Globalization has brought “multinational” companies’ expansion to the next level, even beyond our imaginations. In fact, some of these companies’ revenue is comparable to a country’s GDP.

So, if you want to start a business, and your aim is to be recognized globally, the question that lingers is – given this big companies’ hegemony, how can you do it?

In parallel, according to the Erasmus Center for Entrepreneurship, 90% of start-ups go bankrupt, and only 10% manage to scale up and survive within 5 years.

I get it, it’s hard but it’s not impossible.  But it will be if you are not equipped with the right mindset and tools.

If you want to cut through the statistics and outlast the predictions; and increase your chance to penetrate the market, obviously, you have to look for ways to preserve your capital while utilizing each cent.

Doing so can increase your chance of survival and hopefully can be an answer to the question above.

To help you traverse the right solutions to implement in your business, in this article, I will introduce you to Tech Outsourcing which could be a game-changer for your start-up venture.


Saving Money with Tech Outsourcing 

Cost efficiency is often the top-of-mind for start-ups working with tight budgets. 

Oftentimes, this is one of the main reasons why such companies cease to exist after money’s all gone.

For this reason, outsourcing tech services can massively cut down on expenses, because it offers start-ups the capability to not put money into costly equipment and IT staff, and spend their cash more wisely. 

According to a Deloitte survey, 59% of businesses cited cost reduction as the primary reason for outsourcing. Businesses can save up to 60% on operational costs with IT outsourcing.

Outsourcing gives start-ups access to skilled pros at a lower cost than a full-time team. This savings allows start-ups to concentrate on essential business tasks like product development and marketing.


Tapping into Expert Knowledge 

The tech industry changes quickly, and it can be tough for start-ups to stay current, with experts expecting it to grow 5% annually, with new specializations and technologies emerging every year.

Making use of Technology is essential as it enables the automation and integration of software-based processes that can enable scaling up for such companies.

Outsourcing offers start-ups a way to tap into specialist knowledge. Tech service providers have a wide range of knowledge and experience, from software development to cybersecurity to data analysis. 

Using this expertise from a remote workforce, lets start-ups use the latest tech solutions and outpace rivals without the need for extensive training or research.

Adapting to Changing Needs 

Start-ups often see their resources shifting as they grow, due to more challenges and business insights; adjustments are necessary to attend to these needs.  

Similarly, Remote Staffing which is a perk of Outsourcing, can provide scalability and flexibility, letting start-ups adjust quickly to these changes. 

Whether there is a need to grow a development team for a new project or scale back in slower times, outsourcing offers the necessary adaptability. 

For example, Opera a popular browsing application outsourced its project and contacted developers from 25 different countries to develop their application.

An outsourcing service provider can increase or decrease the resources it can give to a start-up based on its current needs. This flexibility means start-ups always have the right amount of support, without the need for a permanent in-house team.


Focusing on What They Do Best 

For start-ups, the importance of focusing on their key strengths to thrive and grow is clearly being given importance. 

Through the utilization of tech outsourcing, start-up companies can delegate non-core tasks to a remote team and concentrate on essential operations. 

Similarly, a 2020 report from Deloitte found that 57% of companies use outsourcing to focus on their core business, allowing companies to focus on strategic planning, innovation, and getting new customers. 


Managing Tech Risks 

Tech risks are a tough endeavor for start-ups to encounter, especially when it comes to sensitive data and cybersecurity threats which can affect their services and clients.

A report from IBM indicates that the average cost of a data breach in 2020 was $3.86 million, a big money to pay for a starting company with limited resources. 

Outsourcing tech services to specialist providers can significantly improve risk management. These providers have strong security measures and systems in place to prevent data breaches and cyberattacks. 

Keeping up-to-date knowledge with the latest security trends, ensuring that start-ups’ tech setup is secure and meets industry rules. This proactive approach to risk management is a critical solution for start-ups.


As Technology evolves, it narrows the gap between big multinational companies and start-ups, as it allows the latter to scale up and have a chance to dominate the market.

However, taking advantage of this technology can also become a hassle for start-ups if they do not have the right infrastructure and expertise.

Technology Outsourcing can be a solution to this as it offers better cost efficiency, access to specialist knowledge, scalability, and flexibility, as well as a chance to focus on the business’s key strengths, and improved risk management. 

It can be a strategic move for start-ups to fuel growth and tackle challenges, going for outsourcing allows start-ups to use their resources to the max, boost innovation, and stay ahead of their competitors.

Whether you avail of such services or not it cannot be denied that it is now becoming go-to solutions for start-up companies.

However, this is not your magic solution provider to all your business needs, it is also worth noting that proper research and needs assessment must be done before starting to outsource your business operations.