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9 Benefits of Outsourcing the Software Development of Your Startup

A few years ago, we asked ourselves – what do we enjoy most doing? The answer was almost obvious – engaging with new exciting projects. But what kind of projects? Startups! In the beginning, outsourcing sounds like something scary and unfamiliar to many but in reality -- a lot of companies do this pretty successfully. So why not be one of the success stories?

Bringing to life the idea that somebody had in their mind has to be pretty challenging without having technical experience. And here comes our extensive IT background. By outsourcing your software needs you can focus on business development by pitching your idea to potential investors, generating more leads, and selling your product of course. It is crucial to be supported in the early days to scale your startup faster.

As much as we like partnering with new brands, we are aware that they might not be familiar with all the positives that come from such kind of collaborative effort. There are many benefits on why a startup should back up their technological proposal with solid knowledge & experience in software development. Here are a few of them:

  1. Reduce cost – By choosing outsourcing you also choose not to invest in in-house IT resources. The cost of labor of skilled IT professionals can be pretty high. By lowering your hiring expenses, you will be able to better scale your startup.

  2. Newest Technology – Having access to deep knowledge and experience in the early stages of your startup is not an easy task. In-house staff is mostly top management at the beginning. Outsourcing your software development needs is a logical step where you can benefit from experienced technology partners.

  3. Improve customer value – While being the fresh new thing on the market that solves customer's issues with a more sophisticated solution - your competition is most probably already working on the same improvement. This is why you need to move fast and provide even more value to your customer. You being flexible as a small startup means that your outsourcing partner has to be equally flexible and innovative to help you on this value-driven journey.

  4. Give your customers high-end products at a lower price – As mentioned above: outsourcing will cost you less – and this will inevitably reflect on your products’ end price. To be price competitive when you are a startup is crucial for generating leads. So why not take this competitive advantage by contracting an IT business partner?

  5. Dedicated team for your project – Outsourcing IT-related tasks doesn’t mean that you won't have a dedicated team of software engineers. Quite the opposite. Whether your project requires 2 men team or 15 men team - these professionals will be highly involved in every step of your project.

  6. No need for micromanagement – More people = more problems. Agree? Managing your staff is a complex task, micromanaging is an even more detailed process. Well - by outsourcing your software you won't need to worry about any of this. Your IT partner is your point of contact and he will be responsible for delegating and overseeing development processes.

  7. Easy and fast scalability – The code produced by an external company is easily scalable because it is clean, bug-free, and understandable thanks to the documentation that goes with it. Whether you would like to further develop it on your own; hire IT consultants to oversee the computing or change your IT distributor - it will be an effortless transition.

  8. Scale down just as fast – No longer need a 12-member IT team? No problem! Your software partner will easily relocate their staff on another project.

  9. Focus on the important tasks – Having an incredible product and staying lucrative are two different things. As a startup, you probably have already attracted investors, but this is not enough. Actively searching for new business partners should be your number one goal to further develop your business. By outsourcing the software needs - you can completely focus on remaining profitable.

Writing from the perspective of almost 30 years experience in the IT industry – as we have been involved with dozens of VC, PE funding, and IPOs. The list above is a result of these unique experiences. We offer you our credibility as a technology risk mitigator. You can learn more about our individually crafted startup & incubator engagement package by sending your free inquiry.


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