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Why companies outsource? Explore 4 main reasons!

Most managers and CTOs are great professionals and lead highly talented people, but at the same time forget that they’re not multi-skilled robotic creatures. This “ambition” can stop the business from growth.

Through outsourcing different tasks, you will be able to focus more on leadership and income generation. If you’re not fully into this idea, scroll down and read about 4 main reasons that companies decide to outsource.

Try to think about your company while reading this text – focus on your needs at the moment and gaps you’d like to narrow.

1. Outsourcing means more capital for growing

It’s a cliche but saving money is smart and necessary for many companies to grow, develop and stay on the market. If you’re more a saver than a spender, you’re going to free your capital and invest in other valuable parts of your business.

Saving and avoiding spending large sums are important, especially in the early stage of development. Luckily, you can take advantage of outsourcing it that regard – it frees your money. You can convert the fixed outlays into a smaller cost.

It can also pay-off if you want to find funding. Investors are more likely to trust your company, when they see you’re reinvesting money into areas that generate income.

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2. We can focus on core activities thanks to outsourcing

Ed Reeves, co-founder and director of Moneypenny says: “I hate doing accounts. It has, and always will be, my idea of purgatory. So one of the first things I did when I founded Moneypenny was to hire an accountant, someone who loves sifting through spreadsheets and sorting out figures.”

It’s a great example of a good approach to time management! Delegate things that you need help in to somebody else. Thanks to outsourcing you can stop wasting time on activities that will only make you irritated. Take care of your company and have time for that – it’s the best thing an entrepreneur can do.

Focus on growing, not on dealing with every minute activity essential to your company to function. It’s true to every manager, CTO in any business on the present market. Every person needs space, time and conditions to focus on their best abilities. If you can’t find it, consider outsourcing wich will allow for faster growth.

Read on: Productivity Tools for Remote Development Teams

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3. You outsource – you have access to experts

Working with the right, talented and dedicated people – is the way to successful growth. Of course, it’s an ideal situation – we know how hard it is to find such people nowadays. So the question is: how to find those geeks and invite them to work with you?

The answer is – outsource them.

They’re surely tasks you need help on part-time or one-off basis. It can be creating an app, a website, a logo or planning a marketing campaign or a content strategy. Anything. And all of those exemplary actions have to be made by experts.

You can access those talented individuals by outsourcing and save money and time on hiring inhouse. A very popular cloud technology allows for rivalling with the largest competitors on the market!

In Brainhub, we specialise, among other services, in IT team augmentation. It helps to speed up software development process with remote developers and product experts.

4. Outsourcing means flexibility

As you may know, in our fast-paced and changeable market, your business has to be flexible and ready to customize to client’s needs.

Let’s imagine a client who run a marketing agency. It typically gets a few phone calls and email inquiries a week. But after a very successful online campaign and an article in a respected trade magazine, the phone went red and emails keep on coming.

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The client needs support to maximize growth and control the level of service. Outsourcing support will allow this client for deriving professional help and expert’s knowledge in a busy period.

In this scenario outsourcing brings advantages such as:

  • instant help
  • professional support
  • adaptable service
  • empowering your business
  • higher responsiveness
  • free resources and time to focus on growing
  • fighting competitors

Areas of successful outsourcing

Today, the perks of outsourcing can be described as more strategic – focusing on added-value and assigning more & more activities to specialized contractors.

The areas for a successful outsourcing are as follows:

  • clear business objectives
  • strategic planning and following one consistent vision
  • selecting vendors
  • properly written contracts and agreements (clear terms and conditions)
  • great communication within a company
  • leadership support

Brainhub’s story

We cooperated with National Geographic to realize their visions. Our responsibility was to build a whole product from conception, through implementation, to maintenance.

Thanks to a lean startup processes, we decreased the software delivery time by 80% (when compared to internal National Geographic IT resources). Even a big corporation can act as an Entrepreneur, by becoming an Intrapreneur and benefit from outsourcing.

Matt Warcholinski

Matt Warcholinski is the COO of Brainhub (a software house building awesome node.js web and mobile apps) who loves to build startups and play guitar.

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