6 reasons why outsourcing software is beneficial for startups

Are you beginning your own company and thinking why outsourcing software? Here are some facts that will help you to understand the benefits of hiring an offshore software development company if you live this situation.

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Did you know that applications such as Skype or Whatsapp in their early stages decided to outsource to an offshore software development company?

Like them, there are several more examples of successful companies that began as startups and did not feel apprehensive about making the decision to outsource in order to achieve their goals faster and more efficiently.

This might be helpful: What to consider before outsourcing a software product 

This article shows that many of the myths that claim that outsourcing is too dangerous for startups are false. Here, I want to highlight some facts that will help you to understand that hiring an offshore company for developing software can be a great opportunity for your company.

1. Boost productivity and gain more efficiency

A new business involves a lot of work and tasks to carry out. If you delegate software development to an offshore software development company, you get to focus on the important stuff, which is to get the startup off the ground.

Reasons why outsourcing software is beneficial for startups

Efficiency is increased when employees are not overwhelmed by too many tasks. In fact, according to recent CB Insight research that was based on an analysis of 101 startup failures, losing focus holds 13% of responsibility on why these businesses fail.

Outsourcing software for a startup means you can trust in the company’s experience to do the development while you take care of things like how to raise more funding, plan and shape your strategy, find a market fit, deal with legal issues, develop a marketing plan, hire new employees, and manage other tasks that are crucial for the business’s success.

That way, you ensure everything is getting done in the right manner so that it leads directly to higher levels of productivity.

2. Less money, more profit

Almost every startup has a limited budget in its beginnings, and one of the most used practices (and very inappropriate), consists of cutting costs as much as possible. Regarding this, the CB Insights report states that 29% of startups fail because they run out of cash.

Reasons why outsourcing software is beneficial for startups

Even though having an in-house software department might sound cheaper, by employing low-cost labor you are risking the hiring of inexperienced people, which may lead to higher costs in the mid-long term and the possibility of ending up with an unwanted outcome.

There are many doubts if a nearshore or offshore software development company could be much cheaper than having an in-house team. A study done by Deloitte showed that 59% of companies see outsourcing as a tool that helps them reduce costs, with this becoming the main reason to outsource.

3. Benefit from their experience

Working with an outsourcing company will give you access not only to great people but also to a lot of experience that will help to make your product better.

Outsourcing companies that have been in the market for many years have worked in diverse projects and a wide variety of industries, so they know how to do their job.  Because they have this experience, you can make profit from their capability to fully understand any needs and challenges and make sure that they will develop exactly what you need.

Reasons why outsourcing software is beneficial for startups

Read more: 5 keys to understand why to hire a generalist software company

Take into account that one of the most important benefits of this business relationship is that both parties can learn from each other while they exchange experiences and points of view. This will definitely help you to build a healthy outsourcing partnership.

4. Assess your project’s scope

Nobody knows more about how to become your business requirements in a piece of software than an outsourcing software company. They work day by day in these types of projects so they know best how to gauge the scope of your enterprise.

With your business vision, they can help you design your solution to make it the most adequate for you by considering the size of your organization, your target audience, the type of technology to be used, and they will figure out how the solution is going to advance in the future.

5. Time optimization

Working with an offshore software development company can help your startup save time in many ways. To begin with, unlike hiring an in-house team, the software corporation’s employees already know each other and how to work together.

When you employ new professionals, there is a lot of time invested while they get trained, introduce themselves, and adapt to the culture, atmosphere, and technology of your enterprise. You will definitely save time if you trust the recruiting process to the offshore company instead of undertaking it in your company from scratch.

Do not forget that if you focus on other tasks you will lose time with the development process. The outsourced company has vast experience in what they do, so they will do their job fast and effectively.

6. Improve quality and enhance innovation

Reasons why outsourcing software is beneficial for startups

A company dedicated to software is an expert who knows how to develop a solution adapted to your requirements.

What is more, the outsourcing organization is constantly training its people and have the know-how that will bring you the highest standards in software development thereby enhancing innovation and high quality.

Read more: 8 benefits of working with an offshore software development center

To Sum Up

Why outsourcing software is still a question in your head? It is time for startups to realize that outsourcing software is a great practice that can help their companies prosper.

Even though there are some beliefs which allege that teaming up with an offshore software development company puts the startup’s financial position at risk, we have clearly showed that there are many benefits to contracting software out of house that will lead to the business’s success.

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