls as it was once. Today, multiple channels are involved in providing customer care communication and just thinking about managing not just calls but social media, emails, messenger apps, in-app notifications and other digital channels can cause your head to spin. In fact, with the availability of so many channels, customers expect you to be reachable through all the networks, making it a mammoth task for startups to streamline their customer service. Thanks to the CRM network of the outsourcing companies that help you with multi-channel customer care services efficiently and ensure that your brand provides a five-star customer experience.


Whether you are in a budding phase or an established phase of your business, an extra pair of hands will make life easy for you. From admin and accounting to web design and HR, Shergroup can assist you in managing all these business services efficiently to ensure your outsourcing journey is a successful one. Read about our outsourcing services in detail here

Outsourcing Solutions

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Last updated | 19 July 2023

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