What is the one business hack that Jeff Bezos, Tim Cook, Larry Page, and Mark Zuckerberg are doing that you are probably not doing?

Well, you guessed it: Outsourcing.

All the major companies have shifted their backend offices to other parts of the world.

Well…You might be thinking, “Hang on a sec! These are giant corporations we are talking about. They have unlimited resources. It is a lot easier for them to do it than me.”

Let me tell you a secret. It is not difficult to outsource.

In this post, I’ll walk you through a simple, step-by-step process that addresses all your questions about outsourcing, including:

• Why outsource?
• How can I outsource work to India
• How to implement successful outsourcing
• What is the cost of outsourcing?
• Pitfalls of Outsourcing & How to Avoid Them?
• FAQs
• What is to be outsourced and what shouldn’t be
• How to get started

Why Outsource? 

Let me ask you a simple question:
How important is money in fueling growth?

It’s very important.

Money saved is money earned. Money saved can be used to fuel growth.

Now let us consider two companies:

Company A and Company B are competitors in the same market.

Now,

Company A outsources non-core tasks. By doing this “A” saves a lot of money. They use this money to spend on advertising and growth, thus gaining a competitive edge over Company B.

As they say: Money saved is money earned.

I know that you may be thinking, “Arjun, saving money is great and all, but my number one priority is quality.”

Excellent question! Now let me put your mind at ease.

Outsourcing has come a long way since the 2000s. Setting up a remote team doesn’t mean that you have to sacrifice quality.

How can I outsource work to India

There’s more than one way to skin a cat!

Outsourcing happens predominantly in the following ways:

1. Outsource the complete work
2. Set up an offshore team
3. Hire freelancers

Option 1: Outsource the complete work 

Here’s how this works:

1. Initially, you find a qualified vendor.
2. Give them your requirements.
3. They will produce the final outcome.

For example, you can reach out to a qualified IT vendor, give them your requirements and ask for a software application to be developed.

Pros:
• No hassle

Cons:
• No control over quality.
• Difficult to find a reliable vendor.

Option 2: Hire freelancers

There are online sites where you can hire freelancers and outsource work to them.
Some of the popular ones are:
1. Upwork
2. Fiverr
3. Peopleperhour

Pros:
• You can find reliable freelancers who have good reviews.

Cons:
• Freelancers won’t work exclusively for you.
• They are not your permanent employees. You can’t train them to undertake more complex activities.

Option 3: Set up an offshore team  

Here you hire a remote employee who will work exclusively for you. The employee will report to work directly to you from an office space.

Pros:
• Will work exclusively for you.
• Better candidates to select from. Employees prefer the stability of a full-time job over freelancing gigs.
• You can select candidates from 1000’s of resumes.
• Employees will stay with you long term, therefore you can train them to carry out complex tasks.

Cons:
• The time that needs to be invested for training will be a little more, as the training will be done remotely.

How to implement successful outsourcing

Now, to the most important question. How do I get this right?

We believe, the most successful and profitable type of outsourcing is offshoring.

In this scenario, you set up a remote team.
You hire a remote employee who works full time for you and reports directly to you.

There are three main keys to success in hiring a remote employee:

• Recruiting
• Training
• Performance appraisal

Key 1 – How to select the right talent

If you ask me, “Hey Arjun, what is the single most important factor between successful offshoring and failure?”

I would say recruiting!

You are not in the market for cheap labor but for quality labor at a low cost.

In order to hire the best, you need a stringent recruiting process, in which only the cream of the crop makes it through to the final interview round.

Here is what we suggest:

We recommend four rounds of selection.

• Round 1: Test of written skills
• Round 2: Test of oral skills
• Round 3: Test of technical skills
• Round 4: Cultural compatibility

For successful offshoring, good communication is essential. A communication gap can be extremely frustrating to deal with. So, it’s best to avoid it.

Round 1 and Round 2 ensure that there will be no communication gap. These rounds are specifically designed to test a candidate’s command of English (written and oral).

Round 3 is the candidate’s technical assignment. In this round a candidate is given a task similar to the one that he will face on the job. When the task is complete you should review it so that you can make sure that the candidate is technically well equipped to perform the task to the required quality level.

Round 4 is an interview round. Only the candidates who cleared the previous three rounds make it to this round. Here you interview the candidate to see if he has the right mind set and that he fits in culturally.

It is very important that you don’t sacrifice quality. You need to be ultra-selective in your hiring. Don’t hire if you don’t find anyone suitable.

Key 2 – How to train 

You need to make sure that you have hired the right talent i.e. is a good cultural fit.

Keep an eye on the following during the first couple of weeks of training – 

• The employee has good communication skills.
• The employee understands your instructions clearly.
• Make sure all tasks & deadlines are mentioned in writing.
• The employee is professional & has good timekeeping. 

If the employee doesn’t have the above traits it is better to let him go & hire a different employee. Don’t waste your time on training a bad employee. Restart the search.

If the employee is a good cultural fit – it is worth investing in training the employee.

The training process can be slow but remember the more effort you put in at this stage the the greater the rewards will be later.

Here’s a great in-depth article on how to train.

I will summarize the key concept (however, I recommend you read the entire article)

Keep track of the “Task Maturity” aka the amount of experience the employee has in doing the assigned task. You want to be hands-on initially & hands-off as the employee gets better at the task.

What is the cost of outsourcing?

The cost of outsourcing depends on the type of job.

(A) For part-time work or small tasks:

Platforms like Fiverr, PeoplePerHour, and Upwork offer freelancers who charge by the hour, typically ranging from $8 to $20 per hour.

Alternatively, task-based pricing is often a better option. Here’s a breakdown of common tasks and their typical costs:

• Content Writing: $10 to $50 per article
• Video Editing: $15 to $50 for 30 seconds of edited video
• SEO (Link Building): $20 to $250
• Cold Calling: $50 for 75 calls
• Development – $20 to $50 per hour

Pros –

• Ideal for smaller tasks or roles requiring less than 20 hours a week.

Cons –

• Not recommended for full-time roles like customer service, sales, or software development. For these, I recommend the offshoring model, where you’ll get a dedicated employee working exclusively for you.
• No Data Privacy
• No Legal Liability

(B) Big tasks or full-time employees

Cost of offshoring with partners like GrowYourStaff (that’s us):
The major advantage here is transparent pricing.
Total cost = employee salary + compliance fee.

Our Compliance fee: $200 for part-time employees, $350 for full-time employees.

For example –  

• Customer service agent – $1100
• Compliance fee – $350 

Total cost per month – $1450 per month per employee.

Pros:

• The employee works full-time for you, aligned with your time zone, and is always available during work hours. Time-tracking software can be implemented, capturing a screenshot of the employee’s desktop every 10 minutes.
• Data protection is ensured.
• Employment contracts safeguard intellectual property (IP), and the employee is legally liable.
• No long-term commitments; payment is due at the end of the month.

Cons:

• Not ideal for tasks requiring less than 20 hours a week.
• Not recommended for one-time projects.

Pitfalls of Outsourcing & How to Avoid Them?

Objection 1: “It never seems like top talent, certainly not as good as local talent.”

Solution:
With platforms like Fiverr, PeoplePerHour, and Upwork, you’re limited to a smaller talent pool, and the review system can be manipulated.

With partners like GrowYourStaff (GYS), you access a broader pool of full-time professionals, not just freelancers. Most skilled workers prefer full-time roles, and GYS helps you tap into this higher-quality talent pool.

Objection 2: “When hiring locally, we conduct interviews and have control over the process. With offshore teams, it feels like we get whoever the partner sends us.”

Solution:
At GrowYourStaff, you maintain full control over the hiring process. We provide a list of pre-screened candidates along with their test scores. You decide who to interview and ultimately hire.

Objection 3: “What about data privacy and IP infringement?”

Solution:
Freelancing platforms like Fiverr, PeoplePerHour, and Upwork don’t offer data or IP protection.
GrowYourStaff provides 100% data and IP protection. Every employee signs a legally binding employment contract that safeguards your intellectual property and data. These contracts are fully enforceable under Indian law.

Objection 4: “Sorting through applicants can be overwhelming, and I don’t have time to sift through unqualified candidates.”

Solution:
We handle all the initial screening. From thousands of applicants, we conduct a series of tests and narrow it down to the top 5 most qualified candidates. You’ll only need to interview the best, saving you time and effort while ensuring high-quality hires.

FAQs?

1. Does outsourcing leading to job losses?

Outsourcing is no longer a luxury, it is a necessity. Most of your competitors are doing it. Market forces will soon make you do it. It’s a good time to start.

Old jobs in the US will disappear and new jobs will appear. For example the US outsourced manufacturing, but this led to the birth of the tech companies.
You can read more about the advantages and disadvantages of outsourcing here.

2. How is time tracked?

Our employees work 40 hours a week, with time-tracking software installed on their systems. The software takes random screenshots throughout the day, and a detailed time-tracking report is sent to you for review.

3. How is data and IP protected?

At GrowYourStaff, we offer full data and IP protection. Every employee signs legally binding contracts that safeguard your intellectual property and data.

4. How do you handle government regulations in India?

We take care of all tax, compliance, and labor law requirements, so you won’t need to deal with any government authorities in India. You will have no legal liability here.

5. What about cultural differences?

We offer training programs to bridge cultural gaps. After completing my education at Duke University (USA) and working at prestigious US-based companies, I developed a cultural training program designed to help align employees with your business’s cultural expectations.

6. Will employees work in my time zone?

Yes, employees will work in your time zone, ensuring full availability during your work hours.

7. Do you conduct background verification?

Yes, we perform comprehensive background checks, including:

• Education verification
• References from previous employers
• Location verification

8. Do you offer HR support?

Absolutely! Whether it’s sending a gift hamper for excellent performance or ordering pizza for an employee working extra hours, our HR team is available 24/7 to assist with all your needs.

What Should and Shouldn’t Be Outsourced

Roles Ideal for Outsourcing:

• Customer Support
• Data Entry
• Software Development
• Sales Development
• Financial Analysis
• Graphic Design

These roles often involve repetitive tasks, technical skills, or remote capabilities, making them cost-effective and efficient to outsource.

Roles Not Suitable for Outsourcing:

• C-Suite Executives
• Senior Managers
• Tax Consultants

These positions require a high level of strategic decision-making, leadership, or in-depth knowledge of local regulations, which is best handled in-house

How to get started?

We i.e Grow Your Staff are industry-leading experts in outsourcing. You can contact us to get started.