Why Startups Should Outsource IT:
Top 5 Reasons and 4 Rewards
Many startuppers have an itch to do it all. A strong belief they have to participate directly in every aspect of business, starting from hiring employees and finishing with programming. Just to get everything done and done it RIGHT! Outsource IT? No way!
But in fact, poking your nose into everything and trying to be jack-of-all-trades is not an efficient way to do business. Think twice – can you really afford to spend your precious time on developing a product, marketing, looking through CVs, keeping accounts, and many-many other things, and after all that fix bugs in your website or app? Hardly.
Then you might think of two ways: either exhaust your employees by putting loads on their plate, or hire more high-paid professionals. Neither option is a panacea, though. There is a much wiser choice – outsource some jobs, at least IT, to a specialized agency. Whether you want to launch a landing page or build a mobile app, delegate it to a professional outsourcing software development company, and you’ll see the results.
Global IT outsourcing market is booming now and according to Technavio, a London based research company, it will grow at a CAGR 5.84% in 2015-2019. Which means that in the near future a lot of startups, including your competitors, are very likely to take advantage of IT outsourcing for developing their products. And here are some killer arguments that will convince you to do so too.
Main Reasons to Outsource IT
First let’s define the main reasons for outsourcing your software development.
1. Focus on core business processes. Being a founder you will be able to focus on your main competencies, and the company in general – on core business processes.
2. A power of choice. Because of the outsourcing markets being over-saturated,you have a wide range of firms (nearshoring or offshoring) to choose from. Depending on your resources, you can opt for
- сheap and fast web or app development (South Asia – India, Pakistan)
- slower, more expensive but of top quality (Europe – Baltics, Belgium, UK, Germany)
- best value for money with acceptable terms (Eastern Europe – Ukrainian software outsourcing firms)
3. Reduce load on the internal resources. If you have an admin who is pretty good at computers and knows something about HTML or Python, it’s not the best idea to commission him the website development. Instead, outsource it to a specialized web development company and let your employees put every effort in the job they were hired for.
4. No need to expand your staff. Thanks to outsourcing you don’t have to hire employees on a regular basis whose heads and hands are required sporadically.
5. Keep up with the latest technologies. Because of stiff competition, outsourcing software development firms need to follow the latest IT trends and provide the most efficient solutions to deliver the best practices within the industry. It is the matter of life or death.
Benefits of IT Outsourcing
Here are rewards you gain when outsourcing web, app, design or any other software development.
1. Cost-effectiveness. Perhaps the most attractive part of software development outsourcing. Usually, you will pay less for the development than you would spend on in-house engineers (hiring, salary, taxes, training, working space arrangement, vacations, sick leaves etc.). Besides, you can discuss with the service provider the most effective pricing model for your project:
- time and material
- fixed price
- dedicated team.
2. Quality. Being a startup you must strive to make a great first impression on investors and clients. Blow their minds with a nice-crafted app that has rich functionality and high stability! Attract them with mobile-friendly website designed in keeping with the latest trends! All that and much more is achievable when delegating IT to a custom software development company with proven experience and expertise in technologies you need.
3. Professionalism. This a root cause of quality. Usually outsourcing companies hire talented engineers who already passed rigorous selection. Multiply that by experience and constant education (self or employer driven) and you receive real professionals of their craft. That is why, be sure – a highly-qualified and skillful team will take care of your product.
4. Flexibility. Outsourcing firms have multiple resources at their disposal (quantity of engineers and their levels of expertise, technologies, etc.), so you can enlarge or decrease your team if necessary, change technology stack or pricing model, etc.
