IT Outsourcing

Top 10 Reasons to Outsource Development for Your IT Startup

There are two things startups need more than anything else: speed and control. Speed gets your product to market faster, and control lets you reap the benefits of your success.

But for startups, speed and control are tradeoffs. Building a product isn’t the only thing you’re responsible for — you also have to manage, market, and run your business. By becoming a jack of all trades, you lose time to market, and vice versa.

So, why do companies outsource?

Outsourcing software development lets you focus on growing your business while lowering your time to market. Your product remains in capable, trustworthy, professional hands, and you get to focus on running your business. It’s a key step to helping your business take off.

Here are 10 reasons why you should consider outsourcing your software development.

1. Lower Costs

Let’s not kid ourselves, a lot of people outsource just to cut costs.

And while it’s not the only reason, it does have its benefits. Outsourcing can reduce development costs by 70% compared to an in-house team. For startups, this could be the difference that gets your product to market.

Outsourcing keeps your overhead costs low while still letting you deliver a successful product.

2. Get Professional Service

The early days of outsourcing were a wild west of “here today, gone tomorrow” companies. Vendors would promise you a dedicated team, then reassign developers halfway through the project. Better yet, they might assign you a totally fresh developer with no real world experience.

Today’s outsourcing vendors are professional companies. They’re not just hired help, but business partners. You want a partner that wants to see you succeed. After all, it’s your business on the line, not theirs.

You want a vendor that understands and respects your needs. Why saddle yourself with a team that doesn’t care about you? Remember, the whole reason for outsourcing is to complete your project faster and cheaper than doing it in-house.

If you’re still not sure, ask a vendor about building a test project. This small-scale project lets you see not just how the vendor works, but the quality of their work. It will show you what you can expect from the relationship, the challenges you might face, and whether the vendor is a good fit.

3. Work with a Managed Team

With in-house employees, you need managers. Outsourced teams, on the other hand, do most of this work for you.

Sure, you still need in-house management to guide the project. But for day-to-day tasks, outsourced teams have their own managers. This is why a trustworthy vendor is important.

You want to be able to track progress without having to constantly ask for updates. Great vendors keep you up to date on the project’s progress and budget. This way, you can focus on the overall direction.

4. Get Your Time Back

The software industry moves fast. The sooner you can get your product to market, the better.

It’s tempting to build your project yourself. After all, it’s your project. But when building a business, time quickly becomes a limitation. Every second matters, and the more time you can free for yourself, the better.

By outsourcing development, you can focus on building your business and marketing your product. This gives you a huge head start over your competitors.

5. Spend Less Time on Support

Software is never just written once. It needs ongoing support and maintenance.

This also applies to outsourced software. That final deliverable needs someone to add features and fix bugs. Down the road, this means more development time.

This is why outsourcing is a long-term commitment. You need a team to maintain your product while you focus on attracting customers. Who better to take on this task than the people who made the product in the first place? You can focus on getting customer feedback and feature requests while your team focuses on improving the product.

6. Hire Globally

Hiring in-person developers is nice, but it has its challenges. Local developers may too rare, too expensive, or too underskilled. You might not have the office space or hardware to hire an in-person team. And the cost of hiring a full-time employee only for them to leave shortly after is incredibly expensive.

With the Internet, you now have access to a global talent pool.

You can easily hire developers all over the world, from India to Ukraine’s growing IT outsourcing industry. You’re free to choose the best team based on their skill set, work culture, and price. Real-time communications tools like Skype, Webex, and Slack make it easy to keep in touch no matter where your team is located.

You also want a provider that understands your business objectives and culture. The easier it is to talk to your provider, the smoother the project will go.

7. Incubate with Less Risk

Startup incubators are great, but they come with a cost. You usually have to relocate or give up some equity, which hurts when you’re still building your business.

By outsourcing, you get the benefit of incubators without the cost of relocating. Your “SWAT team” can still review your business and offer support despite you not having an in-house team. And as long as your business is on track, your investors will be happy.

8. Get Access to the Latest Tech

Quality outsourcing companies are on the cutting edge of technology. They know the latest languages, frameworks, and development tools. Best of all, they can recommend the best ones for your project.

Too many companies make the mistake of spending thousands of dollars on unnecessary software or training. Instead, hire a team that already has the tools, resources, and skills on-hand. This reduces your costs, overhead, and startup time.

Quality outsourcing companies pride themselves on staying up-to-date on market trends and development strategies. This helps deliver higher quality work to you faster.

9. Get Access to Experienced Developers

Outsourcing companies are here to build quality products quickly. To do this, they need quality developers.

The most reputable vendors have years of combined experience working with startups on successful projects. They understand what works and what doesn’t. Although each startup is different, experienced vendors can make recommendations specific to your needs.

Over time, your vendor will better understand your product and its requirements. Knowing its strengths and weaknesses means they can provide better recommendations. This could lead to cost savings, greater efficiency, better usability, or stronger security. As their developers grow, so does your product.

You should always learn about a vendor’s developers before hiring them. Reputable vendors will gladly book a 30 minute meeting with their top developers with no strings attached.

10. Gain Flexibility and Speed

At the end of the day, outsourcing is all about speed and flexibility. How quickly can you get your product to market, and how quickly can you adapt?

Of course, not all startups are the same. Outsourcing companies understand this, which is why they offer multiple options. For example, you might be able to save time and money by hiring a separate team for each of your projects. Or, if you plan on outsourcing long-term, you’ll likely benefit from a dedicated team that stays with you across projects. The choice is yours based on your specific needs.


Outsourcing is a growing industry, and as with any service, you need to shop around for the best deal.

Remember, no two companies are the same. To succeed as a startup, you need a team that’s fully aligned with your objectives and wants to see you succeed.


Leave a Reply

Your email address will not be published. Required fields are marked *