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Focus on your core business. Do not spend time doing projects which take you away from growing your core business, jobs you dislike or even are not good at. By outsourcing you get to focus on your business, while they complete the project, you have been dreading for months. Time is money!
Reduce staff costs. When you outsource you do not have to deal with tax laws, desks and office space, superannuation, sick and vacation pay. You also have the benefit of hiring someone for a short term project that otherwise may be too expensive for a fulltime basis.
Increase flexibility. Have the flexibility to decide how long you need your remote developer(s) for, what hours and days the work. You can attract the whole team for specializing projects which are selected especially to meet your requirements.
Control capital costs. Cost-cutting may not be the only reason to outsource, but for startup companies with their limited budget it is certainly a major factor.
Start new projects quickly. Handling the same project in-house might involve taking weeks or months to hire the right people, train them and provide the support they need. And if the project requires the capital investment the start up process can be even more difficult.
Increase efficiency. By utilizing the existing infrastructure of an external provider you get the economies of scale which can increase your efficiencies and give your business an important competitive advantage. You also get the knowledge and skill set of a professional.