Why Tech Startups Should Outsource Software Development

Many of us have unique business ideas, but when it comes to implementation, a number of challenges are right ahead. The same goes for technology startups where competition is high, failure is on the verge and predictability is unforeseen. A number of technology startups launch are launched everyday due to new markets, venture capital and accessible technologies. However, many of the startups fail (as high as 90% fail in the first year). The reasons are many but to name a few are lack of resources, lack of funding, ability to scale up the business, lack of expertise and not pitching the idea perfectly.

What is the solution, and how to be successful by adopting the right approach?

As a technology startup, you need to understand the power to outsource software development.

Why should you outsource software development? How you can successfully launch your business by outsourcing it to a software development company.

Have a look at the survey conducted by Deloitte stating how what and why companies outsource.

  • Of the respondents, 78% have successful outsourcing stories to tell and have a positive feeling about the relationships they have with their providers.
  • 72% of the respondents outsource at least some of their IT functions, including software development outsourcing

When asked about the reasons for outsourcing, find out the responses given by the companies.

  • 59% claim that outsourcing is more cost effective.
  • 57% say that, by outsourcing some functions, they are able to focus their resources on the core business goals.
  • 47% state that, especially with IT development outsourcing that is cloud-based, their capacity issues are resolved.
  • 31% say that customized IT solutions, in areas such as customer service, enhance revenue and retention.

Now let us have a walkthrough on how startups are made easy by outsourcing project to Software Development Company.


Agile and Resourceful Process Management

Process Management includes all the engineering activities utilized to manage product development in startups. Startups have to make sure that the business holds the ability to be flexible in order to harness the ever-changing market situations. For this reason, you have to adopt agile methodologies to face all the necessary changes in modifying the business approach.

By outsourcing your project to a software development company, you can quickly release your product with the gradual and iterative approach. Moreover, you can get your product developed in lesser time from idea conception to final product release.

The software development company will also help you identify the weak areas of the product. With the help of Minimum Viable Product, testing and modification process will identify the potential of a product, customers’ response, drawbacks and features that are missing.


Highly Driven Customer Involvement

Customers are the real benefactor of your product. Unbiased review and feedback by customers can help you make adjustments and bring improvements in the later version. As a startup, you will come up with many challenges.

For this reason, Software Development Company, which is well versed and experienced in offering the optimal solution, helps you optimize various aspects of your business. For instance, it can offer you web application and mobile app to deliver the ultimate solution that addresses the needs of your customers.

The architectural frameworks and practices offered by Software Development Company will help to align the difference between product and market uncertainty.


Startup without Resources, Nothing to Worry

You have a great idea and now you are stuck with the biggest question “how to manage things without capable resources”. The outsourcing to a Software Development Company is the right approach. Without worrying about how to manage resources, you are at the hands of the company. From ideation to final product launch, the company manages everything.

Moreover, the company can guide you to make improvements in certain areas to enhance viable strategy. This will help you utilize the best practices and effectively work on innovative products. In addition, the company will also help you to develop skills to eradicate any discrepancies in the resources.


Utilisation of Latest Technology Tools

A Software Development Company is equipped with latest technology tools that would help in successfully adapting product changes and management. As a startup, you don’t need to invest in latest technology tools to develop a product.

As a result, you can launch your startup business without incurring extra cost. Moreover, the software development company will offer well-tailored engineering activities, allowing you to develop workflows reactiveness and flexibility. The utilisation of latest technology tools will also give an edge over your competitors and allow you to be a market leader in near future.


Highly Specialised Service

Software Development Company will offer everything and anything to kick-start your business. Equipped with all the necessary resources, outsourcing your project is the right way to begin startup operation.

Without the need of developing skills, gain experience or consuming energy and time, you can place your trust in the company. Moreover, the company will offer you tailored products that would not only meet the current challenges but also fulfill the future challenges and create opportunities. The product will be delivered right before the time that will certainly meet your expectations and requirements.


Scaling Your Tech Startup

When it comes to a tech startup, scaling the business is important. However, scaling up the business without tools, resources and finance are impossible. This is where the software development company comes to rescue you.

For instance, the company would develop another MVP with improved features, add-on, and lesser bugs. The MVP will help them identify the discrepancies and know customers reaction. After testing the MVP, it is time to come up with the improved version of the product and launch it. Hence, the scaling up your tech startup is done effectively through outsourcing to the software development company.

Outsourcing your project to a software development company is the right approach, especially when you have no team, no skills, and no capital. However, outsourcing your tech startup to a software development company comes with many don’ts that need to be considered. Let us have a brief overview and move on to the conclusion.


Things to Consider while Outsourcing


Hidden Costs

Many of the startup entrepreneurs have raised concerns about the hidden cost that comes with outsourcing the project. To address this concern, make sure to have a good communication and talk to the company initially before hiring them. For instance, you can decide the extra cost, if something unusual happens or team has to spend extra time on delivering the project.

Moreover, you can avoid extra cost by planning ahead. You can sign the document, stating clearly about the goals, productivity and extra time that would result in extra cost. Do have a meet up with the team too frequently discuss the progress and problems.


When it comes to outsourcing your project, security is the main concern. You are somehow giving your trade secrets or business idea to the team of developers. What if you are left empty-handed and the idea is stolen without letting you know.

Make sure to hire the vendors who meet the certification requirements as per International Certifications for Data Privacy. Set terms, conditions beforehand, and make sure to get it signed by both the parties.

Selecting Wrong Vendor

Choosing the outsourced vendor wisely does not always mean to have the cheapest one. Make sure to analyze the experience, feedback and language and time barriers. Moreover, the vendor agrees to work on your schedule because you have to discuss the project from time to time.

If you are not comfortable with the vendor’s situation, you can opt out for a different one. There are a number of options available without any geographical constraints. Even if you are unsatisfied with the initial work, you can find another team at a lower price and high experience.


Should You Outsource Software Development?

When it comes to tech startups, nothing can outstand outsourcing. Moreover, in the world of globalisation, outsourcing is the right approach to handle any project. The benefits associated with outsource Software Development outnumber the deficits. Without any geographical constraints, you can hire the best resources from around the world.

Startups usually have to face a number of challenges when it comes to managing finance and hiring the best team. In addition, they lack resources and skills to deploy the final product. It is therefore ideal to outsource the project through reliable vendor and incur no extra cost. Before thinking about outsourcing your work, there are some questions you should ask yourself.

Regardless of the answers to these questions, it may be time to decide whether you can afford an in-house team or want to think about outsourcing your project.

About the Author


Ray Parker is an entrepreneur and internet marketer with over 9 years of experience in Search Engine Optimization, Creative Writer and Digital Marketing. He has worked with several clients from all over the globe to offer his services in various domains with a proven track record of success.
Find out more about @rayparker

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