Proven Reasons to Try IT Outsourcing for Startups

Published on May 15, 2018
Proven Reasons to Try IT Outsourcing for Startups

So, you’ve already come up with the final vision of your tech product and feel ready to test it with a minimum viable product, a proof-of-concept or a prototype. Great, now it’s time to choose a software development team. The development stage might be a stress peak of your startup lifecycle, and it’s a good idea to acquire some extra assistance. While 72% of companies prefer software development outsourcing to in-house development, IT outsourcing for startups may sound a bit risky.

Startup runners usually consider outsourcing to be too ineffective and lead to low-quality products. If you are hesitant to let go of the idea of an in-house team, ask yourself a few questions. Are you sure that your in-house team will be more efficient and professional? Have you calculated and compared the budget required to maintain a whole team of software engineers instead of paying for their services only? In practice, IT outsourcing will help you eliminate a lot of headaches, reduce time-to-market and cut on investments.

Startup Outsourcing: To Be Or Not to Be

Prior to delegating your software development to a third-party, learn how to take the maximum advantage of it. As the outside team will become your remote IT department, we gathered five main points of why it’s a win-win strategy and the right move towards success.

It’s Cost-Effective

For startups, every penny saved is a penny earned. Outsourcing will help reduce your spendings on hiring, training, and arranging a workspace for in-house employees, as well as paying taxes for them and providing sick leaves and vacations.

  • You don’t have to create conditions for employees, as it’s the outsourcing provider that supplies them with all the necessary equipment.
  • You don’t have to stop the workflow and look for workarounds if any developer gets ill — it’s the provider who will take care of it and cover the missing part.
  • You don’t have to spend time and money on searching for new specialists if someone from your existing team decides to quit — the provider will take care of the staffing.

Newcomers usually need some time to warm up, get acquainted with each other, dive into the corporate atmosphere and culture – you know, simply get used to a new environment. Translate these hours into money saved by outsourcing, and the decision almost makes itself. And after you’ve done everything to please new employees, your new challenge is making them stay longer, usually with the help of social benefits and bonuses. Which means more money to spend.
Cooperation with offshore teams eliminates such issues, which might be critical in terms of a tight budget. Outsource, if you don’t want your business to fail like 46% of startups do because they run out of money.

It Gives Access to an Enormous Pool of Talents

Statistics show that around 10% of startups fail due to hiring mistakes. It’s not an easy task to find a competent professional who will also become a perfect match for your company. Turning to outsourcing not only eliminates this headache but also increases your chances of success.
Outsourcing vendors usually hire a professional recruiter to seek out skilled team players. This guarantees that the selected candidates will meet your specific project needs.

It Provides Flexibility

Startup outsourcing is also profitable as your company gets more flexibility in comparison to keeping teams in-house. With outsourcing, you have the option to scale your resources depending on project stage or duration. Additionally, you may adjust the technology stack or the cooperation model when it’s necessary.

It Eliminates Multitasking

It’s a usual practice for startup owners and managers to take over many responsibilities from recruiting to marketing. Outsourcing will help you concentrate on your key activity areas, decreasing the number of tasks you used to control simultaneously. Outsourced teams also have project managers and coordinators, who will be responsible for smooth project workflow.

It Ensures Quality and Professionalism

Outsourcing companies maintain high-quality standards. On top of that, developers working for an outsourcing company usually have more experience in different projects and use the leading and trusted as well as innovative technologies. And if you’re lucky, you may be able to hire an entire close-knit team that learned to work together in harmony during the previous project.

IT Outsourcing For Startups Is Not a New Practice

There are numerous startup outsourcing stories of success. Many famous companies and tech giants speak frankly about their cooperation with service providers. The majority of them chose to outsource at the early startup stages, but some of these corporations continue their relationships with outsourcing vendors to this day. Did you know that Skype, Slack, AppSumo, GitHub, Whatsapp and Basecamp turned to offshore talents for the development help? And look how successful they are today.

How to Choose a Decent Outsourcing Vendor?

How can you find reliable partners and build connections with remote teams? First, define your outsourcing goals, set proper requirements for specific and concrete tasks, and outline clear guidance to the end-result you wish to get. Then shortlist potential vendors according to your business needs, choosing only credible enterprises with positive feedback as well as high ratings on various marketplaces and directories.

We suggest you pay attention to Ukraine in this case. Based on multiple types of research, the Ukrainian IT industry is rapidly evolving. It also boasts being named the UK’s offshoring destination of the year at the 2017 Global Sourcing Association (GSA) awards ceremony in London. The country has a leading place in Europe and world markets by the number of certified IT professionals. This only means one thing: stop hesitating and choose an experienced, trusted and reliable software outsourcing partner in Ukraine to finally start bringing your boldest startup ideas to life!


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