8 Profound Examples of How Business Process Outsourcing Services Helping Startups

Often new businesses do not have sufficient budget to hire and pay full-time developers. Outsourcing development work can help startups save financial resources while maintaining quality. It does not imply that they cannot reach skilled programmers. Some of today’s best-known business started with outsourced developers.

Hiring full-time programmers may cost you no less than $60,000 every year.

Here is what Michael Soloman, CEO of 10x management has to tell us, “Even the companies that have the money often spend four to eight months finding the right talent and if they don’t use freelancers as a stopgap, they burn through their capital without building their product. This is frowned on by investors and not good for business. By comparison, it makes even the highest level freelancers a great deal.”

The trend of business process outsourcing services is picking the traction. Large companies have increased their expenses on outsourcing from 6.3% to 8.7%, small from 6.7% to 7.8% and midsize companies, from 4.7% to 6.5%. Business Process Outsourcing Services are getting more and more desirable every day, because of tech talent shortage. A number of problems ranging from heavy expenses to challenge of finding the needed specialists.

Here are a few examples of businesses that outsourced development in their initial days.

1. GitHub

We all know Scott Chacon as the CIO of GitHub. A lesser-known fact is that he originally met the GitHub CEO and co-founder Chris Wanstrath at a Ruby meetup in San Francisco.

Realizing he had an understanding of Gits, the rare thing at the time, the founders asked him if he is willing to work as a consultant on an outsourced basis. Chacon went on to write the backend of Gist, which actually is a sharing feature inside GitHub. The company might not have nailed Git without him.

2. AppSumo

AppSumo is the enterprise that started with only $50 and is proud of that. The founder and chief of the company tell they were asking successful entrepreneurs for favors and landing some of early ad placements, as a result. They also found a developer who was ready to work for $50. His work was to make a PayPal button and credit card form.

What helped him convince his developer to provide the code he needed was a solid concept already in place, he believes.  Today they are partners with hottest tech companies like Evernote, MailChimp, and Depositphotos. 

3. Fab.com

Fab is a successful e-commerce company with a billion-dollar valuation, more than 15 million members. They process nearly over $250 million in online transactions. They do all of this without a single engineer in New York City Headquarters.

The founder Jason Goldberg used a software development firm in India to build his e-commerce business. He observed that the site’s needs were more robust, over time. After much thought, he purchased the Indian firm. The company made remarkable progress, over the years through outsourcing efforts. Success would have not been possible, were it not for Goldberg’s skill of managing the outsourcing process.

Click here to find out why Fab.com, a US-based company never hires any US-based engineer.

4. Groove

Alex Turnbull, CEO of Groove wanted to find a co-founder with a technology background. The issue was that the background of his product was not good enough to manage the development part of building a software-as-a-service company. Unfortunately, he could not find one. Eventually he decided to outsource the technical aspects of growing his business to a firm.

In the midst of this venture, he realized another thing. He could retain 100% ownership of his company while saving the money he would spend on full-time workers, by getting business process outsourcing services.

5. Slack

In the early stages, Slack hired a design firm to refine its product. They wanted the firm to help them transform their beta version to successful one.

Canada based firm MetaLab worked hard on the company’s website and app. They redesigned the logo. Slack raised $250 million investment for a total valuation of $5 billion in July 2017. Within two weeks of launching a final version (designed by MetaLab), they got 15,000 users. A number of users reached up to 8 million by May 2018. Large companies like IBM, BBC, and oracle are also utilizing Slack in their daily activity.

MetaLab created most of what consumers see today when they interact with messaging service. They have designed numerous successful products over the years, as well. Different businesses of all industries contact them in the hope of having success like Slack. For sure, it is not just the success of Slack.

Started in 2013, Slack is an American cloud-based collaboration tool. This is one of the most famous tools owing to its success to business process outsourcing services. 

6. Upwork

Everyone knows about UpWork, one of the most popular traditional freelancing websites. Crowdsourced work is what they specialize in. It must not come with surprise that company was built using a team largely made up of contractors. 

Upwork itself is actually the merge of two largest freelancing platforms, ODesk and Elance.

7. SeatGeek

Jack Groetzinger, the founder of SeatGeek firmly believes in early stages of outsourcing. Sharing his passion with other startups, he describes how he uses contractors to get everything done. Be it collecting ticket price data for various areas or something technical like software development. He maintains that cost of contractor in a developing country can be as low as $1 an hour for quality work. He uses contractors all around the globe, along with his small staff to get work done.

8. Alibaba

Alibaba, the global marketplace needs no introduction. Yet few people know about the inside story of Jack Ma and the Creation of the World’s Biggest Online Marketplace. Initially, company outsourced its development to a certain U.S based firm. Overseas development talent was still in short supply. US had the skills Alibaba needed to compete with giants like eBay and did it all behind the Chinese internet restrictions.

Affordable talent is what every startup needs. Outsourcing development is the ultimate solution. The right approach always leads to success.

What Makes Business Process Outsourcing Services Best Option for Startups?

Startups have to go through a long-struggling phase in today’s’ competitive market. These are the times when your center of attention should not deviate from core business at any cost. The startup phase is very crucial.

Founder can’t take care of everything.  A plethora of things related to core business seeks this desperate attention within strict time constraint. In early stages of business, the limitations on funds, staff, and stress of the business expansion go over the head of the founder. You may have tremendous knowledge and remarkable skill set, but as a human being you must have limited potential for multitasking. It is better to outsource before you get horribly stressed by workload and plan suicide. Plan alternatives before reaching dangerous threshold.

These are the reasons why most of the startups outsource their work to the freelancers or other organizations.

Hiring full-time in-house employees to carry out the work will be too costly for you.  It requires your investment in terms of both money and resources. In some cases, you will also be bound to paying additional benefits. Never confuse between the in-house or outsource because if you are on a budget with tight situations, no other solution is better than availing business process outsourcing services to get your work done.

You can easily find talented outsourcing employees or organizations who will be more than happy to share your workload. The payment for them will be less because you will be paying them for the exact work that they did and not even a penny extra.  Thanks to outsourcing they are not liable for any benefits, you will be saving a good amount there too!

You must possess the eye to recognize which tasks or projects should be outsourced. Figure out the things that need your most attention, do not divert yourself from such tasks. Saying that startup is a one-man show is a terrible mistake. You must outsource some of the trivial tasks so that you can take care of the important ones. This is how things work out in business environment.

Statistics have proven that it is better for startups to look for the best business process outsourcing services and outsource all the things other than core business. Estimates say that 90% of the startups step out of the business within the first year. It happens when the founder of the startup doesn’t clearly understand the management of the business and takes everything on him. Maybe you can manage each and every department, maybe you can take care of every work, but you can never ever do every work. It is critically important for you to outsource one or the other task so that you can spend a good amount of time in doing what you are best at.

According to Peter Drucker “Do what you do best and outsource the rest.” It will reduce many workloads and you will be able to concentrate on certain tasks only and produce quality work.

If you are a novice in the business market then you should search for the best outsourcing company for your mobile app development or enterprise app development related requirement.

Unfortunately, new owner business owners do not realize how promising results outsourcing gives. Customer value will increase once your business grows and that would undermine in-house staff abilities. Those will just not be enough to keep the flow of business in the fast-paced environment of 2019. Necessary actions are compulsory in order to avoid labor shortfalls. Many efforts can be saved by outsourcing some of the smaller and less important tasks to the freelancers or some other companies. Your in-house staff would get the ultimate calmness and peace of mind, which is required to focus on the creative process.

Little care while selecting a vendor for outsourcing development is obligatory. Otherwise, it is impossible to get the best output when you outsource things. Commonly CEOs long for great control and authority over the business operations. However, it is nearly impossible to take care of everything in the starting stage of the business. You should at least hire someone from the third-party companies to look after the work if you are unable to hire in-house staff. You will be amazed by how you can reap more benefits from the freelancers and the third-party companies, as the organizations work.

What to Do After Making Outsourcing Mind?

Once you are done with outsourcing decision, you will need to create a design document and share with your internal team and outsource partner. It must have clear accountable milestones, testing requirements, and expectations for iterations.

The Partner Matters

Much of your success depends on how wisely you choose among different business process outsourcing services. Not everyone is meant for you and neither are you meant for everyone.

Perhaps the most important task is finding the best outsourcing partner. The best candidate is the one who makes you feel confident that he understands and is ready and willing to manage the risks and expectations of the project.

Ideal outsourcing company should have the talent to ensure your project comes to fruition. Every big and small organization should be looking for a partner that has a portfolio of quality work, as well a reputation for providing results and documentation throughout the project. It is best if they are also willing to help shoulder project risks while being flexible enough to share common goals.

Putting it all Together

Business process outsourcing services can rejuvenate the dead and declining business, flourish any company, boost up revenues and help new companies stand out the competition in an energy-draining business environment of 2019. 

The examples of GitHub, AppSumo, Upwork, Groove, Fab.com, Slack, SeatGeek, and Alibaba are the perfect scenarios to demonstrate the ultimate power of outsourcing. Therefore, you should not wait anymore. Hire best available business process outsourcing services today and expand your horizons the way you have always dreamed of.