For any small startup company, there are two main limits on what you can do: time and money. The budget can be tight and feel quite stretched, especially as things are starting out. Time can run away too,with a never-ending list of things on your to-do list. One thing that you can think about doing, as a way to save yourself time, as well as saving money from having to employ full-time employees, is to outsource. But what is it and how can it help a small startup?
- What is outsourcing?
To sum it up, outsourcing is the practice of hiring an outside person or company to perform a specific job or task. These things could be done in-house, but to do so could mean hiring someone new with the skills and expertise, leading to a lot of other costs. That is why outsourcing is done by many as a way to keep costs low and stick to budgets, because you only pay the person or the company for the task or job that they are assigned to do. Outsourcing is also something that a range of companies can make use of, from a traditional office-based business, to manufacturing, warehousing, and online businesses.
- What is a managed service provider?
One aspect of outsourcing could be to hire a single graphic and web designer to create your logo and website. You pay them for that and then the job is done. However, you can outsource to a company or provider for something that is ongoing, much like a managed service provider. If you want to know more specifics about MSPs, then you could read a web log about what is a managed service provider. In short, they are a company who are paid to offer third-party services or support through IT and computer tech, that can help a startup's network, online security, and their infrastructure. As this is something that is ongoing, it differs slightly from outsourcing, but all in all, can save you money compared to hiring someone outright.
- Main benefits
As has been described, one of the main benefits to choose to outsource is to cut costs. You are reducing the company’s labor costs by outsourcing, as you don’t have to pay a permanent salary or consider other employee costs like holiday pay, sick pay, training, or the costs of extra equipment. This is why it is such a popular choice, especially with startups.
Another main benefit to outsourcing is that it can help a company to focus on the main aspects of the business, rather than the director getting involved with smaller and less critical aspects of the business, for example. Some time does need to be taken when deciding who to choose to outsource too, as there will be sharing of some sensitive information, and if it is a task related to IT or websites, security could be an issue. That is why recommendations are paramount, as well as seeing examples of previous work or previous clients, to check and get references where relevant.