Scaling Smart: Unlocking Startup Growth with Outsourcing

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May 8, 2025

Outsourcing has long been associated with cost-cutting and offshore call centers - but that view is outdated and dangerously limiting for modern startups. In this week’s podcast episode, I spoke with Shaun Walker, CEO of Spoke, about how business process outsourcing (BPO) is evolving and how founders can use it as a powerful tool to build operational leverage.

What became clear in our conversation is this: outsourcing isn't just about saving money - it's about accelerating growth. And if you’re not thinking about it as part of your scaling playbook, you’re likely missing a huge opportunity.

Why Outsourcing Is Still Underutilized by Startups

Despite its benefits, most early-stage companies still don’t leverage outsourcing effectively. The reason? It’s hard to know when and how it fits. Unlike dev shops or marketing agencies that slot into obvious functions, BPO can support nearly every part of a company, which paradoxically makes it harder to act on.

Shaun explained how startups can navigate this by starting small - one or two roles in non-core areas - and scaling up as needed. Whether it’s customer support, finance, HR, or recruiting, outsourcing offers a “bionic” way to extend your team’s capabilities without building out the entire function internally.

More Than Cost Savings, It’s a Strategic Advantage

Yes, outsourcing saves money. But focusing only on the cost differential misses the bigger picture. Shaun made a compelling case for how outsourcing can actually be a competitive advantage:

  • Access to top-tier global talent in less saturated markets
  • Faster hiring cycles that don’t rely solely on internal recruiters
  • Flexibility to scale up or down with fewer fixed costs
  • Culture-forward embedded teams, not nameless contractors

The key difference with Spoke’s model? It’s deeply integrated. Team members aren’t floating freelancers — they operate as extensions of your startup, aligned with your mission, goals, and culture.

Where Outsourcing Works — And Where It Doesn’t

Not every role is a fit for outsourcing. If you’re a deep-tech startup, your core product or R&D leadership should likely stay in-house. But supporting functions like accounting, customer service, QA, and recruiting are ideal candidates.

That said, outsourcing is not a silver bullet. As Shaun noted, when founders treat outsourcing as a “set it and forget it” tactic, it tends to fail. Success depends on having:

  • Clear role definitions
  • Strong internal ownership
  • Willingness to invest in culture and communication

If you’re not willing to treat outsourced team members as true teammates, it’s probably not the right time.

AI and the Future of Outsourcing

One of the most exciting ideas from our conversation was how AI may actually increase outsourcing adoption. As automation handles repetitive tasks, it elevates the need for skilled oversight, data interpretation, and operational support — all of which are great fits for global teams.

Startups that pair AI with smart outsourcing strategies will move faster, hire more efficiently, and build more scalable operations than those that don't.

Final Takeaway: It’s Time to Reframe Outsourcing

At Interplay, we work with founders every day who are navigating how to scale smartly. If you’re at that Series A/B inflection point, or if you’re trying to stretch your runway and avoid overbuilding internally, outsourcing deserves serious consideration.

This isn’t about hiring cheap talent. It’s about building a resilient, agile company that can grow without breaking.

FAQs

Q: What’s the #1 reason startups outsource today?
A: It’s a mix of cost savings and the ability to scale quickly with high-quality global talent.

Q: What roles are best suited for outsourcing?
A: Support functions like customer service, finance, HR, recruiting, QA, and non-core engineering.

Q: Will outsourcing hurt my team culture?
A: Not if you choose a partner like Spoke that focuses on embedded, people-first team structures.

Q: How early should I consider outsourcing?
A: As early as your Series A. The earlier you build it into your strategy, the more leverage you’ll have.