You’ve got the service, the right people, and the funding you need to make it in a saturated market. But how can you pull the company through milestone after milestone? Guiding a startup to success isn’t a breeze, but that doesn’t mean it has to be overtly difficult, not even in the face of discouraging statistics that state three out of four startups will likely fail.
Many SaaS startups rely on outsourcing to pull through. It’s a common business practice that has helped numerous companies grow into maturity and establish themselves as frontrunners in their industries. If you haven’t already considered it, read on to find out more about outsourcing.
The basics of outsourcing
In this kind of business arrangement, a company entrusts certain business processes to a third party. These processes vary from simple back-office tasks to complex ones that require specialization. Accounting, payroll, customer support, IT, and content development are some of the most commonly outsources processes.
Pricing models vary, and some are more flexible than others. There are providers that will offer free trials, while other offer service bundles at discounted rates. You also have the option to pay for individual services.
You can get several service providers to bid on your project, forcing them to offer you their most competitive rates and service packages. You can also rely on referrals from trusted colleagues and professional contacts who have had success with outsourcing.
Once you decide on a provider, you’ll have to set service level agreements, or SLAs, with them. The SLAs will ensure that you and the provider see eye-to-eye on expectations and protocol, among other things. This document can be reviewed and modified as your business requirements change.
The benefits of outsourcing
The biggest benefit of outsourcing is cost reduction. Cost savings are critical for startups that rely on limited capital and a customer base that has yet to grow. Not only does it expand profit margins for young companies, it also helps them maximize and better allocate their resources.
Startups often have small teams. If you want to keep your in-house team small but need an extra hand in your day-to-day operations, outsourcing is a viable solution.
A tech support call center, for instance, can provide tech services to your clients as your team focuses on high-level decision making and other key activities.
Which leads to another benefit: the time and energy to do what you enjoy doing best. With a dependable service provider on your side, you and the team can concentrate on your core competencies. This also makes it possible for you to give your in-house staff meaningful and more demanding tasks that they’ll appreciate.
It also gives you access to skill and talent that you may not be able to find within your professional network. Missing an IT expert or telemarketer? You can easily locate that talent in any of the offshore service providers in the Philippines, and at a reasonable rate.
Is outsourcing for you? Don’t be a statistic for failed SaaS startups. Reach your next milestone with the help of an outsourcing company.
We can help you in your specific business needs. Talk to us today.