5 Reasons why Start-ups should outsource their product development

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Why Start-ups should outsource their product development

Most of the start-ups begin their journey in garage just like Apple. Many of them bootstrap to get started i.e. the founder/ entrepreneur becomes the first investor of the start-up. Boot strapping means building the start-up with little money. But then start-up is about passion, finding an interesting solution to a challenging problem. Today start-ups are not anymore just a buzzword. They are an integral part of the IT Eco-system. The most difficult time of a start-up is during its initial stages. Aspirations to grow bigger and better shouldn’t deter start-ups from its end goals.

Thus most start-ups prefer to outsource and seek external expertise. Outsourcing is a boon for budget constrained and infrastructure less start-ups. Many of the start-ups have been up and running just like any other firm without too much hiring or having a bigger workspace. Start-ups do not have ground rules when they begin. They wish to experiment and be completely flexible in their business model. And then sometimes the founders of bootstrapped start-ups are not in a position to quit their full-time jobs.  It can be become very complex to manage a full-time job and focus when launching a start-up. This is where outsourcing helps to a greater extent.

Now let us tell you about the Top five reasons that make outsourcing development essential for start-ups.

#1.  Outsourcing development: A cost effective option

Most of the start-ups in their initial stages struggle to establish. They need a team of developers who can get the product/services up and running. Then affordability becomes a big question mark while establishing.  90% of the start-ups outsource development with flexible engagement models. The cost of development can be drastically reduced in such models.

Further outsourcing development can be of immense help when start-ups are on stealth mode.

#2. Time is Money: Go Agile and be quick

Start-up founders might be terrific developers. In pursuit of coding happiness, they are tempted to do the development themselves.  But as the founder of start-up, they must precisely invest their time to network, analyse market, and harness relationships with prospective investors.  Doing so many things at once can be a recipe for disaster.  By outsourcing development, start-ups can keep both development and marketing tracks running at the same pace. 

#3. Scalable Infrastructure and exclusive Talent

When start-ups outsource development, they will not have to worry about the state-of-the-art infrastructure and required expertise. Most of the off-shore development centres have very good access to multiple frameworks and development tools.  And few customers wish to have an additional feature or slight enhancement. The off-shore development can quickly iterate the source code development and bring in the expected results without much additional costs.  Peace of Mind!! Start-ups can make use of the infrastructure and talent to get things done.

#4.Quick Consulting: Boosting Start-up ideas

With the right outsourcing partner, the start-ups can realize a wealth of benefits.  Always choose an outsourcing partner with track record of successful projects. They will possess sound knowledge of technology, cross-platform solutions, and tools.  Start-ups can tap into expert’s knowledge and capture multiple segments of the market. Work together on Market strategy and further enhance the product.

#5. Outsourcing Partner: First line of Marketing

Start-ups outsourcing partner will know the value of product/services and the benefits it can offer. Perhaps they will know better than anybody else. It is obvious that the outsourcing partner will have a huge list of clients.  It will not take much time to get the first customer, if the product/services are recommended by the development partner himself. It is Time to sell.

With right level of SLA’s and flexible engagement models, start-ups and outsourcing partners can have a mutual win-win situation.

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