Top 10 Reasons Why Your Startup Should Outsource Software Product Development

Starting a business is no easy feat. It takes resilience to keep going despite the odds. We know this might surprise you, considering that there seems to be a new startup springing up every day. The sad reality is, the startups you see make up only 10% of all business ideas. 


This is because launching a startup involves several steps, and most new businesses cannot cope with the cost and level of professional skill required to get a business off the ground. Thankfully there's a solution – outsourcing software development. This article explains why your startup should outsource software development.  


Top Ten Reasons Why Your Startup Should Outsource Software Product Development 

Business owners have been battling with the question of whether or not to outsource software product development. It's even trickier when you're dealing with startup businesses. Some people argue that starting a business presupposes that you have all the resources to develop your own software product and that anyone who doesn't, has no business launching startup. Then, some feel that employing a dedicated team of in-house developers is the only way to keep your intellectual property safe. 


These points are valid, but they are not a strong enough argument against outsourcing software development. For one thing, most businesses only contact outsourcing companies when they desperately need a particular skill lacking in their in-house team. 


Most startup businesses are likely to employ at least a few in-house developers along the line when the company is on more sure footing.  Secondly, there are many things that you can do to ensure that your intellectual property is safe while you work with outsourcing companies. 


And if we're going to be completely honest, employing in-house developers is also not a 100% guarantee of safety. Now that I have dispelled the arguments against outsourcing, let's take a look at ten solid reasons why your startup should outsource software products development: 


1. Access to all the knowledge and experience you need 

If you're a business owner who has limited technical abilities, this is one of the primary reasons for outsourcing software development. There are many stages between having a great idea and seeing the manifestation of that idea in reality. It takes the technical skills and experience of a software developer to make your business idea come to life. It certainly makes a difference if you have some technical skill yourself; you'll know exactly what it will take to get your business going, plus you'll be able to tell whether the developers are on track or not. 


But don't worry if you have zero technical knowledge. By outsourcing software development, you can access developers who can handle every phase of the development process—including consulting, analytics, market research, design, and development. An outsourcing company will build a prototype of your product and then test it to see if it matches your specifications. They can even help you draw an appropriate project plan. Simply put, outsourcing companies are saviors of non-technical business owners.  


2. Access to the best global talents

Software development is in such high demand that there are very few if any unemployed developers. The best talent in the industry is happily employed, probably working on top projects. It'll take nothing short of a miracle to get them to come work on your small startup project. Thankfully, outsourcing companies have large databases of the best software developers across the globe. Now there's no need to be limited by geographical location. 


You may not be able to secure the top talents in your local area, but you have something even better – an opportunity to hire the best developers in the world. The most popular countries for outsourcing are India, Russia, Ukraine, Poland, and Argentina. These countries are known to have the sharpest brains for software development.  


3. Provides quality service at more affordable rates

When it comes to starting a business, the cost is the major rate-limiting factor. There are all kinds of bills and expenses to pay, capital to invest in the project, cost of setting up office space, and salaries to pay. But everyone knows that startup businesses usually don't have so much money. How can you ensure that you produce a quality product without breaking the bank? It's simple – outsource your software product development. 


To be clear, outsourcing isn't a cost-free alternative; but it's undoubtedly cheaper than employing in-house developers. The popular offshore development countries have lower costs of living, and therefore lower charging rates. If you outsource your entire project, you may not even need to set up office space. You'll agree that this is perfect for startup businesses.  

4. Access to all the professionals needed to get the project going

Building a complete product for your business requires more than just having a skilled developer. You also need professionals like DevOps engineers, business analysts, UI/UX designers, quality assurance engineers, and copywriters. That's quite a tall list of professionals. And as you probably know, hiring is a long process- it takes time and patience to find the right person. 


Even when you've found the right person, you need to give them time to warm up to the new role. If you want to get your product on the market quickly, there's no need to hire in-house employees. A better option is to contact an outsourcing company to hire all the professionals you need.  


5. No need to micromanage  

When you outsource your project to software developers, you're free from the responsibility of micromanaging your team. The software outsourcing company will assign a project manager to that effect. That person coordinates the team of developers and ensures that everyone is on the right track. It's their responsibility to take care of all matters related to product development, from the initial stages to the final launch. This creates room for the business owner to focus on other tasks.  

6. Better communication within the team  

Communication is vital to the success of any project. And when the team is made up of remote developers, the importance of effective communication skyrockets. In-house teams often struggle to find their footing regarding communication; it takes a while for team members to warm up to each other and develop genuine team spirit. 


By outsourcing your project, you can avoid the time-consuming task of team building. It's highly likely that the team of developers from an outsourcing company has already worked together on several projects. They understand each other, communicate better, and can work harmoniously as a unit.  


7. Easy scalability 

The thing about startup projects is that nothing is ever set in stone. As the project progresses, you may have to make changes that will require fewer or more hands. When this happens, you will need to scale your team by either adding more members or taking some off the project. 


Adding new team members is easy, but telling someone, they're off the project — that's the real challenge. It's worse with in-house teams because often, being excused from a project means dismissal. With outsourced teams, scalability is easier because there's no need to dismiss anyone. Usually, many projects go on simultaneously, so anyone who isn't needed for your project can be reassigned.  


8. Minimum risk 

Both in-house and outsource teams come with risks. But generally, the risk is lower when you choose to outsource. Why do I say this? Before you enter a partnership with a company to develop your business product, you can test their skills and capabilities. Start by signing them on for a small task. If you're happy with the outcome, you can give them a larger task, and if that works, you know your project will be in safe hands. On the other hand, there's no surefire way to see what you're getting with an in-house team before you commit. 


9. Maximum flexibility 

Outsourced teams are far more flexible than in-house teams. Outsourced developers have years of experience working on a wide variety of projects. They have to continually refresh their skills and be familiar with cutting-edge technology to meet the demands of all their clients. 


Apart from this, outsourced developers understand that a client's requirements may change during the project. They're prepared for this, and they make plans to accommodate any changes. In-house developers don’t have as much flexibility. Often, they stay in one company for years, working on the same product. They're unlikely to do anything extra or work beyond the official working times. 


10. No need to worry about HR 

Any business that does well has the right employees. This goes to show how important the hiring process is. If you're a startup, you probably can't afford to hire an HR manager just yet, so you're likely to handle the recruitment process yourself. If you don't have any HR experience, you'll struggle to recognize the right candidate. To avoid all this trouble, you can use an outsourcing company; they have trained HR personnel to handle the recruitment process. 



After reading these ten points, I hope you’re convinced that outsourcing software development is the best choice for startup businesses. Apart from being cost-effective, there are several other reasons why business owners should consider outsourcing. Thanks for reading this article. Before you leave, please drop a comment in the section below. 

We hope you found this article useful. Here at Cloud Employee, we assist companies looking to hire dedicated offshore developers across many technologies. Talk to us, learn more how Cloud Employee works, or see our Developer Pricing Guide.

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