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Why startups should consider outsourcing to offshore software developers?

Have you ever questioned how a lot start-ups could launch their product(s) successfully in such a short amount of time? Apart from excellently executing their unique and brilliant idea, the answer lies in the fact that many of these start-ups have employed offshore software company with remote team of developers for their product development.

Why choose outsourcing?

In order to thrive and become successful in an increasingly competitive business world, start-up founders should devote their time and resources by focusing on the core business areas to accomplish their business goals as planned.  Instead, many founders have to deal with a lot of daily distractions, and some of which are out of the start-up core business operations. Furthermore, at the beginning stage of start-up, almost all organizations have limited resources related to funding as well as staffing. This lead to a problem of start-ups team taking on too many roles as a way to save cost and resources.

As a startup founder, you need to carefully assess the situation since taking on too many tasks can compromise quality. Besides, it is also a considerable challenge to hire qualified candidates in your business area. From advertising for open positions to training new recruits and giving time for employees to adapt to start-up culture as well as work process, it’s a long process and also expensive. More importantly, the quality of work provided by new hires will be the decisive factor affecting the success of start-up.

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Alternatively, start-ups can consider the option of outsourcing as this is a good way to connect with experts team that possess the technical knowledge as well as experience and skill sets for handling numerous of tasks while still maintaining the quality standards as required. Start-up can either hire outsourced personnel as augmented staff working together with their in-house team, or outsource all of their IT/software business needs.

With outsourcing, start-up can benefit from increased productivity as well as reduction in IT service and/or development cost. In this article, we examine some key aspects which influencing start-up decision for outsourcing their IT/software development needs:

1. Budget limitation

As mentioned above, many successful startups all started out the same as a small team with very limited budget. In order to getting noticed and secure funding from many VC fund, they first have to develop a product that can impress their targeted audiences. This is difficult to achieve when start-ups doesn’t have enough budget required to hire a team of full-time staffs of technical developers as well as sales and marketing professionals.

Employing developers from software outsourcing company provides you access to experienced technical talents without incurring the additional expenses of in-house hiring, including monthly salary, office rent, and equipment costs. In addition, when retaining developers from outsourcing company, start-up only have to hire developers for a definite period of time instead of having to employing such developers on a full-time basis. For example of a mobile app development project, if start-ups need a team of developers who are well-versed in one area of mobile development, they only have to retain the service of such outsourcing developers for the time it takes to complete the share of work required by them. This proves to be more cost-effective than hiring full-time developers and letting their skills go to waste after the work required by them is completed.

2. Product launching deadline

In addition to excellently executing their unique and brilliant idea, start-ups also need to execute it fast enough and get their product to market before competitors in order to capture the bigger market-share and also stay ahead of the competition. With startup accelerator and business incubator programs becoming more and more popular, it is now a common requirement for an organization to have a minimally viable product (MVP) ready in order to be eligible for the startup accelerator program.

For instance, a start-up might be required to complete their app development project in a short amount of time since they needed a minimally viable product (MVP) in order to secure funding. In this case, hiring a team of full-time developers might not be the best option as it would be costly and also time consuming. On the other hand, outsourcing company can provide start-ups with a high-level team of experienced mobile developers and Testers and QA engineers that helped them develop and roll out their first MVP meeting product launching deadline requirement.

Besides, outsourcing developers can also offer helpful advices to start-up regarding which product functionalities are really needed and those should can be incorporated in the later stage of development.

3. Scalability requirement

In order for any start-up to grow, they must be able to scale their product as well as the organization itself in order to serve the increasing demand from their target customers. Many start-ups will eventually face the scalability problems when the in-house team cannot keep up with the growing skill set and expertise needed for the growing product. Outsourcing vendor will be able to quickly provide start-ups with senior developer(s) on-demand, fulfilling the scalability requirement.

Having access to a dedicated team can provide tremendous benefits to start-ups as they can control the development costs, scale-up and expanding their team with time. Start-ups founders can then focus more on the core business operations as well as other important tasks such as management and innovation.

Start-up is an exciting challenge and outsourcing to offshore company can certainly be beneficial and would help speed up the time-to-market required of product.

Endnote:

Get in touch with us today to know more about our custom software development service, especially if you are start-ups and looking to hire outsourcing developers for your custom app development project, we can definitely help!