Why Should a Startup Outsource their Software Development


Mar 16, 2016


4 min read

To start your own company it is really not necessary that you should have a technical background, it is a challenge these days to find a technical co-founder for many companies or finding some good talent to turn a fantastic idea into a reality. This the reason, many founders or visionaries just stop ideating at this point and we believe that’s where they are making a huge mistake!

In B-Schools around the world mentors tell the first time founders:

“ Focus on your idea and let the things you’re not good at in the hands of the experts in this field. But be sure to be able to monitor the progress of their work.”

One very popular example of a company with non-technical co-founders:
Airbnb: Brian Chesky

Brian chesky earned a B.F.A in industrial design, from the Rhode Island School Of Design where he met Joe Gebbia who later became the co-founder at the firm and CHief Product Officer of Airbnb. As of March 2015, Airbnb had raised a new round of funding which brought the company’s valuation at around $20 billion dollars. As is evident both were non-technical founders and sure did outsource their software development work to concentrate on rather core operations of the company.

It is indeed a common opinion that having a good tech person in the company assures that a startup can have a successful exit. But, besides knowing how to code, founders should rather concentrate on other tasks like marketing and sales to excel in the industry.

To find out about the best practices of outsourcing your IT services.

We’ll give you some convincing reasons why a startup should outsource their IT resources development:

Reduced Cost

The stage when you have an idea in your head and money to bootstrap, you are able to find some professional engineers who you can contract per agreed price. In the case of outsourcing you do not need to dive into the pool of talent or even worry about additional expenses like: staff insurance, admin costs or payroll taxes. It is also a well known fact that sometimes by outsourcing the development work you might attract more skilled pros at a much lower rate.

Freed Up Time

By documenting the contracts of IT development, strict deadlines are already agreed upon and a lot of time is freed for founders to concentrate on more core areas. All you need to do is control those dates and monitor the work being done by individuals or by the agency. More core areas left to concentrate upon are to spread the word about your product in the market and promotions.

IT Consultation

While outsourcing your software development work, you get to meet people like business analysts, who might take a closer look at your product and suggest the best way to complete your task(better logics that were thought about before, approach, tools etc.). They might be able to add up an improvised revenue model to your existing project.

Testing Services Included

Hiring a team of software engineers might and expect them to deliver a robust software project as well as test it requires too much overheads and a lot of work for the same team. While outsourcing the same job to an agency ensures that project is delivered on time, works seamlessly and you do not have a headache of testing it ‘n’ number of times before a perfect product is delivered to you.

Technology partner for life

It is very difficult for a company to find a techie who understands your company’s objectives and goals , is reliable and dedicated. Having been in a contract with your firm for maintenance services, the outsourced firm has to be responsible for providing the software upgrades as and when required and the expertise you can trust.

Getting access to exclusive tools

Hiring engineers is not enough, but there is also a cost associated with providing your in-house team with appropriate tools, which by the way can be really expensive. Why would you buy such tools that you know, are going to be used once in the life-cycle of your software product. While outsourcing the project not only did you save the cost on not hiring engineers in-house but also got access to the best tools used in the IT industry to develop a software.

As we saw that not only did we save the cost by outsourcing our IT project, but hiring that extra engineer force and the cost overheads that came along with it were avoided. So it is clearly understandable that to be a successful founder of tech startup, we neither need to be technically equipped nor do we require the help of a technically sound co-founder. All that is required is the right idea and to transform it into a reality.