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  • Writer's pictureNicolas Guillaud

Can SaaS startups cut their burn rate by 30%?

Outsourcing is a great solution for SaaS startups in this current challenging environment. It is the process of hiring a third party to provide services instead of hiring and managing employees. It is an effective solution for startups that want to reduce their costs or develop their activities without taking risks.

Such an organization is great but subject to taking a few precautions.

First, keep your free will.

Almost everything can be outsourced, so choose the tasks furthest from your core business.

Indeed, you need to find someone to perform a task that you or your teams could not do without encroaching on other more essential duties.

Second, define specifications.

Even if you are convinced of the benefits of outsourcing, it is imperative to prepare specifications.

It is an informal document that will list what is expected, such as the tasks to be carried out and their recurrence, the means to be implemented and your expectations in terms of results to be achieved.

Third, choose your provider.

It is difficult to find the right service provider, as there are plenty of different services and at all prices.

It is therefore necessary to select and ask several potential providers, on the way in which they intend to do the job.

Of course, this service provider must provide you with several proofs of their ability to do the desired job.

But above all, he must be able to understand your corporate culture, put himself at his client's level and establish a climate of trust.

In other word, a "partner" dedicated to your success.

Fourth, draft a contract.

To avoid unpleasant surprises, it is better to write a letter of engagement in which will be listed the missions entrusted, the means implemented by each party, the duration and the prices.

Finally, keep control.

Those who think outsourcing means giving up control are on the wrong track.

As in all areas, you must always remain attentive to the work of your subcontractor and keep control.

Indeed, even if the contract governs the practice, it does not cancel the responsibilities of the company.

But it also avoids certain errors, misunderstandings or frustrations.

Thus done, outsourcing becomes a much more advantageous practice than in-house management of the activities furthest from your areas of expertise.

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