# How outsourcing can facilitate rapid growth for startups and SMEs
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2018-02-14
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: Outsourcing for SME Growth: The Key to Success
Meta Description: Discover how outsourcing can help small businesses streamline operations, save on overheads and focus on core tasks for efficient growth.
URL: https://financedigest.com/how-outsourcing-can-facilitate-rapid-growth-for-startups-and-smeshtml

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_Article to be bylined to Chris Cullen, head of sales and marketing at outsourced contact centre specialist_ [_Echo Managed Services_](https://www.echo-ms.com/)

Business growth and expansion are always front of mind for start-up founders and owners of emerging businesses. However, SME leaders without the support of a large team often struggle to devote the required resources to each area of the business, potentially becoming overwhelmed by the volume of work required to grow a company.This can particularly be the case where a business finds itself on a rapid growth trajectory.

This is why outsourcing can be a fantastic option for those looking to [grow their business or already in a period](https://www.financedigest.com/global-tool-holders-market-is-anticipated-to-reach-over-us-1604-5-mn-by-the-end-of-the-projected-period-growing-at-a-cagr-of-5-1-fmi.html "Global Tool Holders Market is anticipated to reach over US$ 1,604.5 Mn by the end of the projected period, growing at a CAGR of 5.1%: FMI") of growth. It allows them to focus on core tasks such as building and [marketing their product](https://www.financedigest.com/global-liquid-breakfast-products-market-to-reach-us-185-bn-by-2027.html "Global Liquid Breakfast Products Market to reach US$ 185 Bn by 2027") or service, whilst still ensuring that vital support activities like customer service are being professionally handled.

Outsourcing is proving to be a hit amongst the majority of business owners, with [research](https://www2.deloitte.com/us/en/pages/operations/articles/global-outsourcing-survey.html) from Deloitte showing that two in three organisations now outsource certain activities to other companies.

However, we know that [start-ups and SMEs can often overlook outsourcing as a way to grow](https://www.financedigest.com/building-a-fast-growing-start-up-as-a-female-founder.html "Building a Fast-Growing Start-Up as a Female Founder  ") the business, due to a perception that it is solely the preserve of larger, multi-national enterprises – one which could not be further from the truth. In fact, outsourcing certain processes of your business to freelancers, consultants, or even third-party [companies can be of huge benefit to a business](https://www.financedigest.com/truic-evaluates-the-biggest-business-incorporation-companies-in-the-us.html "TRUiC Evaluates The Biggest Business Incorporation Companies in The US") which is looking to grow, no matter what their size or relative budget.

Here, we’ll take a look at the different areas in which outsourcing can transform the growth prospects for [startups and growing](https://www.financedigest.com/4-strategies-for-quickly-growing-your-startup.html "4 Strategies for Quickly Growing Your Startup") businesses.

**Saving on overheads**

A major consideration for small [business owners](https://www.financedigest.com/carbon-zero-what-it-means-for-business-owners.html "Carbon Zero: What it Means for Business Owners") looking to grow their enterprise is managing their cost base, and ensuring that the business is as streamlined as possible.

This is where outsourcing can be a major help. We’re lucky enough to live in an age whereby cloud computing and increasingly advanced mobile technology make it possible for external consultants and third parties to contribute to the business from anywhere.

An outsourced workforce is a remote workforce, meaning smaller [businesses can keep their in-house team small](https://www.financedigest.com/the-small-businesss-guide-to-getting-started-in-digital-advertising.html "The Small Business’s Guide to Getting Started in Digital Advertising"), saving on overheads such as technology, infrastructure, and other administrative costs.

Customer service is a particularly great area to outsource, being a vital [support service](https://www.financedigest.com/tech-amigos-provides-unrivalled-aws-cloud-service-support-for-autorama-groups-leading-brand-vanarama.html "Tech Amigos provides unrivalled AWS cloud service support for Autorama Group’s leading brand, Vanarama") for any business regardless of size or sector. In fact, recent research from [KPMG](https://home.kpmg.com/content/dam/kpmg/pdf/2013/11/uk-ssps-survey-2013.pdf) found that enhancing their customer service offering is actually the number one reason companies are likely to outsource.

Outsourcing importantly frees up the core team to focus on other areas such as developing their products and services and pursuing new business leads, thus [driving further growth and success](https://www.financedigest.com/a-winning-team-how-corporate-champions-can-drive-successful-collaborations.html "A winning team: how ‘corporate champions’ can drive successful collaborations  ").

**Increased efficiency**

When starting a business, many entrepreneurs may fall into the trap of trying to do too much; attempting to tackle every problem single-handedly, no matter what it is. Admirable as this may be, any [successful small business](https://www.financedigest.com/why-seo-is-crucial-for-business-success-post-pandemic.html "Why SEO is crucial for business success post-pandemic") founder will tell you that there are only so many hours in the day, and the task of trying to grow a company entirely off your own back can quickly become overwhelming. Delegation is therefore key.

Being pulled between different tasks can be detrimental to both [productivity and mental health](https://www.financedigest.com/innovation-at-periodic-intervals-to-upscale-the-eye-health-products-market.html "Innovation at periodic intervals to upscale the Eye Health Products Market"). While multitasking may feel more productive, constantly changing tasks can be mentally exhausting, potentially leading to poorer standards of work. Being unable to give individual tasks the attention they require can also [lead to important projects](https://www.financedigest.com/arora-project-have-experienced-out-of-this-world-returns-with-their-lead-generation.html "Arora Project have experienced out-of-this-world returns with their lead generation") taking longer to complete, raising stress levels throughout the company.

This is why outsourcing is such a great option for growing businesses which are looking to make the most efficient use of their time – namely in developing and selling their product or service, thus bringing in all-important [revenue and developing the business](https://www.financedigest.com/pediatric-hiv-infection-treatment-market-by-covid-19-impact-analysis-volume-and-value-revenue-business-opportunity-future-projections-and-key-trends.html "Pediatric HIV Infection Treatment Market By Covid-19 Impact Analysis – Volume And Value, Revenue, Business Opportunity, Future Projections, And Key Trends").

Trusting various business [processes to external specialists enables businesses to keep](https://www.financedigest.com/keep-your-head-in-the-cloud-improving-the-order-to-cash-process.html "Keep your head in the cloud: improving the order-to-cash process") core team members focused on their designated roles, as well as on steering business growth.

**Which area would be most beneficial to outsource?**

Of course, it’s also incredibly [important to carefully decide which areas of the business](https://www.financedigest.com/importance-of-transparency-and-connections-in-business.html "Importance of Transparency and Connections in Business") will provide the most benefit from being outsourced, in order to ensure that limited funds are being used efficiently.

A great [place to start for business](https://www.financedigest.com/esg-investment-making-your-business-a-more-sustainable-place.html "ESG investment: Making your business a more sustainable place") owners is to take a step back and assess exactly which tasks – although necessary –take up too much precious time or are difficult for the business to perform to a consistently high standard.

An often-overlooked, but particularly vital, support task which can be outsourced is [customer service](https://www.financedigest.com/transforming-to-customer-centric-service-in-financial-services.html "Transforming to customer centric service in Financial Services"). Trusting this crucial process to an untrained, potentially overstretched in-house team can have catastrophic consequences for customer loyalty, with more than three in four ( [76%](http://linkis.com/bizreport.com/20/Otfk0)) of customers evaluating customer service as a key parameter of how a brand values them.

It’s imperative to consider the time savings which can be [made by outsourcing customer](https://www.financedigest.com/covid-19-has-made-your-customer-accounts-more-valuable.html "Covid-19 has made your customer accounts more valuable") service. [Businesses without a dedicated customer service department can find their working](https://www.financedigest.com/are-businesses-using-cybersecurity-as-a-scapegoat-for-a-desperate-return-to-office-working.html "Are Businesses Using Cybersecurity As A Scapegoat For A Desperate Return To Office Working?") day being constantly disrupted by a deluge of customer enquiries, which can be overwhelming for the company, and lead to a poor experience for the customer.

In addition, customer service call volumes can vary greatly, meaning that an in-house team may be team idle during quieter periods. If you instead outsource to an external team, you can choose to only pay for the services you receive, leading to [cost savings](https://www.financedigest.com/saving-on-water-bills-more-than-just-a-drop-in-the-ocean-for-businesses-facing-the-cost-of-living-crisis.html "Saving on water bills: More than just a drop in the ocean for businesses facing the cost-of-living crisis") which can be vital for startups.

At the other end of the spectrum, peak periods such as the [holiday season](https://www.financedigest.com/hasbro-ramps-up-toy-supply-for-holiday-season-to-beat-shipping-delays.html "Hasbro ramps up toy supply for holiday season to beat shipping delays") can prove too much for in-house teams. Outsourced customer contact centres are far more agile and scalable, able to quickly add extra manpower and resources when required to ensure that they can easily and effectively handle every eventuality.

**[Stimulating business growth](https://www.financedigest.com/bone-growth-stimulators-market-is-expected-to-earn-a-valuation-of-us-2-1-bn-by-2027.html "Bone Growth Stimulators Market is Expected to Earn a Valuation of ~US$ 2.1 Bn by 2027") through outsourcing**

Overall, outsourcing can be a fantastic way to facilitate growth forgrowing businesses and startups who may be struggling to focus their efforts on the [core](https://www.financedigest.com/ab-inbev-aims-for-core-profit-growth-of-4-to-8-over-medium-term.html "AB InBev aims for core profit growth of 4% to 8% over medium term") growth areas for their company.

Of course, handing over control to an outsourced party can come with risks, which include decreased quality or damage to a brand’s reputation. This is why taking the time to pick the right outsourcing provider is of critical importance.

This means looking for a partner who can add genuine value to the company, scaling their offering to appropriately manage the needs of a [growing business](https://www.financedigest.com/should-you-take-out-a-personal-loan-to-start-or-grow-your-business.html "Should You Take Out a Personal Loan to Start or Grow Your Business?"), while also becoming close enough to the organisation to act as a true brand ambassador for the company.

While outsourcing auxiliary services and picking the correct provider does require an initial outlay in terms of time and resource, this investment should be more than repaid through the increased productivity, reduced stress and [boosted profits](https://www.financedigest.com/festive-cheer-boosts-profit-outlook-for-uks-card-factory.html "Festive cheer boosts profit outlook for UK’s Card Factory") outsourcing can bring, all of which add up to create rapid, sustained business growth.


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