8. Outsourcing keeps you from hiring the wrong person. A bad employee hurts every company, but a bad hire can destroy a start-up. Early hires in start-ups need to be considered very carefully, because they can make or break the business. Outsourcing allows a start-up to get work done while taking its time on hiring key employees.
9. Outsourcing makes companies more efficient. A start-up that outsources the majority of its tasks will always look for more things to outsource. By looking for jobs to "give away," the start-up will be able to group similar work with one outsourcing partner -- efficiently combining tasks that might otherwise have been completed by multiple people.
10. Outsourcing lets companies change direction quickly. Start-ups often require a few starts and stops before zeroing in on the long-term business model. Outsourcing lets a start-up "change its mind" quickly, adding and eliminating providers as needed without the burden and pain of hiring and firing full-time staff.
The only thing that should be sacred for start-ups -- the one thing that should never, ever be outsourced -- is that one special thing that makes the company unique. Each founder should know what that thing is for their company. That thing, whatever it may be, should never be outsourced.
Everything else is fair game.
Melissa Chang is the founder of Pure Incubation, an Internet incubator based in the Boston area. She blogs at http://www.16thletter.com.
More news, commentary, and predictions from The Industry Standard:
- Larry Borsato: Running a company using outsourced IT services
- Opinion: 10 'Net services that will succeed (and 10 that will probably fail)
- Melissa Chang: Five reasons why a recession is a good time to start a company
- Steve Brotman: Keep it simple, because VCs are stupid
- Larry Borsato: Vetting startup ideas at BarCamp
- Larry Borsato: Generalists not wanted here
Comments
Good points - it is impt to focus only on the core business and work - and let the rest be outsourced. But over a period of time you gradually bring all the functions in.
I have seen that work for many a company. Many people preferred to outsource complete IT, but develop some core app only inhouse. Same for other support functions - HR, etc.
-Des
http://techwatch.reviewk.com/
Clear, direct and so I agree with you but.... there is a "but"... you can become a slave of outsourcers when the things doesn't go as you like in the beginning of your adventure.
During the first launch period, the outsoucer should be flexible to follow you in a win-win opportunity, otherwise the fixed monthly costs can kill your business when it's not grow-up enough.
If you choose an outsourcer, you cannot chnage so quickly as you like... you cannot cancel training, agreements, working process, human connections so quickly... and remember that each time you must start again with a new outsourcer, you must value the internal and hidden start-up costs.
Good points - it is impt to focus only on the core business and work - and let the rest be outsourced. But over a period of time you gradually bring all the functions in.
I have seen that work for many a company. Many people preferred to outsource complete IT, but develop some core app only inhouse. Same for other support functions - HR, etc.
-Sid
http://antiagingview.blogspot.com
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