Why tech startups fail?

Startups succeed, but only a few of them.
Technology startups with the greatest innovations, newest ideas fail because of enormous pressure of market competition. According to Forbes, tech startups fail with a 90% failure rate just after 20 months after their last funding round. The reasons for such huge percentage are different: focus on R&D, marketing, and sales processes, but not on building efficient customer care strategy, attracting and retaining users. Some entrepreneurs try to try again and again, but they are still facing same problems..

Why Though ?

  1. Non-market relevance
    According to the report conducted by Fortune, 42% of startups said they failed because their product didn’t meet market needs and demands.
  2. Lack of experience and management
    More than 46% of tech startups fail because they are incompetent in questions of pricing, budgeting, sales revenue, customer support. Sometimes the “big idea” is not enough. Here we should talk about management skills. Project and personnel management, implementing business strategies and visions are also problem children.
  3. No core focus
    Tech startups fail because they strive to be on top, but they have no focus on the core services of their business. They do everything: R&D, marketing, sales, customer support. Or they just forget about some crucial services like customer support. What should they do to not to fail? Yes, outsource their services. The tech industry has never constituted more than 15% of the outsourcing market (banking, finance, and insurance accounted for 40%; telecom, 17%; and manufacturing, 12%), according to TechCrunch.

However, outsourcing is cherry picked by most companies today.

Here are 4 reasons why tech startup needs to outsource internal resources to not to fail.


We have already said a lot about it.

But we would like to remind and explain why time matters to tech startups. Techno process never stops. Every day we face new features in future times. Building an internal team will cost you lots of hours and will take multiple resources. Stop non-focusing on your core strategies and values and use an outsourced team to fix time-consuming processes.

Time may become your main enemy. It can force you to quit your business, but you should never stop.



Here we would like to talk about an in-house support. Most of tech startups are located in areas with a high cost of living and great market competition. Building an in-house team requires lots of technologies (phones, computers, CRM systems, real estate, etc.) and skilled employees. It seems to be really expensive. Outsourcing offers you various options for hiring customer support company from another country.

3.Flexibility and scalability

Struggling with R&D and sales process you’ll forget about your customers. It is well-known fact, that 82% of customers every year pass a company owing to improper customer support experience and stick to other services. Global outsourced services can provide you with agents who are present 24/7/365 for your users and build the loyalty of your business. Don’t you need satisfied customers?


You know, you are the best.

However, being in a startup requires special market expertise and day-to-day reports about your product and services. Most of startups fail because they are not experts in handling support issues. Outsourced customer support has expertise strategies, knowledge bases, and data entry tools.

To sum it all up, you need to know that running your own business is a great idea, but you should be aware of risks and mistakes of others on this road. To reduce the percentage of possible future failure consider outsourcing.

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