Theoretically, a startup can outsource any business activity. Unless your business activities rely on factors other than human resources such as the need for a specific technology or high confidentiality, any task can be outsourced. It all depends on the needs of the company and if the company can accommodate those needs in-house. 

Startups lack the capital and finances required to establish an in-house team for every business function. Outsourcing those functions and business processes can be a lifesaver for startups.

Here, we look at the types of activities a startup can outsource.

1. Software development / IT

Software development and IT management are two of the most prominent outsourcing industries. The global market, in fact, for outsourced services related to IT management reached $92.5 billion as of Feb 2022. Many agencies offer on-demand assistance to businesses and they handle all types of tech issues. 

2. Customer service

Customers are the kings or customers are always right. These are some common beliefs throughout every industry. With a growing business, if startups are facing problems providing customer support or handling customer inquiries/complaints, this business function can also be outsourced. 

Proficiency in the English language is a top priority for agencies that hire outsourcing employees. So, they can handle call centers or online chat services easily and without hassle. However, it's usually a better idea to undertake the responsibility of training the employees by the startups themselves. Since the way employees interact or deal with customers reflects the image of the startups, they should focus on teaching the core values of the company to the employees.

3. Accounting

Unless the business idea of startups is around financial products or services, they should focus on market acquisition, customer engagement, product development, etc. So, if the entrepreneurs are not financial experts, instead of learning to account or hiring an in-house accountant, they can easily outsource this function as accounting is not a highly important function.

4. Administrative Tasks

With remote work and work from home being embraced worldwide, the demand for virtual assistants (VAs) is increasing exponentially. VAs are capable of handling everything from email handling, schedule management, social media posting, assisting your officers, and many more. Additionally, they can also perform database organization/management and perform basic CRM tasks. Startups can outsource these less important jobs instead of hiring employees.

5. Research

Research helps startups learn more about various aspects of their business like product performance, industry trends, customers, etc. The findings can help improve the related aspects of the company effectively. Since research is all about collecting data and analyzing it, a startup can assign this task to an outsourcing agency. Even if the company wants to do the analysis on its own, data collection and research can be easily assigned to an agency.

6. Data cleansing and processing

Data cleansing and processing must be done by someone who has data interpretation skills. They need to be aware of various tools and techniques that help in performing these tasks. While this task is important, it is not necessary to hire someone in-house and pay them a high salary. Outsourcing agencies can easily find employees who are capable of doing it for startups.

7. Creative services 

Jobs like marketing, content writing, design, animation, etc. need employees to be creative and come up with new ideas. While one or two people can do these creative tasks, better ideas come up when there is a team of people working behind the scenes. Thus, instead of hiring a bunch of people to do these works in-house, startups can outsource creative tasks to agencies that already specialize in them and have a group of people to work with.

Takeaway

Outsourcing allows a startup to get more things done and focus on its core competency. The list of business functions that can be outsourced does not end here. A startup can outsource almost any function if it fits their purpose, they can find a good agency, and if they’re not deviating from their core competency. Thus, along with the benefits of optimal resource allocation, there are multiple other benefits of outsourcing that make outsourcing a viable option for startups.