Building Better Startups - How Outsourcing Can Be A Key To Success

You’ve heard it time and time again - 9 out of 10 startups fail; in fact, 2 out of 10 don’t make across the 12-month threshold.

So should you be scared when it comes to building a business of your own? Yes.

But should you give up before you even try? Definitely NO.

There are numerous ways in which you can minimise the chances of failure, one which we will discuss here in greater detail - strategically outsourcing some of your business activities.

That’s right - by discovering dependable employees at a remote location, you can solve several potentially-catastrophic issues that startups tend to face and in that way increase your chances of growth and success.

How Outsourcing Helps a Startup Grow

Better talent acquisition

To realise your ideas, you need a dependable team, which you cannot always assemble by gathering the nearest group of people who meet the criteria (that is, people who are in your vicinity).

Luckily, we are more and better connected than ever and startups have the means to search for educated and experienced experts on a global scale. Moreover, partnering with a company that specialises in outsourcing can help you attract the best people for the job who might not otherwise consider you for an employer.

Why? Well, unfortunately, as you are still in a startup phase, you lack brand recognition, cannot guarantee viability, you don’t have proof of previous success and such you don’t seem like a great job opportunity (just yet!).

Decrease in cost

The majority of businesses that opt for outsourcing cite that the main reason is better cost management. This decision comes naturally if you think about the fact that most startups are operating at a limited budget and are self-funded.

The fact is - an MVP we previously talked about comes at a price. However, if you search across the borders of your own country, you might just stumble upon talented employees who will not charge you as much due to the lowered costs of living in their country of residence.

But be careful about going for the cheapest services, since these sometimes come with the lower quality of end result. Many startups have felt the side-effects of inexpensive labour on their skin, which is why the importance of a close-knit, co-located team cannot be stressed enough.

This is where nearshoring appears as a more viable solution, as you still get to hire more affordable talent while enjoying the benefits that come with this geographic proximity - overlapping work hours, easier communication, cultural understanding, reduced travelling costs, etc.


Improved focus

It is not uncommon to see a startup CEO juggle multiple obligations on a daily basis, most of which should not really be their responsibility in the first place. Some see this multitasking as a cost-saving measure, while others don’t feel confident about delegating certain activities to people other than yourself. Whichever the case may be, the end scenario is always the same - until you realise that you are in over your head and your business is suffering because if it - it is too late.

Finding an outsourcing partner can help you discover one or more people qualified to complete certain activities on your behalf and thus give you more room to focus on other important work related to your position. What is more, by hiring people who have greater experience in those areas of work than you, it is possible to see improvement in the way things are completed.

Global reach

If you plan on reaching international clientele, establishing an outsourcing team is the best way to get close to a target market. Your outsourced team can serve as your point of contact customers can turn to in case certain activities require personal interaction. Your remote employees will help bridge the gap between you and the target culture - in terms of language and a general understanding of their needs. This is why many companies decide to outsource, for instance, their customer support services - to better connect with the locals and show them they are committed to meeting their requirements, which will help you increase brand reputation and credibility.


Outsourcing can bring about numerous benefits for startups, no matter the industry they operate in. Nevertheless, to truly facilitate business success, an outsourcing partner should be selected carefully. Evaluate their expertise and experience, make sure they are to be trusted, and build solid communication channels to eliminate miscommunication from the equation, which can, in many cases, be fatal.

Mike is an Australian business consulting specialist. He’s working with companies that outsource their IT maintenance. He often writes about technology, business and marketing also he is a regular contributor on several sites.


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