Startups and small businesses have various reasons for outsourcing. The reasons are mostly costs and resource availability. Reducing costs is obvious. Startups and small businesses reduce costs through outsourcing to low-cost suppliers around the world.
Startups and small businesses may not be able to do all the works on time and well. Not all startups and small businesses have all the resources readily available. Startups and small businesses should spend more time on innovation and on high-value activities. Startups and small businesses should focus on their core competences, and at the same time use third parties to fill gaps.
Besides cost reduction, outsourcing can help startups and small businesses fill gaps in resources, capabilities, capacities, and experience. Outsourcing can also help startups and small businesses scale their teams and capabilities dynamically. Outsourcing can help startups and small businesses leverage skills when required. Outsourcing can help startups and small businesses with access to expertise at any time.
One scenario is the availability of special talents for projects. Startups and small businesses usually need immediate performance in the competitive market. Startups and small businesses may not have enough and the right talents for projects that need to meet milestones. Hiring takes time and risks the qualifications of new hires. Using third parties with the right talents will help startups and small businesses in this scenario.
Another scenario is temporary talent requirements, which means the need is short-term and not permanent. In this case, hiring permanent or contracts is not reasonable. Outsourcing, in this case, is the best choice. Outsourcing can help startups and small businesses have access to the right number of the right talents at the right time.
Some talents are scarce in the job market. Startups and small businesses may not be able to hire the right talents at the time they require. Startups and small businesses then use third parties who have the right talents available for outsourced projects. Startups and small businesses can then secure the right talents for their projects.
Startups and small businesses may not have expertise in all areas. Experts can usually increase chances of a great project. Having all the experts in-house is not cost effective. Once startups and small businesses have a lack of expertise in some areas, startups and small businesses have access to the right expertise through third parties.
Startups and small businesses have plans to grow their teams. Startups and small businesses will build up the right capacities when the business and organization grow. Once immediate requirements are raised but the right talents are not readily available, startups and small businesses need to decide on building up their own teams or outsourcing. Having all kinds of talents readily available in-house may not be cost effective. Startups and small businesses should have a strategy on how to build in-house capacities and capabilities, and when to outsource.
Outsourcing provides startups and small businesses with flexible, adaptable, and effective solutions to fill gaps in capacities, capabilities, and experience. Focused on core competencies and innovation, startups and small businesses can leverage third parties to get their projects done on time and at high quality.