11 Reasons Why Startups Should Outsource Software Development
Management, Technology21 June 2019
Outsource or not outsource your software development? That is a question!
Bill Gates started developing his first computer programs at the age of 13.
Steve Jobs became a billionaire within 2 decades of his life.
Abbey Fleck was only eight when an idea of the first microwavable bacon plate popped up in her head.
Yet, running a startup is not as easy as it might sound. One needs to get the best team of dedicated and goal-driven professionals to work for him in order to be among that 10 % of startups that usually become a success.
That is why new business owners face the necessity to make a decision of either to hire in-house employees or outsource the software development.
While many businesses believe that having a team of in-house developers is a safer way to get things done, we are convinced that outsourcing is your best choice, and here are 11 reasons why.
Why startups should outsource software development
1. It guarantees improved communication inside the team.
The fact that this team of developers has already worked together, means that once the project starts they will work harmoniously as one whole.
This mechanism has already been shaped and transformed into its best shape previously, so now it can focus simply on your tasks and not on building bridges and warming up, as it usually happens with the in-house teams.
2. No need to be a company’s HR manager.
According to the QZ, around 10% of funded startups fail to succeed due to hiring mistakes.
If you are not an HR wizard and do not really know what to look for in a developer you need for the company, then you are in for a big surprise: it is not easy to hire a real professional, the best fit and a great team player.
And relying on your gut only when choosing the candidate is not your best strategy.
Moreover, around 5% startup owners admit that failure was caused by a lack of experience of the employees.
When using the outsourced workforce, you avoid such troubles, as outsourcing studios have professional HR doing this part of the job.
3. It ensures full transparency of the development process.
If you are worried that you won’t be able to control the development process, then you … shouldn’t.
You get all the communication you need throughout development, as these studios are eager to create a product that will help them gain the trust of potential customers once it is finished and strengthen their presence on the market. And all this is only possible with proper communication available.
4. No warm-up time for the development team.
Every newcomer needs around 100 hours to get used to a new place, dive into the new corporate culture and make friends with co-workers. When you think about these figures, consider translating it all into money you will have to pay to employees while they adapt. And given that most startups have tight budgets, this issue is critical.
However, this time is not essential to a dedicated team of developers who have already been working together for a long time. Business owners save funds that would otherwise pay to employees that only familiarize themselves with the company and the team.
5. It is cost-efficient.
Mark Growth states that “46% of startups that fail do so because they run out of money” and almost a quarter of all new companies choose to outsource to save some money.
There is no need to pay more money to hire a professional from your region if you can get an employee with the same or even higher expertise level elsewhere.
There might be some inconvenience due to the language barrier or time differences, but if the company to work with is chosen wisely, no such issues will arise. That is why we recommend hiring professionals from countries like Ukraine.
6. A business owner gets to focus on his tasks.
Development of your product is important, but it is not the only thing one has to do when starting a new business.
7. Outsource teams are flexible.
Given that a person that works at an outsourcing studio gets to work on different projects all the time, using cutting-edge technologies and latest innovation to develop a flawless app, they are way more flexible and experienced than an in-house team you will gather.
One can be a developer for ten years, but as long as he worked on the same project throughout these years, his experience is not as valuable as that of a talented ninja hacking various projects at an outsourcing development company.
8. It brings immense experience and talent to the table.
According to the Young Entrepreneur Council, “There are countless other startups that have successfully built their products by leveraging outsourced teams. It makes a lot of sense: When you are starting out, it’s difficult to get people to quit their jobs and get on board.”
This is true: why would a Silicon Valley coding ninja quit his job to join a project that has no name yet?
But with outsourcing studios, you get immense talents to work on your ambitious ideas as long as they have business value.
No wonder that at least 89% of clients are satisfied with the final results outsourcing brought them.
9. It saves a business owner much time.
It is easier to develop an MVP (minimum valuable product) with an immense experience that outsourcing development studios have to offer.
They know how it is done, they have mastered so many different technologies, and are so determined to develop more great products to get access to new interesting apps that they do the job at a crazy pace.
Here at Crysberry, for instance, we only hire developers that have at least Middle or Senior levels of expertise in software development.
Besides, if you hire a Project Manager along with a team of developers, you won’t need to dedicate time to supervising the project at all. SImply communicate your ideas to the PM — and let him do the rest.
10. Penalties are on the outsourcing studio.
When hiring leading talents, you are always at risk that they will leave you as soon as they get a better offer. They don’t care whether it’s in the middle of a project or not. They simply leave you (it’s a free market after all).
However, those business owners that outsource development software can sleep well, as all the risks are covered by the outsourcing development studio. It is in their interest, to find a new perfect fit to get things done.
Thanks to this factor, giants like Slack and Skype came into being in their early days!
11. It prevents work interruption.
What if one developer you hired went on paternity while the other one got sick? The work will be simply stopped. You cannot move on; you are stuck.
But with companies like Crysberry, it is our responsibility to meet deadlines. So, we find a way to continue working so that all deadlines are met. It should not be your headache, but rather ours. And we know our ways around!
The question of whether one should outsource or not is open for many new businesses. We believe that the reasons above talk for themselves, and you should no longer have doubts about it.
And if you still do, contact us for a consultation. Let our professionals do what they do best — deliver fantastic result using their immense talent and the great experience.l.sidorenko