Business & Finance

Should a Startup Outsource Software Development?

Should a Startup Outsource Software Development?

If you want to develop software but have no technical knowledge or skills to do the same, you can create an in-house development team or outsource the task. Many people consider hiring in-house developers a better and safer option. After all, you can direct the team and control the product development according to your plan. However, it is partially true. Outsourcing is more beneficial as it spares you time, effort, and money. Moreover, you can focus more on product marketing and other important pending work.

13 Reasons Why Startups Should Outsource Software Development

Outsourcing is ideal for entrepreneurs establishing their organizations from the scratch and trying to make their ideas happen in real. Apart from saving your time, effort, and money, outsourcing is beneficial in many other ways. Let’s discuss why your startup should go for it!

1. An Affordable Solution

According to CB Insights, 38% of startups fail due to financial insufficiency. Hence, cost-saving is a significant factor in outsourcing software development. The hourly cost of developers and the software development’s duration can make a considerable amount. Thus, you must find the best hourly rate of developers while selecting a development model.

Developers in affluent nations such as North America and Australia charge between $150 and $200 per hour. But, hiring app developers from developing countries like India may be the most cost-effective option.

2. Time Optimization

Working with an outsourced team helps you save a reasonable amount of time. After all, experienced professionals don’t need time to train and practice and quickly embrace your organization’s technology, ambiance, and culture. Their experience in many technologies makes it easier for them to work more efficiently on your project and that will help you focus on other important business stuff.

3. Direct Access to Skilled Talents

A software development company handles different types of projects every year. And, they have a great team of developers who know how to use the latest technology. Therefore, you will find various skilled and experienced developers who are more talented and expert than your newly built in-house team.

4. Complete Work Transparency

Complete work transparency is one of the primary rules of collaboration with an outsourced team. They will always inform and update you about the work progress and maintain full transparency. Moreover, they create healthy relationships with their clients and maintain clear communication. So, you can rest assured of the work transparency.

5. Outsource Development Teams Are Flexible

As you know, outsourced teams work on several projects simultaneously and use the latest tools and technologies to build a successful app. Hence, they are far more flexible and expert than an in-house team. So, having experience of working with different industries enables them to quickly solve problems and makes them more flexible to work on any project they get.

6. Tech Biggies Leverage Software Development Outsourcing

Big organizations always take benefit of software outsourcing. Moreover, thriving tech startups like Skype, Slack, and WhatsApp also benefitted from outsourcing to achieve today’s position. Hence, if tech biggies enjoy the benefits of software outsourcing, why can’t startups leverage the same?

7. No Training Required for the Development Team

Every beginner requires almost 100 hours getting accustomed to a new place, exploring the company culture, and becoming friends with colleagues. If you calculate the time and amount you need to invest, you may face critical issues for your startup that has tight budgets. However, there is no timing issue with a dedicated development company working together for a long time. They can start working on your project from day 1 of hiring.

8. Helps Improve Capacities with Local vs. Global IT Talents

Skilled and expert developers are always in high demand in technology-driven fields. Based on your location, you may lack professional developers. Software developers can work from anywhere globally. Hence, not thinking globally is a big disadvantage with any company’s budget and skillsets, whether big or small.

9. Helps You Focus on Your Basic Competencies

If your startup is not a tech-driven agency, you must have other internal tasks to do. Outsourcing may help you build an app for your company while letting you focus on the core jobs of your organization. You don’t have to be with your outsourced team all the time. You can relax and concentrate on the core business tasks and let the teams work for you.

10. Assurance of Better Security

When hiring an in-house team, you are always at stake that they might leave you after receiving a better job offer. However, with an outsourced team, the scenario is different. Since the company signs an agreement before starting the work, they work hardest to give 100% effort.

11. No Work Hamper

Your hired developers may get sick or take leave for some reason. If this is the scenario, your work gets hampered. And you can not achieve your goal on time. However, outsourced companies do their best to meet deadlines. They have more developers in their team so there is no chance for work interruption.

12. Quicker Time to Market

With software outsourcing, you don’t need to depend on your in-house team for product launching. Moreover, you don’t require investing much time in project management after hiring remote developers for the project. Hence, you can enjoy a shorter development period and more focus on the marketing work of your business.

13. No Requirement of Micromanagement

If you outsource your project to a software development company, then a project manager coordinates for your all needs of product development. Moreover, the company signs the agreement to follow all your terms. And they cannot resell or copy your product.


The above-mentioned reasons have shown why you should outsource your software development project. It guarantees that your product meets market requirements and is delivered on time. So, outsource the software development to an industry-best company and give your newly-funded startup a boost.

Click to comment

Leave a Reply

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

To Top