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Scaling Strategy #35 | Outsourcing for Scale

by Sam Palazzolo
Jun 21, 2025
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Read Time: 4.5 Minutes

Let’s start the Outsourcing conversation with a reality check...

I was sitting in a strategy meeting a couple years, listening to a C-suite team debate (argue?) whether to outsource Customer Support. The CFO was pushing for cheaper labor. The CMO feared brand damage. The CEO was stuck in the middle, paralyzed by an outdated belief:

“Outsourcing means losing control.”

It doesn’t.

The companies that scale—really scale—aren’t outsourcing to cut cost. They’re outsourcing to unlock bandwidth, focus internal talent, and move faster.

McKinsey’s data backs it up: 87% of high-growth companies outsource to accelerate innovation, not just save money.

This isn’t about call centers anymore. It’s about Real Strategy. Real Results.

The ARC Model – Making Smarter Outsourcing Decisions

Outsourcing only works if you do it with intention. That’s why we built the ARC Model at Tip of the Spear Ventures. It’s our decision-making filter for what to offload—and when.

A — Assess Strategic Relevance

Does this activity directly support your competitive advantage? If yes, keep it in-house. If not, you’re holding it too tightly.

R — Rank Complexity & Repeatability

Can it be documented, templated, or trained fast? The more predictable the task, the better it fits for outsourcing.

C — Classify Contribution Potential

Ask: will outsourcing this unlock speed, cost savings, or innovation? If the answer’s yes, it’s not a cost-cutting play—it’s a scaling move.

It’s not about getting rid of work. It’s about getting serious about what deserves your internal team's focus.

Real World Example

A founder I work with was scaling fast—but her internal team was drowning. Sales reps were manually entering CRM data. Marketing was juggling content calendars and paid ad ops. Customer support was overwhelmed.

She knew she needed to free up bandwidth—but wasn’t sure what to cut loose.

We walked through the ARC Model.

→ CRM admin? Not strategic. Highly repeatable. Easy win.
→ Paid ads? Strategic performance driver. Keep that in-house (for now).
→ Support tickets? Offloaded to a partner with CX chops in 30 days. NPS went up.

Result? Her team finally had time to focus on growth—not grunt work. Revenue grew 28% the next quarter without a single internal hire.

Real Strategies. Real Results.

Outsourcing isn’t a budget line—it’s a strategic decision.

If you’re still running every function in-house because “it’s just easier,” you’re capping your growth.

If you’re outsourcing for cost only, you’re missing the point. Modern leaders use outsourcing to scale with precision—freeing up internal firepower to drive innovation, strategy, and market expansion.

Use the ARC Model. Run your ops through it. You’ll know exactly what to hand off, what to keep, and why.

Sam Palazzolo
Real Strategies. Real Results.

PS – Here’s how I can help right here/right now:

1 – Catalyst Audit – Identify if your growth plan is globally ready (and where it’s likely to break).
2 – Catalyst Board – Join an elite peer group navigating similar international scaling challenges.
3 – Catalyst Strategy Session – A focused 1:1 engagement to get your global expansion plan aligned and actionable.

Email me at [email protected] to find out more.

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