Today, outsourcing software development has become the new norm. Software outsourcing development is the most acceptable option to produce a remarkable product if your internal software development team is overburdened. You can attain larger economies of scale thanks to it. Additionally, you may concentrate on your core competencies without investing much time or money.

Software outsourcing, in its basic form, refers to a business’s decision to contract with a third-party software development service provider to complete work that can be completed within. However, in-house app development costs money and takes time. And let’s admit it, not everyone employs a large software development team. In these circumstances, IT firms involve virtual workers in their projects.

Tech entrepreneurs are filled with uncertainties and concerns despite companies seeking to outsource software development. We’ll demonstrate the value of software development outsourcing for tech startup entrepreneurs in this blog. So without further delay, let’s begin.

Factors for Startups to Outsource

 High-caliber talent is costly. Annual compensation for a software engineer might range from $50,000 to $150,000 plus benefits. Due to the inherent risk of working for a startup business, startups struggle to find and retain experienced developers.

Their total compensation package might not be as attractive as what well-known businesses offer. Adding more developers also requires giving them a workspace, equipment, software licensing, and training. A corporation invests, on average, $4,000 in each new position.

The cost of creating a new software product is drastically decreased by outsourcing labor. The business is not obligated to pay the additional price for a larger workspace, cover sick time, or cover benefits. In general, outsourcing labor is less expensive. International outsourcing firms for software development offer significant labor cost benefits.

Popular offshore outsourcing destinations include Argentina, Mexico, Pakistan, India, and the Philippines. Nearshore alternatives can still offer significant discounts if time zone or linguistic limitations are a concern.

Startups may have serious doubts about their capacity to scale the product effectively. Investors are looking for software products that can perform well and expand to meet rising consumer expectations. The product might experience significant software instability and downtime if it wasn’t designed with capacity upgrades.

The market can be very turbulent as a result of social media and social media marketing. Without prior notice, a startup’s user base can suddenly increase dramatically. A crucial design element is the ability to swiftly and efficiently upgrade and modify the program.

Outsourced development teams can modify their labor requirements if the initial product’s scope expands or contracts. The software development service provider has a massive pool of developers available to join a project, so they can swiftly add fresh engineers to the team.

Startups’ internal teams may lack experience in product management and development lifecycles compared to companies who specialize in supplying them with outsourced software development. They will not be making their debut. These businesses have experience working with a range of customers and know how to assess the particular requirements of the startup.

Providers of outsourcing services for software development will have access to a team of qualified product managers, project managers, DevOps engineers, and others. This knowledge will help direct the program’s development away from potential slopes and keep it on track.

Startups ought to have enough money to hire their management team, but they might prefer to put more emphasis on other things like client involvement and connections. Outside product and project managers will act in the startup’s best interests. The terms specified in the startup’s contract bind them. They also serve as the initial point of contact for teams from the inside and outside.

The parties involved in the design and outline of all anticipated features and technologies needed for a project at the start of the software development life cycle. Outsourcing is a brilliant option if this involves any expertise that the internal development team cannot deliver. An expert may manage that component rather than having the internal team struggle to learn new technologies.

The startup’s objectives may modify as the project evolves. After all, both companies and their customers are constantly growing. A software development firm can easily choose from their existing staff or outsource this job if a new skill becomes urgently necessary halfway through the project.

Finding expertise is challenging, but the time investment is also an obstacle. Finding the ideal applicant for a permanent post can take some time when recruiters are filling a highly technical position. Typically, a startup seeks to hire someone that fits with the team, fits within their budget, and has the needed skills. From the time of the interview through the onboarding, this procedure can occasionally take months.

Outsourcing software development enables the business to omit this step entirely. Because the outsourcing agency will supply all the urgently required talent, recruiters can take their time selecting the best candidates for permanent roles. These businesses have already screened their developers and are aware of the value they can add, allowing them to select the most qualified candidate for the job.

Outsourcing: A Popular and Practical Approach

Since you don’t need to rent office space, build up an entire development infrastructure, and hire a qualified crew, outsourcing is quicker than in-house development. What further justifications exist for startups to outsource their software development?

WhatsApp, the most widely used messaging platform, outsourced the development of its products, and it is currently valued at over $19.6 billion. With over 70 million developers using its version control and code management platform, GitHub is a titan in the software development industry. Scott Chacon, chief information officer of GitHub, founded the business in its early stages by freelancing, creating the Gist backend. Other businesses that notably benefited from adopting software development outsourcing during their lean startup phases include Slack, UpWork, Alibaba, Opera, and MySQL.

Startups should actively consider outsourcing software development because the advantages outweigh the disadvantages by a wide margin. The startup will need to foster open communication between the internal and external teams and create a positive working environment for both.

Creativity and planning are the initial steps after recruiting a development team from an outside source. The outsourced development team will start creating the software’s structure, and layout after the brainstorming stage is finished. The group will then start developing and testing the program. The startup may retain the outsourced workforce part-time after finishing the product to work on deployment and maintenance issues.


 By Khawaja Haroon Nazim | Jan 5th, 2022