How Small Growing Companies Can Benefit From Outsourcing

Did you know that as of 2022, there are already 70,000 startups actively registered in the U.S. alone? There’s certainly benefits when it comes to starting a business. Startups and small companies contain much potential, and with savvy management, they can prove to be lucrative in their respective industry. Like a newborn infant, growing companies need to be nurtured in order to grow well into adulthood.

Do you have what it takes to build a business from the ground up? There might be some struggles along the way, but take heart: there are logical solutions that can combat these issues.

One prime issue that arises when attempting to grow a company is scaling. This one proves to be the most complicated. How can you generate more profit, while expanding your team, all while decreasing overhead expenses, to boot? When scaling, you need to ensure that you’ve had solid, consistent growth first, and then reduce the costs. This is crucial, as 70% of startups have failed because scaling before growth was established.

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How can a new company tackle scaling? 

One way a company can tackle the dilemma of scaling is through outsourcing. Hiring an offshore team of professionals to handle day-to-day activities or your operations has proven to be a top solution for many companies around the world — U.S. included. Think of it as hiring a co-pilot from another corner of the world to help with things you might not have the time or manpower and resources for.


The benefits of outsourcing for startups

Contrary to popular belief, outsourcing is not just a tool for big business and multi-million dollar companies. Even small, grassroots businesses take part in outsourcing of various forms — virtual assistants, offshore teams, and freelance contractors are all avenues they use to stay running. If you’re a startup aiming to grow and scale, here are the benefits that will surely sway you towards this comprehensive solution:

  • Lower costs

Of course, the main reason businesses opt to outsource is to help lessen costs. Outsourcing can effectively cut down a year’s worth of expenses, most especially for small or growing businesses. In fact, it can cut down a whopping 70% of labor expenses

  • Negate the need for large overhead and infrastructure 

A major hurdle when getting your startup or new business up and running is office space. With a small headcount, it might not be necessary to lease an expensive, huge office floor. Thanks to outsourcing, you don’t have to upgrade or expand your infrastructure, as they’ll be working from their part of the world. Many outsourcing providers provide desks, computers, internet connection, tools, and even complete office facilities for the employees you outsource. You don’t have to worry about costs such as those anymore, as they are supported by the contractual fee you pay your outsourcing partner. 

  • Lessen staff turnover

Hiring the right employees is one thing. Keeping them around is another. These days, the job market is a jungle in itself. Opportunities pop up left and right, and we can’t blame people for wanting to expand their careers. For various reasons, the employee turnover rate in the U.S. last year was at 57.3%. As a start up, you’ll see employees come and go as you move along.

However, with outsourcing, the struggle to hire and replace staff is virtually non-existent. Your outsourcing provider makes sure to have employees readily available on board, and can hire new candidates for you in case the need arises. They’ll handle everything including sourcing, pooling, interviewing, and training.

  • Round-the-clock support

Lastly, you’ll want to make sure you have support easily accessible throughout business hours. Even when it’s after-hours in your physical office but you need to run 24/7 operations, your outsourcing partner will have helped you set up a shifting plan for employees to fill up your roster.

These are just some of the top reasons why your small business can benefit from outsourcing. Now that we’ve grasped that, what are some areas in your business that you can hire an offshore team for?

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What areas can growing companies outsource?

  • IT

IT, complicated as it is, is the most outsourced function in the world. Since the field is rather robust, you’ll need professionals to handle most information-related work to your business. Competition can be fierce when concentrating in your own local job market, so outsourcing the right professionals from elsewhere will be easier. 

  • Digital Marketing

Growing your company relies on more than just word-of-mouth. Brilliant digital marketing professionals are all over the world, and they can make use of their knowledge of SEO and strategic internet marketing to grow your customer base. 

  • Accounting, Payroll, and HR

A growing company would imply growing books. Accounting professionals can help track your expenses even when they’re not part of your physical office. In the same vein, you may also outsource payroll and HR professionals who work behind the scenes to handle compensation and benefits. 

  • Customer Service

Lastly, customer service is something you should not skimp out on. It’s the most crucial part of the customer experience, so having on-call agents always available to tend to customer inquiries will greatly boost your company’s reputation.

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Don’t have the time or resources to scale your business yourself? Finding an outsourcing partner is the next step for you.

FGC+ is an outsourcing company based in New York and the Philippines. With our tailor-made, client-centered outsourcing process, you’re sure to be one step ahead of the curve when it comes to scaling your new business from scratch. Learn more about us on our website at