Every day, there are thousands of start-up companies sprouting up worldwide but only a fraction of them are lucky enough to stay in their industry. Some lack a validated market demand, some do not have a competitive business model, and some are assembling the wrong team which all lead to a waste of time and money. But, one of the major obstacles start-ups face is having ineffective talent acquisition processes that may cause internal issues in the long run. So, what is outsourcing and how does it help companies?

While some say that outsourcing is only for large corporations and companies, that is actually incorrect. Acquiring employees with different expertise through outsourcing will be highly beneficial to a start-up business where everything is still at the establishing phase. However, it is important to understand how outsourcing solutions work to ensure your success.

What is outsourcing and why should you try it?

Even if you have the best idea and plan for your business, realizing it wouldn’t be possible without any help from your skilled employees. Launching a product is not only about utilizing and improving your offer, you should also have employees who are experts in marketing, branding, human resources, technology, and art to make your company successful.

However, if you don’t have enough budget and only rely on your personal savings to start your business, chances are you can only afford a few employees.

In this case, it is ideal to find outsourcing solutions across business areas and this is made possible with several organizations and online hiring websites available. According to Cogneesol, about 82% of companies that used outsourcing say that it improves their overall management. This proves the benefits that businesses can get by hiring outsourced employees.

 In addition, there are other benefits from implementing a remote work setup start-ups can get. Outsourcing can offer companies a larger pool of talents without geographical boundaries and may even help cut costs. If you are residing in the U.S. or Australia and you hire remote workers from Asia, you can save up to more than half of your usual local manpower costs while maintaining the same quality of services. 

What to outsource

Before you outsource your business functions, it is important to understand and carefully plan how your start-up operates and what needs to be done. You should also determine the back and front office functions and processes of your company to know which tasks are best to outsource. For example, if you are in the SAAS industry, complex and confidential software designing tasks should be delegated to trusted employees who are bound within a contract. This makes secure hiring processes very important for hiring outsourced employees. Meanwhile, other tasks that are not in the nature of business like payroll services and accounting are also ideal to outsource.

There are three general categories of tasks that companies should look into when considering to outsource. Understanding them would be beneficial to choose the right business functions that you could outsource without having to compromise the quality of your services and the credibility of your business.

Here are the three categories of outsourced positions:

Highly skilled, or executive, expertise

Hiring executive-level candidates as your in-house employee would mean that you need to pay a higher salary for them. This is why most start-ups prefer to outsource most of their CFO-level tasks in other countries with lower costs of living than theirs. This way, they can save more without worrying about the expertise and skills of their employees. 

Specialized knowledge

For every business, there are a lot of aspects that you need to work on to make everything perfect, more critically so for start-ups. However, if you need specialized knowledge like IT support and legal assistance, it would be best to outsource an in-house employee. This is more affordable and more convenient to work with.

Highly repetitive tasks

Highly repetitive tasks are not only tedious but can also be time-consuming. This makes tasks such as data entry accounts payable and shipping inventory ideal for outsourcing. If you hire remote workers from Asian countries like the Philippines, more than having a detail-oriented team to look after data/accounts, you can have a dedicated team at a much lower rate than your usual local hiring costs.

How to outsource through EOR

When planning to outsource, finding the ideal way to source and connect with highly skilled talents is important. While it is tempting to just hire workers through a BPO or freelance site, there is actually a more convenient and effective outsourcing solution: Employer of Record (EOR).

You can learn more about the pros and cons of outsourcing through BPO and EOR in this article.

According to Wasp Barcode Technologies, the five biggest challenges that small businesses face are related to employee management and profit. The problem is, with BPO and freelancers, it will not be easy to lead and manage your outsourced employees. BPO  companies follow their own management and freelancers are, well, not really your employees. They can easily drop your projects anytime unless otherwise is stated by your contract.

As a solution, most companies choose to outsource through an employer of record(EOR) company like Remotify. We serve as the local employer of your outsourced employees which makes legal compliance much easier. We can also handle the entire outsourcing process from the sourcing, hiring,  up to monthly payroll management but will let you handle the day-to-day tasks of your employees.

Moreover, we offer ongoing support for clients in areas such as team engagement to assess the performance of the outsourced employees and make improvements easier.  We also have optional services such as conducting background checks for new or existing employees, GDPR and cybersecurity training, HMO and other benefits, and laptop procurement.

With us, managing and instilling your company culture to your employees as a start-up is much easier. You will also have more time for other business functions that you need to focus on.

Ideal for Start-ups

Outsourcing talents from other countries is ideal for start-ups who are tight on budget but need a high level of talent. This will let you build a highly skilled team without the expense of hiring local in-house employees. There are also a variety of business functions that you can hire remote workers for.

Moreover, you can make the most of advanced outsourcing solutions such as EOR companies that can help you with sourcing, HR tasks, payroll management, legal compliance, team engagement. With a proper business plan, enough dedication, and strong teamwork, your start-up will surely be a success in no time.

If you want to know more about how we can help you outsource talents for your start-up, you can check out Our Services.