Processes Every Growing Start-up Should Consider Outsourcing


outsourcing for startups

“Good idea, bad implementation” is perhaps the phrase that explains why 90% of start-ups fail. 24% of the failed start-ups reasoned “running out of money” while 18% of them labeled “not enough traction” as the reason for their failure.

Business Process Outsourcing: Many Problems One Solution

Outsourcing started in the 1760s, when businesses wanted to improve their productivity hence they offshored their processes to organizations with assembly line capabilities. Today in 2020, outsourcing has evolved but it serves the same purpose—taking things off your plate. Business process outsourcing helps businesses gain the requisite traction by letting them focus on core processes and also reduces cost. By assisting with momentum and resource management, outsourcing takes away the two most critical challenges a contemporary start-up faces.

Clutch study found one-third of businesses outsource processes. 24% of businesses outsource processes for improved efficiency while 18% outsource to receive assistance from subject matter experts.

survey by Economist reveals “90% of businesses believe outsourcing is crucial to their growth”. Start-ups no matter whether running from garages or co-working spaces can take a cue from small-businesses and use outsourcing as a tool.

Why do start-ups need to look at Outsourcing as a Viable Option?

  • Since 28% of start-ups fail because they run off funds, outsourcing can help them run important or at least repetitive processes at an affordable price.


  • Lack of subject matter expertise has led to the closing of 18% of start-ups. Outsourcing helps start-ups hire SMEs who leverage state-of-the-art technology to scale and run processes.


  • When repetitive processes are outsourced, executives are left with time to focus on core processes. 7% of start-ups that failed due to lack of focus could have used the external help.


  • Almost 14% of start-ups were shut due to bad timing or lack of market research. Outsourcing services like market research and lead generation can help start-ups steer their boat in the right direction.

Also Read: Business Process Outsourcing for Organizations – Functions That Can Benefit

Outsourcing for Start-ups: What all Functions can benefit?

Lead Generation

Planning and building a start-up from scratch takes more than an idea and a team of coders. Business planning, revenue model, building advanced tech and then pivoting. With so much to handle, creating a list of warm targets should be the last thing on one’s mind.

Outsourcing experts have created offerings like “tailored outsourcing”, where they leverage qualitative technology to help businesses acquire customized solutions. Investing in tailored outsourcing services help a business pay only for the services they need. Such nuanced offerings save time, improves efficiency, and reduces cost and positively impact business growth.

Bookings and Reservations

Founders of nascent businesses need to travel often for marketing and entrepreneurial events. Business plan contests and investment fairs offer entrepreneurs with an opportunity to win further rounds of funding, which can help them scale their start-ups.

With such a busy schedule and a team working on product improvement, managing a calendar full of invites can get tricky and lead to major faux pas. Also juggling between multiple sales and marketing events as the founder of a start-up is not recommended. Letting industry experts represent you and handle your bookings is the right way to about it.

Certain BPOs have cast themselves as one-stop-shop for all reservation needs. By leveraging the expertise of such BPOs, start-ups can save heavily on bookings as well as discover new avenues of exposure.

Must Read: Expert’s View: Biggest Challenge Faced by Today’s Contact Center Leader

Catalog Management

Today technology is the base of all start-ups, be it an e-commerce marketplace or a compression platform, all of them need catalog management services to help customers understand the product better. Catalog management services double as a customer experience enhancement practice. When the catalog is created by experts and ran through multiple checks, all silos leading to an altercated experience are removed leaving customers with access to a memorable experience.

Common services that are clubbed together in catalog management are:

  • Content Writing
  • Content Moderation
  • Catalog Creation
  • Catalog Quality Check
  • Catalog Enrichment
  • Imaging Services 

Some of the additional benefits of outsourcing catalog management comprise of:

  • Optimizing content or online catalog to suit the Intent of the customer
  • Leveraging the power of analytics to improve the content that impacts customer experience
  • Offering relevant recommendation based on festival or holiday season

 Customer Service

While the revolutionary product has helped start-ups rise through the ladder of success but it is the incomparable customer service that has helped them stand apart. Often revolutionary products or services are tough to decipher, with quality customer support, start-ups can educate customers and help them traverse through the product smoothly.

Investing in customer service pays high dividends because 86% of customers have agreed to pay more for a quality experience. Nevertheless, start-ups cannot ignore customer service because 50% of companies are now willing to diver their marketing funds towards customer experience innovations.

Also Read: 10 Reasons That Explain Why Investing in Contact Center is Good for Start-Ups

Accounting and Reporting

Accounting and managing reports are perhaps the few personal attributes of a business but in contemporary times, where dashboards, reminders and electronic checklists are mainstream, it makes sense to have an expert looking over it.

Outsourcing accounting and to-do lists will not only bring in a sense of urgency, add efficiency but will also remove data silos and expose shortcomings. The unique combination of the latest technology and professional expertise can help start-ups manage limit resources extremely well.

With an expert looking over the most important metrics, key performance indicators and varied touch-points, founders can save themselves from the struggle and focus on the hustle.

Hiring & Training

The last thing founders of growing start-ups should concern themselves with are hiring and training. Multiple start-ups are anchoring fresh graduates towards a stable career. By outsourcing hiring and training processes, entrepreneurs are helping their businesses find the right resource without actually looking for one.

Letting professional trainers and talent acquisition executives find the right match for your company is perhaps the most cost-effective way of hiring. As mentioned, through tailored outsourcing, businesses are training freshers in a particular skill and are making it available to businesses of all scale and sizes.

 Back Office Processes

 Fintech Start-ups, Cab aggregators and even E-commerce marketplaces have launched their Money wallet. To run this money wallet and offer easy payment processing, the service provider needs to conduct Know Your Customer compliance. The KYC compliance requires businesses to furnish details of customers who are using payment wallets.

Identity card, PAN card and the latest photograph the most commonly requested details. Collecting, verifying and processing these data for millions of customers is hectic, repetitive and time-consuming. By outsourcing KYC verification, start-ups in Fintech, E-commerce or Aggregation industry can look forward to using the available time for improving their services or product.

Cyber Security Management

 GDPR, CCPA, HIPPA, PCI DSS and ISO are few compliances that are necessary for businesses to function in an environment that is ridden with multiple cyber-threats. Today cybersecurity management is perhaps the most important part of running an online business because the average cost of cyber-attack is now $4 million.

Outsourcing cybersecurity management to enterprises that have an established reputation in the field of consulting and training can benefit start-ups immensely. These organizations have built an affordable solution named managed security services that relies on security operation centers to offer robust protection against potential threats.

Common benefits Managed security services include:

  • Robust cybersecurity at an affordable price
  • Protection against all the latest threats
  • Saves the cost of building and managing an in-house cybersecurity team

 Market Research & Competitive Intelligence

 14% of start-ups succumbed to death because they lacked proper market research. Well, refining an idea and conducting market research are two different things. While founders should work on improving their idea or product, industry experts should be hired to carry out market research.

When industry leaders are allowed to conduct market research. They weigh in the varied metrics, KPIs and nuances of the industry and form opinions. Everything mentioned in the final report is backed by data, facts, and instances from the past, which simplifies business development. Founders can ride on the benefits of thorough market research to push their competitors out of business.


The changing face of business today requires expertise that resonates with the demands of the customer and the entrepreneurial ecosystem. With experts, state-of-the-art technology and tailored support, start-ups are looking at an easy path to success.

In the recent past, unicorn startups have lost deposits and ceased to exist but today, some professionals and organizations are willing to innovate, customize and offer these businesses with every support required to be successful. Now is perhaps the best time to upstart and create a million-dollar business.


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