Outsource software development: Is this a clever idea for a startup?

Outsource software development: Is this a clever idea for a startup?

Are you facing the challenge of deciding whether or not to hire an outsourcing software company to boost your startup? Here are some key ideas to take into account.

Outsource software development: Is this a clever idea for a newborn business?

Let’s say you are the co-founder of a tech startup that is solving a specific problem and you have already investigated the topic in depth and are sure that the solution works. Now is the moment to BUILD it, so you start working on the Minimum Viable Product (MVP).

If you are not a tech expert, the most common approach is to look for someone who can be in charge of the development in exchange for a high percentage of your income, even when this means hiring some developers. On the other hand, if you are a tech expert, it can take you several months to develop your solution while you take care of every single detail of your business.

These are the two principal paths you can choose from when you are willing to develop your own product. In both scenarios, you will be devoting some time and effort to solve technical problems instead of focusing on making your business grow. Unless the product is purely technological (i.e., improving an algorithm), this does not make much sense.

Should you outsource software development then?

Outsource software development: Is this a clever idea for a newborn business?

This is the third option you have to solve your development needs efficiently. Outsourcing software development has helped many big startups to reach the top since software only represents the means to solve a problem. For instance, Rappi or Glovo (delivery apps well known in Latin America) solve problems related to logistics and distribution.

Why should their owners waste time and effort thinking about how to make their application instead of thinking about how to improve the distribution and their client service?

A startup can become very profitable in a short time, so it is important that you use that time working on your business model instead of worrying about the software. Focus on the WHAT and not so much on the HOW!

Content related: 6 reasons why outsourcing software is beneficial for startups

Why would you need outsourcing?

The main reason is that by hiring a third party to build the software, you no longer have to worry about the technology, like choosing the proper one or spending many days coding, testing, etc. Thanks to their expertise, they will know exactly what technology fits with your needs.

By having a technological partner taking care of these issues, you can concentrate on developing marketing strategies, finding investors, or coming up with new ideas to improve your solution. Making a business grow requires lots of time and effort.

Here are some key advantages of outsourcing software development that I’m sure you will notice in your startup:

Outsource software development: Is this a clever idea for a newborn business?

  1.  Reduction in infrastructure costs: Maintaining an appropriate infrastructure, such as equipment acquisition, servers, databases, licenses, electricity, etc., for the development and maintenance of the software is too costly. Outsourcing saves you from worrying about things that are not related to your core business.
  1.  Reduction in support areas: Another important expense along with software and hardware is the IT department. Staff hiring, training, and update of tools are the responsibility of the provider.
  1.  Rapid access to cutting-edge technology: Outsourcing allows small and medium-sized companies to develop solutions using the latest technologies that were mostly used by big enterprises, which reduces competitiveness both in terms of efficiency and investment.
  1.  Flexibility to grow: Finally, if things go well, you can increase the number of programmers by simply enabling more emails or users of the network.

Do not miss this: Why outsource software development and why it works!

Software provider is a strategic partner

When it comes to deciding which software company to go for, think long term. More often than not, companies hire freelancers or inexperienced software factories in order to save costs (at least that is what they think).

Outsource software development: Is this a clever idea for a newborn business?

You have to take into account that software is a vital part of your business, so making the right choice is key. On the other hand, if you constantly change the software provider, the resulting product might become a Frankenstein software.

This is another plus point: The software company you hire usually commits to you over the long-term. This will stop you from being a mere provider and become a true strategic business partner, who will not only be committed to the software development but to the success and growth of your startup.


If you need to develop your company’s software, you can save time and money by looking for a reliable software factory. Carefully investigate and analyze who your technical partner will be, but focus on the importance of your company’s core. After all, choosing the right outsourcing company is the most profitable alternative instead of wasting time deciding which technology or software architecture is the best to use.

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