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Updated by MalcomRidgers on Sep 11, 2020
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How Software Development Outsourcing Can Aid Startups

Read more to find out how software development can benefit your startup.



Many startups have great ideas at the outset of product development, but not all are able to achieve their goals. Sometimes products stall, get delayed or even stuck in development hell and never see the light of day.

This is why startups should consider outsourcing services as a way to hire more developers, get a wider range of on-board talent and be able to get their products to market faster. Hiring software developers and finding the right talent for the job is no easy task, outsourcing development is an option that suits startups particularly well in this regard.

Startups are often strapped for resources and have an undersized pool of developers. Outsourcing helps find developers that can be used for key tasks that in-house teams may be lacking. They can specialize in specific development languages or tools that a startup’s internal team may not.

They can also be more experienced with platforms and operating systems not common within the company’s work environment or even market segment. This knowledge can be used for global product launches and the outsourced talent pool can bring experience to the table that may be lacking internally.

Another reason it makes more sense for startups, as compared to established companies, to consider outsourcing development is that established companies already may have large development teams on the payroll that can be tapped into. They may also have a lot of secrecy, which they do not want outsiders privy to and have established processes in place to move onto projects after one is completed. Startups are in a different situation at the outset.

Finally, there is a huge demand for top software development talent. It is often difficult for startups to compete with more established companies in finding the right talent for the task at hand. When outsourcing, the startup simply has more options and more of a development pool to work with.


The Decision to Hire In-House Developers vs. Outsourced Teams

The decision to develop a product or service entirely in-house, via both in-house and remote teams or entirely remotely using outsourced development is a choice that depends on a variety of factors. The main thing that startups should consider regarding this decision is the software being worked on.

The reason for this is that, while technology is a key proposition, it will often be very specific in instructional sets and require hands-on collaboration between the CEO, management, and developers. Internal and onsite meetings may be common and the vision has to be followed to the dot. Development nuances are few and far and remote teams would have a harder time being able to cope with this.

On the other hand, when a startup creates a product that solves other companies' business needs with a product or service, it should seriously consider outsourcing development to remote teams. There is more flexibility in finding the right solutions to consumer needs and flexibility what the final product will be like. Thus, remote teams can help solve these questions and release the product faster.

Another consideration for startups when choosing to either create software via local or remote teams is who is the product or service aimed at. If it is aimed at non-tech professionals or other coders, the more it makes sense for the startup to deploy outsourced developers for the task.

Other coders or tech companies will expect specific features and needs that the software or technology will fulfill. Thus, internal teams make more sense for this task as the working relationship between top management and developers will be easier to come by. Meetings can be done on the spot and face to face with code being analyzed constantly to fulfill market needs.

If the software or technology is aimed at business users, the general public or consumers, but not to a single user group, there is more flexibility, nuance, and creativity possible. The larger the pool of developers, the more talent available for the startup to call upon, the more interesting solutions may come about. The speed of development and productivity will also increase and the startup can get its name out there for investors quicker.

An outsourced talent pool of developers also makes a lot of sense when there are multiple ways of implementing or taking advantage of software or technology in question by its market audience. The less tech-focused and specific the consumer base is at its core, the more creativity and nuance can be applied to its development.


Consider the Software and Its Audience First and Foremost

Another factor to consider is if the startup has other products already under its belt and what its long-term plans are. A startup with a steady portfolio should definitely consider outsourcing at least some development talent. This way it can always have a development pool that can be put to use on-demand in updating already-released applications and to fill the development gaps between projects.

Finding the right solution for software development is never an easy task and takes a lot of fiddling and trial-and-error for startups to have the right teams or team on the payroll. There are various factors to consider, but the main thing is for the startup to figure out what group of customers the project they are working on is focused on and what type of a product, service or technology it is focusing its efforts on.