Every company is different. However, the right time to outsource comes when either you or your employees, are unable to fulfill core responsibilities of the business. For example, if key personnel are using a significant amount of time on back-office and other administrative operations that deliver no growth value, it is time to consider outsourcing
Non-Revenue Generating functions such as customer engagement, tech support and IT, are an option for outsourcing to maintain and increase your customer base. Here are a few questions you have to ask yourself to know when is the right time to outsource.
1. How long does it take to execute back-office activities/prospect/startup customer acquisition?
Could that time be spent on revenue-generating activities? If the answer to the question is yes, then you might have found a priority area to outsource.
2. At this point of my business, could Outsourcing Foster Growth?
Both Domestically and Internationally, Outsourcing gives you access to expert supplier services and therefore fosters the economic growth of the region while boosting your business operations.
3. Cost of a full-time team vs. Outsourcing team. Specialists state that an entrepreneur could save anywhere from 40-50% by outsourcing depending on the positions and functions at hand while delivering considerable productivity sin savings, quality and time to their operations.
Most Startups that have taken the plunge with outsourcing have consistently shown growth in various areas of their business. Below a few examples of Startups that have outsourced their services and grown their business as a result:
a. Slack: Now valued at nearly $3 billion, used outsourcing to develop its solution in its earliest days.
b. Skype: Used a team of developers in Eastern Europe to help build out their business.
c. JPay.com: External developers helped strengthen their technology and infrastructure, outsourcing teams for quality assurance, engineering, and hardware.
d. Staff.com: Hired outsourced talent and freelancers for other organizations to grow from a startup into a globally business.
According to most recent data, over 14 million workers of US companies account for outsourced jobs, that is about 8% of the entire US workforce. The four industries that outsource the most are technology, call centers, human resources, and manufacturing.
While domestic work and in-house teams represent Traceability, Trust, Same Language and Time zones, regions like Latin America make a great alternative to outsourcing because of the same elements with additional savings in labor costs.
To conclude, more and more start-ups, as well as large corporations in the United States or trying to enter the American market, are increasingly looking at Latin America for outsourcing, offering a small difference in time zone and less drastic cultural differences. Allied Global has become a strategic partner for Startups and Fortune 500 companies by understanding the clients' needs and providing customized solutions.
We love what we do and are excited to share our story with you.