Four Reasons Your Startup Should Consider Outsourcing

The global outsourcing market is estimated to be worth around US$90 billion. Within that vast market are businesses of all sizes, outsourcing the work of marketing, accounts, IT, HR and many other departments. And with good reason. Outsourcing your work can help your business save money, assign specific work to specialists, save time, and expand your offering.


Do you want to expand your business to the next level? Or improve your talent pool without incurring the costs of hiring new staff? Let’s look at how you can achieve just that through outsourcing.

Outsourcing saves you money on staff 

Reducing costs is the number one reason why companies outsource. In fact, 59% of companies surveyed cited cost reduction as their motivation for putting this into practice. Why? Outsourcing tasks to trained professionals allow you to stick to smaller budgets and only pay for what you need. This is usually far more cost-effective than hiring a full-time employee– which can be a pricey business here in the Nigeria.


Many organizations, big as well as small, have experienced savings in their costs by outsourcing software development, Marketing or IT services to businesses that take care of that. In fact, today, cost savings is one of the first motivators that drive companies towards outsourcing. And we are not just saying because we believe so; we have numbers to prove the same!

1. Almost 27% of organizations outsource to reduce costs, states recent IBM research report. 

2. In an Australian survey of 7500 public organizations, outsourcing saved around 46% of costs over in-house.

3. Analysis of 210 studies in the past two decades reveals a whopping 85 of them to be talking about outsourcing as an effective way of reducing cost.

4. A 2003 McKinsey Global Institute study states outsourcing IT services reduces cost by 60% in the US. 

5. A drop of $121.14 million in non-IT operating costs was witnessed as IT outsourcing spent increased to $96.14 million.

6. As per a Deloitte study, 64% of the companies consider cost-savings as the primary factor driving them towards outsourcing.



An expert for every task was something unimaginable for many businesses in the past. Now, thanks to outsourcing, it’s easily achievable. Why wouldn’t you take advantage of that? Or to put it in the words of former US politician and vice chairman at JPMorgan Chase, Alphonso Jackson, “Where the work can be done outside better than it can be done inside, we should do it.”

Outsourcing saves you time 

Perhaps you’re not at the stage yet where a fully outsourced IT or HR department is required. But maybe you’re at full capacity and need to free up the time to focus on more business-critical tasks. There are plenty of easy ways to do this.

Outsourcing smaller tasks – checklist:  social media management, content creation, email marketing, admin and filing, and invoicing. Taking these tasks off your desk frees you up to focus on growing and improving your business. Plus, as every task you outsource is now in the hands of a specialist, you’ll also save time on project management.

This means no need for prolonged planning and review meetings. Simply brief your freelancers and they’ll take care of the rest. The process is simple, fast, and cost-effective. And that is ultimately why so many businesses do it.


Outsourcing allows your business to expand its offering 

There’s another major benefit to being able to call on the services of an expert –or a team of experts– whenever you need it. It allows you to expand to new markets gradually without breaking the bank.

Say you run a clothing business and want to expand to make shoes. Traditionally, this would have been a lengthy –not to mention costly– process. You have to hire someone to conduct market research and analysis, employ new staff skilled in shoe manufacturing. Then there are the additional resources you would need to sell your product into a new market.

Outsourcing allows you to essentially pay as you go 

Hire a freelancer to carry out your market research: If you are happy with the results, outsource a small run of production to a manufacturer. Next, engage the services of freelance marketing and sales professionals for only the hours you require and can afford. Essentially, outsourcing lets you grow into new markets at your own pace without overstretching your resources. Test the market, and if the demand is there, gradually dedicate more outsourced resources to this area of your business.

Outsourcing and your company’s future 

If you’re looking to increase capacity, expand your offering, or improve your skill set, there’s no easier or more affordable way than through outsourcing.

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