Startup outsourcing can be a boon for businesses that have a plan in place regarding which tasks or processes they need to outsource and which to keep in-house. However, it’s vital to keep in mind that it’s not a “set and forget” type of solution wherein you delegate tasks at the beginning of a project and expect your chosen outsourcing company to resolve any issues without your involvement.

You also have to find the right fit when it comes to choosing an outsourcing company because there are times when an outsourcing model doesn’t fit your company culture. You have to know first and foremost what problem you’re trying to solve. Strategic outsourcing aims to solve problems that affect the organization as a whole; it’s not simply an IT or customer service solution. This means that you need to know your business inside out before jumping into any outsourcing venture.

Understanding the Outsourcing Process

To embark on a successful outsourcing journey, it’s essential to understand the typical stages involved. Here’s a comprehensive look at the process:

• Initial engagement: Begin by filling out a contact form or reaching out directly, setting the stage for a structured partnership.
• Communication setup: An assigned manager or point of contact will handle all communications, ensuring seamless interaction and clarity throughout the project.
• Strategic planning and analysis: The outsourcing company will analyze the market and competitors, create tailored scenarios, and evaluate the scope of work based on your business needs and requirements. This step ensures alignment with your strategic goals.
• Design and development: The internal logic is formed, starting with mind maps, moving to wireframes, and culminating in live prototypes. This approach ensures a robust UI/UX design that meets your expectations. The coding and testing phases follow, often divided into sprints to track progress, fix bugs, and implement necessary changes.
• Deployment and support: For mobile apps, publishing in the App Store and Google Play is the next step. With web and desktop applications, direct deployment is often sufficient. Ongoing support is crucial to ensure the product’s success post-launch.

The Ongoing Outsourcing Conversation

While startup outsourcing is a partnership between your company and the outsourcing company, you should also ensure that there’s an “executive partnership,” that is, you should have the full support of the executive team. Otherwise, it will be a challenge to manage executive expectations and it could be a hindrance to the success of the project. Even if you’re delegating or outsourcing tasks or processes to a third-party, there needs to be a level of engagement between your company’s leadership team and the outsourcing company.

This is why it’s important to get buy-in from leadership and the other members of your organization to ensure a seamless transition. You need to have a strong business case for strategic outsourcing at the onset, with regular status updates as the project progresses. Timelines and expectations should be managed before and during the outsourcing venture.

Successful startup outsourcing is an ongoing conversation.

Startup outsourcing isn’t plug-and-play because it requires regular back-and-forth between you and your outsourcing company. It’s a relationship that should be nurtured and a process that should be monitored regularly if it’s to be successful.

Real-life Outsourcing Challenges

Even outsourcing companies face challenges when it comes to dealing with startup companies. The common pitfalls are miscommunication and a lack of understanding of the client’s needs. Most outsourcing challenges can be avoided through proper planning and identification of potential issues, but things don’t always go according to plan—even in our case.

The key for startup outsourcing companies is being prepared to address issues and keeping an open line of communication with the startup companies they’re working with. Below are a few challenges nXscale faced and the lessons we learned along the way.

The Communication Barrier

Direct communication is vital if an outsourcing company is to understand the client’s specific requirements. However, there are times that a client will hire another third-party to manage the outsourcing process. This can result in miscommunication and delays because communication lines are managed by a “middleman.”

In our case, this led to communication delays, missed messages, and misunderstandings because messages were not directly delivered by the client and unintentionally reinterpreted by the middleman. This arrangement also presented issues when it came to accountability because indirect communication resulted in a lack of context.

Lesson Learned: Always ensure that project details and updates are accurate and provided regularly. Clarify vague points if necessary and document discussions for future reference.

Lack of an Onboarding Plan

Although startup outsourcing may seem simple, the entire process can become overly complicated if you have no idea what you’re doing. Startups often know which tasks or processes they want outsourced but aren’t sure how to go about it specifically. This is where an outsourcing company can help.

It can still be a problem, however, when a client jumps blindly into an outsourcing project. Building a team doesn’t stop at screening and hiring the right people; companies should have an onboarding plan in place to help new hires learn the ropes quickly and get settled within the workplace—even if they’re working from home.

When we helped one of our clients expand their team, it became apparent that there was no onboarding plan prepared for the new hires. This resulted in confusion regarding employee tasks and other administrative concerns, which significantly affected employee morale and made team management more challenging than it had to be.

Lesson Learned: As an outsourcing company, the people you hire are also your clients. Ensure that you provide the same level of service to them as you would to your startup or business clients.

Not Enough Collaboration

For collaboration to be effective, there needs to be transparency between the client and outsourcing company. The purpose of regular status updates is not just to monitor the progress of a project but also to identify potential setbacks that can lead to delays or significant project modifications. Coordination between in-house and outsourced teams and between client and outsourcing company is crucial to maintain a high level of service that’s not bogged down by miscommunication and lack of visibility.

Lesson Learned: Always be upfront with clients to avoid making small issues worse and to avoid any further problems. Issues are more easily addressed when identified early, so discuss them as they arise and before they become more serious.

Not Sticking to the Startup Outsourcing Plan

There are times that changes need to be made due to unforeseen circumstances, but last-minute changes in project scope can often seem like going back to square one. Consequently, this affects the progress of the project and can lead to wasted time and effort. Always make the scope of an outsourcing project clear at the onset and stick to the outsourcing plan, unless there’s justifiable reason to divert from it.

Lesson Learned: Always prepare for reasonable changes in the project, but a change in scope means a restarting of a project or the creation of a new one.

Regional Price Differences in Equipment

Startup outsourcing entails working with providers in different geographical locations, which often lead to certain logistics differences like price of equipment and shipping policies.

When a client wanted to purchase laptop computers locally and ship them to our location, we faced some logistics problems. These problems weren’t limited to shipping delays, either, there were also the issues high shipping fees and customs and other taxes. When entering into an outsourcing agreement with clients, outsourcing companies should ensure that the clients are aware of the fees and taxes they need to include in their budget plans.

Lesson Learned: When discussing the budget with clients, outsourcing companies should always include regional taxes and other mandated fees to avoid surprises and align expectations.

We’re On the Same Team

Ultimately, what we’ve learned through our outsourcing journey is that we aren’t a separate team. When we work with you, we become an extension of your team—with the same goals and with the same dedication to achieving those goals. We are your offshore team, working with you to save costs while improving the efficiency of your overall operations.

Talk with us today and let’s discuss what your nXscale team can do for you.

If you’ve ever built a startup—or any business, for that matter—you know that resources are always limited, there’s never enough time, and you have to do the job of multiple people by yourself. Every entrepreneur and startup founder knows that the road won’t be easy, but the obstacles can still surprise you and throw you off-course. Obstacles can spoil your plans because they weren’t anticipated, you don’t have the resources to address them, or you’re unsure of your next steps.

Money will always be a concern, especially at the onset. It’s a delicate balance: pinch your pennies and your business might not grow at the rate you expected, but spend too much and it might not grow at all. Ironically, trying to cut costs aggressively when you’ve barely launched your startup can do more harm than good. Instead, focus on the aspects of the business that will help sustain it and push it forward, like marketing, which is an oft-neglected part of the startup planning stages.

Manpower is also something that should be considered during the early days of your startup. The nature of startups require specific skills and talent, and getting the right people can mean the difference between an up-and-coming player and a startup that would have made it. Staffing requirements should be considered while you’re just starting because, as your startup grows, any talent gaps and staffing issues are also magnified.

“I Can Do It” vs. “I Can Do It All”

A startup is a very dynamic organization by nature, and this can affect the roles that people play in the organization. Specifically, roles will overlap and you may find that you and your staff may be doing more than what’s in the job description.

As a founder, you may be tempted to do everything yourself, but this isn’t a sustainable solution. If you do the job of several people by yourself, you won’t be able to give 100% to any single task and you’ll be decreasing your productivity by as much as 40%.

Hiring the right people will prove to be a smart investment despite the process taking up a lot of time and effort, especially for small teams. Realizing that you made rushed decisions during the recruitment process can prove to be major hurdles down the line, as staffing issues are magnified as your team grows.

Startup outsourcing is a solution that helps new businesses bridge talent gaps while also keeping costs at a minimum. If you’re wondering if outsourcing can help optimize business processes or fill talent gaps within your startup, it may be time to start looking for a startup outsourcing company. Below are a few signs that may indicate your need for one.

You Have Very Specific Skill Requirements

Versatility is key in hiring for your startup, but this doesn’t mean that you’re hiring a single person to do everything for you. Some businesses or processes require expertise  or extensive experience in a certain field. Unless your startup specializes in a certain field, it’s best left to the professionals.

Startup outsourcing will help you with your staffing requirements by expanding the talent pool from which to get the people you need. Whether you’re looking for a finance expert, a web programmer, or a digital marketing professional, Outsourcing ensures that you get the right talent that fits your specific needs. Broadening your search also helps cut down costs and provides more options.

You Need a Cost-efficient Solution

For many startups, outsourcing is a solution that helps significantly reduce overhead costs. Aside from staffing, you get access to an outsourcing company’s resources and services. This is comparatively less expensive than hiring a full-time employee in-house. It’s also easier to hire people for freelance or project-based tasks if you have seasonal staff requirements. Outsourcing companies also offer back-office services like payroll, accounting, and office management, to name a few.

You Need More Time

If 24 hours in a day doesn’t feel enough to meet your deadlines and you feel like a candle burning at both ends, it’s time you asked for help. Startup outsourcing companies can provide the help you need by helping you hire people—plus onboard, train, and manage them if need be. As a founder, you should set the direction of your startup, but it doesn’t mean you have to steer by yourself.

You’re Looking for New Ideas

Startup teams start with good ideas, but you can’t expect them to have new, innovative ideas all the time. Often, even weekly brainstorming sessions don’t help, and only a fresh set of eyes can help you and your team get a new perspective. Viewing the business from the outside looking in can provide valuable insights that you may not have considered. Ideas from someone who is able to distance himself or herself from the business can help you identify areas for improvement and processes or strategies that you can double down on.

Key Functions to Outsource

While any part of a business can be outsourced, certain functions are particularly beneficial for startups to delegate:

• IT support and software development: Leveraging the expertise of tech professionals can ensure your digital tools run smoothly. These experts bring fresh ideas and ensure you’re using the latest technology, providing both innovative solutions and cost savings by avoiding the need to assemble an in-house team.
• Customer service and administrative tasks: By outsourcing these areas, startups can ensure that customer queries and paperwork are handled professionally and efficiently. This allows startups to provide round-the-clock support, enhancing customer satisfaction and loyalty across different time zones.

How to Achieve Startup Outsourcing Success

Startups looking to outsource effectively need a robust strategy. Here’s how to ensure your outsourcing venture thrives:

• Define your objectives clearly. Think of your outsourcing goal as setting your GPS. This clarity will not only guide but also empower your decision-making process, ensuring alignment with broader business goals.
• Maintain open communication. Regular and transparent dialogue is essential. It minimizes misunderstandings and helps keep projects on the intended trajectory, much like a steady navigation system.
• Establish clear expectations. Articulate your needs and timelines early on. Defined expectations act as a roadmap, helping to avoid potential pitfalls and conflicts down the line.
• Embrace diversity. Welcoming diverse perspectives can be a catalyst for innovation, offering fresh ideas and enhancing creativity within your projects.
• Prioritize quality over cost. While budget constraints are real, compromising on quality can be detrimental. Quality work should always mirror your startup’s core values and standards.
• Foster a collaborative environment. Treat your outsourcing partner as an extension of your team. Strong relationships can yield exceptional results, turning collaborative efforts into mutually beneficial outcomes.
• Select the right partner. Opt for partners who align with your startup’s ethos and ambitions. A shared vision can be pivotal in nurturing a strong and sustainable partnership.

By implementing these strategies, startups can navigate the intricate outsourcing landscape seamlessly, transforming collaborative efforts into fruitful successes.

The Future of Startups is Outsourcing

Startup founders should look beyond the negative connotations about outsourcing and focus on strategies that will make their business thrive. There are advantages and disadvantages to startup outsourcing, but with proper planning and delegation, it will more than pay for itself in the long run. Diversifying your organization ensures that you have the necessary competencies and a healthy mix of perspectives that can help take your business to the next level.

Schedule a call with us today to see how startup outsourcing can optimize your business for easy scaling and healthy growth. Focus on the more important things like strategy and business direction and leave the dirty work to us.

As a startup founder, there’s nothing wrong with looking ahead and making projections about your business and what it may need down the line. There will always be a roadmapping and planning stage that can take a couple of days to a few weeks, depending on project or business size. This is also the time when you figure out the right kind of talent you need to run your startup and start building relationships with potential candidates.

Now, more than ever, every company should be more careful and intentional about how they hire. The landscape is very different, and can be quite challenging if you don’t rethink your approach. Hiring more people doesn’t necessarily result in a more robust organization, especially if you don’t hire people with skills complementary to your business.

4 Tips for Startup Hiring

Projections made in the early stages of a startup are rarely accurate, and the same goes for startup hiring. Rather than hiring based on expectations, you should hire in response to demand. This isn’t to say that you shouldn’t be building a pool of candidates, but you should be careful when it comes to actually appointing someone for a specific role.

Below are a few ways you can improve your startup hiring process to ensure that you assign the right person to the right job.

Leverage Digital Tools

The talent market has changed drastically due to the pandemic. With most people in a remote or hybrid working arrangement, startup hiring has taken the same direction. Interviews are now done online, and although video conferencing tools help in putting a face to a resumé, it’s still a limiting interaction compared to an in-person interview.

Embracing digital means going where the candidates are: reaching them through their preferred media, talking in their language, and making an impression online. Using social media is a two-prong approach: you can use public social media profiles to get an idea about the candidates you’re looking to hire and you can use it to create a public company profile to help you put your best foot forward.

There are also software available today that can help you with screening and selecting candidates. Ultimately, the decision should be made with the help of these digital tools, but you should be careful of unconscious bias and use your better judgment when it comes to hiring candidates for your startup.

Build a Strong Brand and Online Presence

Building a brand is now mostly done online, and it’s vital because a strong brand lessens the need for active recruiting. Research shows that over 75% of professionals are passive candidates, widening your candidate pool and opening up opportunities to talk to those who are already hired but looking for greener pastures.

A strong brand and online presence puts you in front of these candidates and increases the chances of them and other actively applying candidates to interact with you and consider applying for your open roles.

Continuously improving brand reputation also has its long-term benefits, as it reduces employee turnover by as much as 28%.

Craft Conversational Job Descriptions

Job descriptions shouldn’t just be a rundown of responsibilities and requirements, it should be a description of the overall employee experience while working for your startup. It should communicate directly with your target audience and show them how working in your company can contribute to their career and personal growth.

Presenting a list of responsibilities without proper context will alienate candidates and discourage them from pursuing their application. You already know what you want your hires to do; show them through your job descriptions what your company can do for them if they become employees.

Be Your Own Salesperson

If you don’t believe in your own product, no one else will. In this case, your product is your startup; as a founder, you should be your own biggest fan. Potential candidates do their own research before applying for a job. They will only pursue an application if they like what they see about your startup.

Being the most active salesperson in your organization sets the tone for the rest of the employees and ingrains in them the organization’s and your brand’s best and most notable features.

Aside from the information from your website, candidates will look at social media, review sites, and information from current and past employees. If you have some negative reviews online, see if these issues can be addressed and take a look at how to further improve your company culture. Happy employees result in positive reviews and will help you land the right talent for the open positions in your organization.

The Start of a Startup

In the early stages, startup founders will find themselves performing a number of important tasks that will vary from strategizing to negotiating with potential partners or hires. In between all these, they should also be constantly “selling” the startup to customers. Active selling can help develop resilience in the face of challenges and objections, and will help you identify what works and what need to be improved.

Ultimately, Your growing startup will need the dedication of a capable team. It can be a challenge to hire people based on early projections, but hiring in response to demand will ensure that you bridge talent gaps and hire the best people for the job.

Talk to us today and find out how you can get the best talent in the Philippines and why you should consider offshoring your workforce during the startup hiring process.