A number of start-up companies have a variety of innovative service offerings and products to share with the world. However, when they try and take on all business functions at once, their own business can in turn suffer. In efforts to avoid a negative impact on their growth, owners should focus on building their company and key business operations with minimal distractions. Outsourcing is a great option for start-up companies to advance their growth without depleting or competing against their resources and can provide many benefits over keeping all operations in house.

What is Outsourcing?

Outsourcing is an agreement in which one company hires another to perform and take on partial or all responsibility for an activity. Subcontracting various business operations to third party vendors is also known as Business Process Outsourcing (BPO).

Why Would a Business Outsource?

Many start-up or small companies are made up of only key employees to get the business off the ground. In order to avoid making additional hires and increasing payroll costs of the company, these employees take on all business tasks including those outside of their expertise. This can cause the quality of work to suffer and take away from growing the business as efficiently and effectively as possible.

Here are the most common reasons surveyed businesses chose to outsource:

Cut Costs
Focus on Core Business Functions
Solve Capability Issues
Enhance Service Quality
Focus on Critical Business Needs
Access to Intellectual Capital
Manage Business Environments
Drive Transformational Change

What Can a Business Outsource?

A business can outsource any operational tasks that are needed. When deciding which operations to outsource first, companies should focus on those areas outside of their skillset and employee expertise as well as those that would cause them to incur additional costs or hires.

Some examples of areas businesses typically outsource are:

Human Resources
Payroll
Recruitment
Administration
Finance/Accounting
Customer Service
Business Development
Marketing
IT and Tech Support
Legal

What Are the Benefits of Outsourcing?

Cut Costs:

The biggest benefit of choosing to outsource business functions is often to reduce costs. While many companies believe they are saving money by keeping everything in house, that is typically not the case. Projects can hit the ground running and be completed in less time when outsourced to the proper professionals. It also frees up funds that might be used to hire previously necessary employees and prevents companies from having to invest in additional equipment and software. Outsourcing leads to saving money on capital investments, office space and infrastructure.

Reduce Lead Time & Errors:

In addition to minimizing costs, outsourcing can also help a business reduce both their lead times and errors. With a few key employees taking on the bulk of the work the quality of work can suffer due to workload. This can cause an increase in lead time to complete tasks and the potential for error grows. Hiring a team or vendor to complete and focus solely on these tasks can help prevent such issues from arising.

More Specialized Talent

When companies have an open position to fill they are working within a small pool of local talent and may not find exactly what they are looking for. By choosing to outsource, the company opens itself up to a seasoned recruiter’s expertise and an expanded pool of talent. Start ups and small companies should utilize the opportunity to work with firms that specialize in their specific market segment or the business task they are hoping to outsource. This gives companies access to the best expertise in the field to grow and sustain their business.

Working with PharmaOut

Here at PharmaOut we offer specialized outsourcing to startups in the Pharmaceutical, Biotech and Medical Device industry. Our team of experts has years of experience in the key functions of the industry to help take your business to the next level and take some of the workload off your shoulders. We offer the following services for your company:

Management Consulting
Risk Mitigation
Vendor Management
Project- based Resource Outsourcing
HR Outsourcing
Recruitment Process Outsourcing
Payroll Services
Executive Level Search
Permanent, Contract and Contract-to-hire Staffing Services
Partnering with a full-service firm like PharmaOut will provide your company with stop gap measures and long term solutions to your business needs. Our team of experts create customized solutions to pace your organization’s growth to best suit your unique company needs and deliverables. With traditional consulting, outsourcing, contract, full-time and executive-level placement of elite talent – PharmaOut can structure engagements to meet any client need.

For more detailed information on our services please visit: https://www.pharmaout.com/service-offerings/

For any questions or inquiries please contact: info@pharmaout.com

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