Building a business from the ground up can be rewarding, but it’s also extremely risky. The U.S. Bureau of Labor Statistics reports that 10% of startups will fail in the first year alone. And the longer it takes you to get your idea off the ground, the higher your risk of failure. 

On the other hand, according to an article from Forbes, 70% of startups actually fail because of premature scaling. In other words, it’s risky to grow too slow…and it’s risky to grow too fast!  

Scaling upward requires a major commitment of capital, resources, and labor. And with that commitment comes risk. Many startup companies are partnering with Business Process Outsourcing (BPO) providers in order to reduce that risk. Startups that join with strong BPO partners gain the ability to get off the ground quickly and grow steadily while significantly lowering the risk of startup failure. 

But how exactly can you leverage outsourcing to accelerate the growth of your startup and achieve lasting success? Read on for a look at five ways that an outsourcing partnership could help your startup scale, survive, and thrive. 

1. BPO Partnership Gives Your Startup Rapid Scalability

BPO partnership gives you access to a labor force that can be rapidly scaled upward and downward as needed. This is invaluable for a startup organization that may lack the capital, time, or risk tolerance to build an in-house labor force.

Building an in-house labor force is costly and time consuming. Each individual you recruit, hire and train will cost thousands of dollars before you even begin paying salary and benefits. This requires the investment of capital and time. 

When you make this investment, you are also internalizing all of the economic risk that comes with it. That risk can include seasonal shifts in product demand, changes in the cost of materials, supply chain disruptions, economic downturn, and any number of unpredictable macroeconomic calamities. 

A strong BPO provider will demonstrate experience scaling upward and downward to match market conditions. Your BPO partner can move with agility to grow or shrink labor output without gambling your startup organization’s precious capital, time, and long-term survival. This means your business can target rapid growth while limiting your risk exposure. 

2. BPO Partnership Supports Implementation of Next-Gen Tools and Technology

A rapidly growing number of small businesses are turning to Business Process Outsourcing (BPO) providers for access to emergent technologies. Automation, AI, and Machine Learning have become increasingly embedded in everyday business processes such as supply chain management, digital marketing, customer service, and more. 

Startups that wish to become competitive must adopt these technologies. However, these technology platforms can be costly, disruptive, and difficult to master for in-house personnel. Your BPO partnership provides access to leading edge technologies in areas like cybersecurity, data management, analytics, app support, and more.

In fact, says the Deloitte Global Outsourcing Survey, 78% of executives identify access to next-gen technology as the top reason for outsourcing. This is especially valuable for startup businesses who may not have the capital required for in-house implementation or training.

BPO services often provide direct access to both systems and support as you integrate new tools and technology with existing processes. Your BPO partner should provide more than just leading edge technology. Your team should also receive training and guidance on how to leverage this new technology. That knowledge can have inestimable value to your organization as you grow and evolve. 

3. BPO Partnership Expands Your Startup’s Knowledge Economy

When you join forces with a strong BPO partner, you gain more than just access to people and technology. You gain access to all the experience, expertise, and skills that these people and systems have to offer. Your business taps into a body of knowledge that can both expand and diversify your organization’s capabilities.

In fact, according to Deloitte’s Global Outsourcing Survey, “accessing new capabilities” ranks just behind cost cutting as a primary reason that businesses outsource certain processes. 51% of respondents say that access to these new capabilities is the primary driver behind the decision to outsource select services. This is especially true in areas like customer support, cybersecurity, data management, and financial services.

Most startups must balance growth objectives against limited resources and personnel. A strong BPO partner can help you find this balance, providing specialized knowledge in specific areas so that your internal team can focus on the core competencies that drive and define your business.

4. BPO Partnership Improves Your Startup’s Speed to Market

The right BPO provider can help you move from idea to implementation faster. And as a startup with limited resources, time is of the essence. Earlier, we acknowledged the risk of growing too fast. However, there is also a risk of growing too slowly. Forbes notes that 42% of innovations fail, not because the ideas themselves are bad but, because of the length of time it takes to get product offerings or services to the marketplace. 

By outsourcing your production labor, your business can significantly reduce the time it takes to develop and launch your product. By outsourcing your technological needs, your business may be able to expedite the launch of its services offerings. When you outsource these external processes, you gain access to the labor, technology, materials, facilities, and skills that come with your BPO partnership.

This gives you the power and resources to move faster and more efficiently. Naturally, the faster you get your product or service to market, the sooner you can begin pulling in revenue, and even turning a profit. 

5. BPO Partnership Extends Your Global Reach

A BPO partnership allows your fledgling business to build inroads into global markets. As a startup business with limited resources and a small in-house team, you may not have the capital, overseas personnel, or local knowledge required to establish your own offshore production operations. This can place your business at a disadvantage to competitors who do have access to local resources.

With a BPO partnership, your startup can leverage existing offshore production teams and systems, as well as the local knowledge and managerial “boots on the ground” required to make these systems work for your business. 

The benefits of this global reach are greater than just access to more affordable labor and production. You may also be able to tap into new and diverse consumer markets, specialized talent pools, and 24/7 customer service coverage without compromising the focus and energy of your local team.

Finding Balance With Your BPO Partnership

As a startup business, you’re always looking for balance—between growth and risk-management; between cost and quality; between in-house operations and outsourced business processes.

When you choose a Business Process Outsourcing partner, you’ll also want to find balance between global reach and local support. In an ideal partnership, you’ll have access to more cost-effective labor, supplies, and space through offshore production while enjoying the direct engagement, active partnership, and greater control that come with onshore management.

BPO partners like TechSpeed offer a hybrid outsourcing model that merges robust local support with optimized overseas production. This is a particularly effective model for a startup business with its sights set on accelerated growth and sustainable long-term success.