Software Product Development Outsourcing Services for Startups

Today, many startups have become incredibly successful and transforming the economy and various industries in a highly innovative way. However, the number of startups that have come to realize their full potential and turn profitable is in the minority.

Most of the startups usually fail and it’s due to a myriad of reasons. Allocating funds and manage capital requirements while working on a shoestring budget are some of the common challenges that startups face at the beginning stages of business.

Thus, outsourcing their software product development could be a great solution for startups to start launching their product into the market at a budget cost, and within a reasonable timeframe.

For startups, with in-house development, the time from initiating ideas to turning them into a real-life product could be much longer, since the entire process also involves setting up offices and equipment, as well as hiring the right team of software engineers.

Besides, the cost of in-house product development will steadily increase with time and can significantly affect the startup’s capital requirements and its starting position.

While software outsourcing does not take away the requirement of capital investment, it could be a much more cost-effective solution for start-ups.

In addition to software development, payrolls, legal services, accounting, and a range of other secondary administrative tasks can also be outsourced to help save time and allocate resources on the core activities for the growth and development of startups.

Partnership Between Startups and Software Development Company

According to Wikipedia, startup is a business organization founded by individuals or entrepreneurs to search for a repeatable and scalable business model. Many startups have greatly impacted, disrupted, and transformed the economy.

For example, the sharing business models of Airbnb and Uber have completely changed the way we live our everyday lives, and in a better way.

However, the startup failure rate is still extremely high (around 90% - according to the latest 2019 figures by which means there are a lot of risks and uncertainties involved in running a start-up.

Thus, startup founders should constantly seek new initiatives to minimize risks and achieve a more sustainable business.

Among the reasons leading to startup failure is due to poor technical development and execution of their product. In the initial stages, many startups facing the obstacles of hiring the right  CTO or Director of Engineering candidates.


Additionally, as first-time business owners, startup founders who are not in the IT industry or with no technical experience may find it challenging to find the best candidates for those technical positions.

In many cases, startups that looking to raise funds will need an MVP (minimum viable product) fast to validate their ideas and testing the market as well as pitching to investors.

And on the other hand, some startups would need to rebuild and improve their product due to the lack of technical expertise of existing in-house development teams. Hence, many startups have turned to software development outsourcing for assistance with these various technical implementation requirements.

By choosing a reliable software development outsourcing partner who understands and is experienced with the start-up world, startups will be able to build innovative products ready for pitching.

Once startups found a qualified software outsourcing vendor for their requirements, they will be able to get their project off the ground and put everything to work.

Many technical challenges and processes can easily be resolved and improved upon, ensuring the fast launching of key products.

Here are the reasons why startups should outsource their software development activities:

#1 Fair view of key product through Third-party evaluation

As mentioned previously, startups sometimes need to rebuild or enhance their products for a better market fit as well as providing a better experience to their customers.

This is because most of the time the first product that startup releases into the market just simply does not match the market need.

Best-case scenarios, founders and the in-house development team of startups will need to revisit their ideas and products several times to get it right.

In the worse cases, the product will be completely off base, and complete rebuilding is required. And if that is such a case, it’s a clear indication that the in-house development team didn’t do the necessary works required to validate their ideas.

Through outsourcing, startups can get access to a neutral view in order to assess their ideas and code audits for improvement, including the incorporation of new features, or rebuilding of products if such fixes aren’t enough.

#2 Enhance startup capacities

When a software development outsourcing company comes into the picture, startup founders have already outsourced the task of obtaining all the necessary IT resources requirements, avoiding the potential loss of organizational structure and planning.

Additionally, the outsourcing team can also work alongside with in-house team as an extension of capacity. Based on hands-on experience, the IT outsourcing company can transfer knowledge, skills and guide the startups' team to develop new strategies on technologies to enhance performance and success.

Here, the startups team will be able to learn and apply the newest best practices as well as technologies into the development process, preparing for future technical roles and challenges.

#3 Agile methodology for product development

The startup world is constantly changing and evolving, requiring founders having to innovate themselves and be flexible enough to accommodate all the uncertainties and frequent changes in the marketplace. As a result, founders usually should consider agile methodologies as a viable process for their development projects.

With software outsourcing, startups will be benefited from fast release along with an incremental and iterative approach, at the same time ensuring thorough and frequent testing for error-free products.


#4 Market and Industry insights

Software development outsourcing provides startups with all the necessary IT resources (e.g. hardware, software, tools, etc.) and expertise for operations without requiring startup founders to invest and spend their valuable time establishing the whole IT infrastructure. This is one of the compelling reasons why a startup should outsource its technical development.

When startups building a highly specialized tech product, not only developers’ skills and experience are required, but industry insights also become considerably essential for successful startups operations.

Here, the software development company can effectively help startup founders quickly addressing the development challenges by consulting and offering solutions for potential challenges and industry insights for the product market.

#5 Ability to quickly scale-up

Not only the software development company hired by founders will be able to provide professional IT services to their startups during the Minimum Viable Product (MVP) development or software prototyping stage, but outsourcing vendors will also involve in supporting startups transitioning into later stages of a startup, especially during scaling phase with product innovations and improvement.

With easy and quick access to a large pool of talented developers, software development outsourcing companies are definitely well-equipped with adequate resources and knowledge for scaling up for business growth.

Kicking off the startup project sooner

By outsourcing to a custom software development company, startups founders can take advantage of various benefits provided and kick off their projects in the fastest way.

Moreover, with software outsourcing, startups founders can save a lot of time in interviewing and hiring a Chief Technology Officer (CTO), or Director of software engineering, as well as spending less time to find a suitable software developers team.

Besides, for startup projects with an ambitious timeframe, being able to kick off the project earlier enables startups to launch their products into the market faster, gaining bigger market share advantages. 


Founding and running a startup could be an extremely exciting yet highly challenging endeavor. Employing the services provided by software development outsourcing vendors will allow startups to have better technical execution, ensuring product quality is ready for pitching and fund-raising.


TP&P Technology is a leading software development company in Vietnam and we have helped many startups and small-medium businesses to build products from scratch.

We provide startups and other small businesses the customized IT resources they need for technical implementation and bring a better understanding of the costs of development.

At TP&P Technology, we can work together with startups to build custom applications for product-market fit, including mobile and/or web solutions, blockchain-based applications, or applications incorporating AI/machine learning technologies.

We understand the startup culture and can help suggest solutions for your organization’s technical problems. Get in touch with us today and start transforming your startup ideas into a real-life products.