Congratulations! You’re startup business is growing. That also means you need to scale your operations to meet the needs of more and more clients without burning out your team.
One way you can do that is to assign non-core, repetitive tasks to an outsourcing company.
Let us walk you through what you should look for in an outsourcing partner.
What Is an Outsourcing Company?
Let’s say you’re a Creative-as-a-Service (CaaS) startup. Now that you’re getting more clients, you want to delegate the project and administrative tasks to someone else so your team can focus on your core competencies—visual design, branding, content layout, and post-production.
An outsourcing company is exactly the specialist you can delegate these tasks to. It will be your executive assistant that’ll arrange your schedule, track tasks and deadlines, and organize documentation. Hiring it enables you to operate and scale your CaaS business more efficiently.
In fact, there’s an industry saying that sums up what an outsourcing company is and does:
The tasks that slow you down are the tasks another company is built around.
Why Businesses Turn to Outsourcing Companies
Sixty-six percent of U.S. companies choose to outsource at least one department (Zippia, 2023) because outsourcing helps them scale operations and reduce overhead.
Of course, as a CaaS startup, you don’t need to have an entire department to consider partnering with an outsourcing company. Our earlier example is proof of that.
What matters is that, like the 66%, the specific reasons below resonate with you and can help relieve your internal situation.
1. You Can Focus on Core Business Activities
How much time does your team consume performing repetitive tasks, like answering emails, encoding data, or calculating project costs, in an eight-hour shift? Are they juggling these with their main tasks?
If they’re doing these for most of the shift, these will drain your team’s energy and hurt their creativity, making them unproductive, which, in turn, slows your business.
But when you outsource these repetitive yet essential tasks…
- You can save time, effort, and money.
- Your team can finally put their energy into completing projects for clients.
2. You Have Someone to Share Operational Risks
What if you hire someone who’s good on paper but bad in practice?
Do you have the resources to train a newbie? to attract and retain a seasoned talent?
Are your risk management protocols enough to ensure regulatory compliance, data security, and business continuity?
These are the worries we often hear from startup leaders like you.
But when you outsource, you can manage operational risks more effectively and, most importantly, avoid costly mistakes. Partnering with a specialized outsourcing company in the Philippines, for example, can help reduce your risk exposure because they’ll…
- Help check the talent’s credentials
- Handle the training
- Take care of the requirements and compliance
3. You Can Reduce Employee Turnover
Startups usually have a cutthroat work environment to grow fast and compete with big-name competitors. Because of this, they have a 25% attrition rate, about 2x the national average (RingCentral Pulse, 2025).
Of course, this might not apply to your case at the moment. But when you find that your team is working longer hours than expected or constantly replacing a member in the same position, consider outsourcing.
The outsourcing company can help you find expert talent who enjoys working on creative services projects. In turn, you and your team finally have the breathing space to make the workload manageable, avoiding burnout and reducing employee exits.
4. You Can Tap Into Advanced Tech
There may be advanced tech (equipment, tools, and systems) that you don’t own or have access to due to cost or time constraints. However, you know these are necessary to operate the business and to provide quality employee and customer experience.
You can access such tech when you partner with an outsourcing company. They have AI, automation, data analytics, omnichannel communication, and CRM tools you can leverage instantly and at an affordable price.
5. You Have Compliance and Regulatory Support
If you see your startup branching out to another state or country, you have to look into and understand the compliance and regulations there. This might be a challenging task to navigate alone as a non-local; with an outsourcing partner, not so much.
The outsourcing company based in that region understands how these compliance and regulations work. They can help you stay compliant locally and internationally.
Key Factors to Consider When Choosing an Outsourcing Company
The reasons above resonate with your situation, and now you’re considering partnering with an outsourcing company.
But what makes an outsourcing company a good, reliable partner for your startup business?
1. They Respect Your Cost Considerations
Your partner should offer you a transparent, flexible pricing structure within your budget. Most of the time, you can choose to pay on a per-hour, per-transaction, full-time equivalent, outcome-based, or hybrid basis.
2. They Can Scale According to Your Business Needs
Your business needs will change over time—there’s no doubt about that. So, your partner should be able to adapt to it, providing the necessary resources with minimal disruptions.
For example, due to the upcoming holiday season, client requests increased, and you need to add 2–3 talent to your outsourcing team. Your partner should be able to quickly ramp up the service on demand.
3. They Have the Tech Expertise and Industry Knowledge
Your partner should specialize in the tasks you’re planning to outsource and have worked with clients in your industry in the past. Only then can you be assured of the quality and efficient service you’ll be getting. Also, should any issues arise, they can resolve them promptly.
4. They Have Skilled Outsourcing Teams
Your partner should have skilled professionals (the top 1%–5%) readily available that match the capabilities and experience you’re looking for and fit right into your team.
5. They Show Clear, Effective Communication
Seamless communication is vital to successful outsourcing partnerships, as it enhances efficiency and prevents misunderstandings. That’s why your partner should be able to collaborate, interact, and respond with you with clarity and promptness through reliable channels.
6. They Possess Advanced Infrastructure, Tech, and Resources
You’ll be relying on your partner’s expertise a lot, so they must have a reliable infrastructure system, tech, and resources to support your startup.
P.S. Ensure their compatibility with your systems to prevent project holdups.
7. They Can Be a Long-Term Outsourcing Partner
After working together for a while, you find the partner reliable and trustworthy enough to consider continued collaboration. This is good for you because it will give them a deeper understanding of your business and a stronger alignment with your objectives.
8. They Can Back Up Their Reputation
Your partner should have a strong online presence that checks out their legitimacy as a company. Also, they have readily available case studies and client references (preferably from your industry) to prove they have helped startups like yours achieve satisfactory results.
9. They Present a Clear Service-Level Agreement
You and your partner should stipulate the mutual expectations and limitations in the service-level agreement (SLA), which includes but isn’t limited to:
- Scope of work and exemptions
- Performance metrics
- Incentives and bonuses
- Remedies and penalties
- Additional costs and services
- Security standards
It’s also important to periodically review the SLA to ensure alignment of both your goals and expectations.
10. Their Culture and Values Align With Yours
To ensure a cohesive working relationship, you and your partner must share a common work culture and values. It ensures you have a similar mindset, making workflows much smoother and preventing friction from occurring during the project.
11. They Have Robust Risk Management Strategies
Outsourcing always has inherent data security risks because you’re sharing sensitive information with your partner. That’s why they should have viable information security management systems in place to protect your data against cybersecurity threats. This includes regular performance assessments and global compliance checks.
12. They Ensure You Have Governance and Oversight
Although it’s your partner who recruited the talent, the outsourced team is essentially yours. So, you’ll have the freedom to monitor the team’s performance through established metrics, performance reviews, and feedback sessions to ensure the work meets your standards.
Red Flags to Watch Out For
In business, you can’t avoid encountering some bad apples. So, if you notice any of these in a potential partner, you should look elsewhere for a better match.
1. They Lack Historical Success
Your partner, a supposedly established outsourcing company, couldn’t show you a comprehensive portfolio of successful client projects.
Warning Signs
- A thin portfolio (fewer case studies, client testimonials, references, etc., compared to others of a similar size and industry)
- No presence or reputation in the local area
- No online presence
2. They Show Poor Scoping and Questioning
Your partner goes straight to the offer without making an effort to understand your situation.
Warning Signs
- Doesn’t ask in-depth questions
- Deflects your queries and talks with ambiguity
- Agrees immediately to every service you ask about
- No well-defined strategy or offers cookie-cutter solutions
- Pressure you to rush the vetting process
3. They Offer Suspicious Pricing
Your partner’s pricing model is unclear, or too good to be true.
Warning Signs
- Offers you pricing then and there
- Offers pricing that’s much lower than the industry standard
- Doesn’t list all the relevant costs upfront (what is and isn’t included)
- Doesn’t specify how and when the pricing would change in the future
4. They Show Poor Data Security and Compliance Practices
Your partner couldn’t provide you with comprehensive information on what they do to protect your data and how they do it.
Warning Signs
- Isn’t compliant with the recognized global regulations (DPA, GDPR, HIPAA, etc.)
- Doesn’t have ISO/IEC certification, particularly ISO/IEC9001 and ISO/IEC27001
- Unclear business continuity plan or disaster recovery plan
5. They Show Contracts with Legal Ambiguity
Your partner presents vague contract terms that you’re sure would lead to future disputes.
Warning Signs
- Undefined intellectual property ownership
- SLAs lack detail or boundaries
- Exit terms aren’t explicit
- Data handling responsibilities aren’t clearly assigned
- Limited liability protections
6. They Show Signs of Weak Financial Stability
Your partner has monetary problems upon checking their books and financial statements.
Warning Signs
- Poor liquidity ratios
- Stops investing in employee training or infrastructure and tech
- Sudden layoffs or downsizing
- Inconsistent billing or unclear charges
- Frequent delayed salary payouts
Questions to Ask Before Signing a Contract
Okay, you decided on an outsourcing company to partner with. You’ve discussed everything that should be covered, and all that’s left is signing the contract to make it official.
But before you pick up that pen, we advise you to ask these last-minute yet essential questions to ensure the success of your outsourcing project. Doing so will protect your finances, operations, strategies, and legal standing.
- What are the contract terms, length, and notice period for termination? – so you avoid lock-ins and restrictive exit terms.
- Are there any minimum commitments or early termination fees? – so you won’t worry if your needs change in the future.
- What services are included, and what incur additional fees? – so you know clearly what the scope is to prevent surprise costs.
- What security measures are in place to protect my data, and have you had breaches in the past? – so you’re assured that your data isn’t exposed to cybersecurity threats.
- How will you service and oversee my account, and who is accountable? – so you know who to contact with and trust to monitor the outsourcing team’s performance.
- How quickly can your team fully take over the tasks I’m outsourcing to you? – so you can return to paying attention to your startup’s core business activities.
- How will problems, mistakes, or service disruptions be handled, and will I be reimbursed if you’re at fault? – so you can establish accountability.
- How often will I receive communication and performance reporting? – so you can take measures immediately.
- What happens if a team member doesn’t work out? – so you can plan for the continuity of the outsourcing team.
- What if my needs change mid-contract? – so you can freely scale the outsourcing team.
Scale Your Startup Through an Outsourcing Company
Scaling operations requires more resources and hands on deck than you’ll expect. But your Creative-as-a-Service startup business—or any startup business for that matter—can take it easy when you partner with an established and trusted outsourcing company.
In fact, we highly recommend that you look offshore and outsource to the Philippines. Not only will you find the talent and access the tech you need, but you’ll also cut 70% off your labor and operating costs due to the low cost of living there.
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