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5 Reasons Why Startups Outsource Software Development

Vladimir Liulka

December 15, 2016

It’s a well-known fact that many startup founders don’t have a technical background and they very often have a difficult task to choose a technical co-founder or to employ reliable technical talent to build a successful business.Experienced mentors always give advice to focus on what they are good at and hand the things they are not good at over to other experts in this field.

Several really successful startups started without having a technical co-founder on board. It’s a fact, it is indeed a common opinion that having a good tech person at the outset assures a startup to complete a successful business or a successful exit. However, besides knowing how to create good code, an owner has to be a good marketing and sales person, HR and finance as well. Performing all roles at once with limited budget and strict deadlines – It is possible, but not recommended.

Here are the five reasons for startups to outsource IT services:

1. Reduced Costs: At the stage of having a brilliant idea only, you are able to find a team of professional engineers who you can contract per agreed price / rate. In this case you do not have to worry about additional expenses, like: staff insurance, payroll taxes, admin costs. Moreover, it is a well-known fact that sometimes more skilled pros can be attracted at a much lower rate through an outsource model.

2. Freed up Time: By giving away software development tasks, a lot of time is freed up. Deadlines are usually strictly documented in the services contract. So, all you need to do is to control those dates. In this case you will be able to concentrate on marketing and promotion, leaving software development and testing professionals.

3. IT Consultation: When outsourcing IT services, you will get an immediate access to the world of system and business analysts, who can take a closer look at your case and suggest the best way (logic, approach, tools, programming language) to complete your task. They are able to innovate and improvise, offering the best practices only.

4. Testing Services Included: Avoiding testing stage in the software development process is like publishing the magazine without prior look at the initial draft of it. In this way – you can ensure the high quality of your ending product (it will be properly tested) and convince yourself that it will not suffer from technical mistakes (bugs).

5. Technology Partner for Life: It is very difficult to find a suitable employee, the one who understands your company goals and values, is reliable and dedicated. The same works with an IT outsourcing company. Having found the right match in outsourcing – you get the added value – the company with sufficient expertise who you can trust.