Logo Logo
  • Services
    Software Development Application Development QA & Testing Others
    Custom Software Development
    Enterprise Software Development NearShore Software Development
    Software Product Development
    MVP Development & Consulting SAAS Consulting & Development
    Software Outsourcing services
    Dedicated Development Teams Staff Augmentation Services Offshore Software Development Offshore Development Center (ODC) Software Development in India Hiring Remote Developers FAQs Hire Indian Developers How It Works
    Software Consulting Digital Transformation Whitelabel Services
    Mobile App Development
    Cross Platform App Development Flutter App Development iOS / iPhone App Development Andoid App Development React Native App Development Xamarin App Development
    Web App Development
    Website & Portal Development
    Backend Development Services
    .NET Development Services Laravel Development Services PHP Development Services Node Development Services Java Development Services Python Development Services SharePoint Development Services Wordpress Development Services Drupal Development Services
    Cloud Application Development
    Serverless
    Frontend Development Services
    Angular Development Services React Development Services Power BI Development Services
    Full Stack Development
    MEAN Stack Development Services MERN Stack Development Services
    Application Maintainance & Support Application Modernization eCommerce Development Services OTT App Development Services
    QA & Testing
    Hire Software QA Application Testing Mobile App Testing Web App Testing Automated Testing
    Dashboards & Analytics
    Data Analytics Consulting & Management Microsoft Power BI
    DevOps
    DevOps Consulting Amazon AWS
  • Hire Developers
    Backend .NET C/C++ Django Firebase Golang GraphQL Java Laravel Node PHP Python Ruby on Rails Symfony
    Frontend Angular HTML/CSS PowerBI React Vue.JS CMS Drupal Kentico Sitecore Sitefinity Umbraco Wordpress
    Mobile Android Flutter Ionic iOS Kotlin React Native Swift Xamarin eCommerce Magento Shopify
    Full Stack MEAN MERN Blockchain Cryptocurrency Ethereum ICO Smart Contract Solidity DevOps Azure AWS
    ML Chatbot Dialogflow RPA Tensorflow Low-Code Appian Outsystems Mendix
  • Technologies
    Trending Serverless Internet of Things Machine Learning Blockchain AR/ VR OTT RPA
    Platforms SharePoint Microsoft Power BI Magento Shopify Wordpress
    Programming
    iOS / iPhone Andoid React Native .NET Laravel PHP
    Node Java Python Drupal Angular React Flutter
  • Solutions
    Industries Healthcare ISV Automative Fintech Retail & eCommerce

    Education & Elearning Travel & Tourism Banking & Financial Services Logistic & Transportation Media & Entertaintainment
    Solutions Financial Management Workforce Management
  • Company
    Overview Case Studies In Media Clients & Testimonials Careers Blog
  • Contact Us

Like What You’re Reading?

Join us to get latest updates
Loading

Why Outsourcing is Important For Startup Product Development?

  • Posted By admin
  • 27 Views
  • 0
Why Outsourcing is Important For Startup Product Development?
  • Outsourcing and Off-shoring
  • Benefits of Outsourcing
  • Cost-cutting
  • The risk is lesser
  • It’s Faster
  • Technical Expertise
  • Free up time and more focus
  • key steps for your startup to effectively outsource product development
    • Choose the Right Vendor
    • Defining The Scope Of The Project
    • Communication
  • Wrapping Up

Table of Contents

  • Benefits of Outsourcing
  • Cost-cutting
  • The risk is lesser
  • It’s Faster
  • Technical Expertise
  • Free up time and more focus
  • key steps for your startup to effectively outsource product development
    • Choose the Right Vendor
    • Defining The Scope Of The Project
    • Communication
  • Wrapping Up

In the wake of the COVID-19 pandemic, most tech startups, in fact, enterprises have drifted away from developing new software products in-house. But is it right to stop growth in the face of a disaster such as this?

Make no mistake, the novel coronavirus is as big as a problem as it gets. But the world will eventually come out of it. At that time, would you want your startup to take its time to freshen up and understand the needs of the market? Or would you want to start preparing a great software product so you’re ready when the market needs it most?

I’m pretty sure your choice would be the latter, but most businesses have their hands tied. They’re unable to operate due to lockdowns, disruption in supply chains, unavailability of staff, and out of myriad problems created by COVID-19. Yet, there are few businesses that are fortunately working as smooth as ever, especially in the software outsourcing sector.

So if a business (maybe yours) is unable to work on an in-house software project due to COVID-19, is it a wise choice to outsource it to an offshore software development company? Why outsourcing is important? What are the benefits of outsourcing a software development project?

Group 49197

Say, if you’re a tech startup in desperate need to capitalize on an opportunity and establish a market presence, then:

1- This isn’t the best time to run your business.

2- Once we’re done with COVID-19, the state of the market at the time will present unprecedented opportunities that startups could capitalize on.

But at the same time, your startup could be competing with 100s of established enterprises looking to capitalize on the same opportunities.

Is there something you could to have an edge over potential competitors in such a scenario? Product Development Outsourcing could be the masterstroke for a competitive advantage in the long-run. Here’s why.

outsourcing product development

As you may know, there are multiple options available in the market to build functional software products. However, when it comes to startups, there’s a conventional line of thought which says that the benefits of outsourcing are for enterprises only.

But you can certainly outsource product development as a startup and this is important to your business as well, especially in this pandemic situation. 

Benefits of Outsourcing

There are multiple benefits of outsourcing IT and software development services. let’s start with cost.

Cost-cutting

Managing a budget is a big challenge for startups. However, outsourcing helps a lot to do it right.

In fact, according to a research, 87% of US companies outsource product development to save cost. 

Outsourcing provides a global talent pool at a low cost. You hire a backend developer (in-house) at  98000 USD/year and it comes down to 22000 USD/year when you outsource.

The risk is lesser

In the case of new products whose market is yet to be tested, outsourcing plays an important role in mitigating the risks of trying out something new.

Since the outsourced teams work on flexible models the risks are definitely lower.

It’s Faster

Outsourcing the development helps in faster development with the Agile model and helps in tremendously reducing the time to market.

9% PEOPLE GLOBALLY outsource only to fasten their process.

software development team

Technical Expertise

You may be new to the market. That’s not an issue until you have technical expertise with you. If you already have that, then it’s good, however, if you don’t- then it is better to outsource.

15% PEOPLE GLOBALLY outsource to access expertise

Free up time and more focus

For startups, investing time into high priority things is very important. One of the greatest benefits of outsourcing is that you free up your time for other important things. This helps a lot.  This image will show you some other reasons why is outsourcing important:

Why is outsourcing important

You can also check this list from entrepreneur.com about successful startups that leveraged the benefits of outsourcing successfully.

key steps for your startup to effectively outsource product development

Choose the Right Vendor

Choosing the right vendor for outsourcing application development is a must. An outsourcing company with expertise in the required development skills will surely be helpful. Picking up freelancers is definitely not advisable, as they cannot be relied upon, for taking up product ownership.

One of the important points to consider while selecting a vendor for outsourcing development is the flexibility of hiring models.

This helps the startup choose a hiring plan that will optimize the costs of outsourcing in accordance with the development requirements.

It is also important to evaluate the portfolio of the hiring vendor to understand the level of specialization in different business verticals.

Defining The Scope Of The Project

The second most important step in outsourcing your product development is to define the scope of the project. First, you need to convert the business idea into a business plan and then put down what all you need from a successful product. Defining the technology with which you wish to develop your product is another crucial decision. This also helps in defining the skill levels of the teams you wish to hire.

Once the scope of the project is defined and the vendor for product development has been chosen, the service level agreement with the vendor can be created.

This helps in ensuring that the outsourced teams are working according to the plan of action.

The outsourced teams must be clearly communicated about the expectations and the milestones. This helps in developing mutually beneficial relationships with the outsourcing partner.

software development

Communication

Keeping in touch with the outsourcing partner on a regular basis and reviewing project work in progress on a constant basis is important. This is helpful in improving project productivity levels. Motivating remote teams with incentives and appreciation is helpful in getting better business results.

Overall, a continuous communication helps you to finish tasks smoothly.

Wrapping Up

Looking to outsource your startup project? Here are some key benefits of outsourcing you software development needs to ValueCoders:

  1. Flexible hiring models
  2. Advanced technical project consultation
  3. Agile methodology and timely project delivery

ValueCoders( a leading software development company in India)provides expert agile teams for all kinds of startup site and application development. We have teams across all our departments, all 350 of them working remotely to assist all your software development outsourcing requirements.

We know these times are rough, but our entire team is working through it. And we are doing it for small businesses, startups, and enterprises like yours; so everyone could come out safely this pandemic, together!

 

outsource software development

Tags:hire isv and product companyit outsourcingit outsourcing companyOutsourcingoutsourcing product developmentproduct developmentSoftware developmentSoftware outsourcing companies

RELATED STORIES

Offshore Outsourcing vs. Hiring In House Teams Which is Better for Your Business
Outsourcing vs Hiring In-House Teams: Modern Scenario
image 2022 03 29T09 48 41 202Z
Offshore Software Testing Best Practices: How to Ensure Quality Assurance…
Staff Augmentation Project Outsourcing or Managed Services
Staff Augmentation vs. Project Outsourcing vs. Managed Services: Which One is Right for You?
×

Download Your FREE e-Guide NOW!

Discover What, Why & How of "Offshore Resource Hiring" with this FREE e-Guide!

Valuecoders

Fill out the form below to download the e-Guide now.

Leave a Reply Cancel reply

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

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Copyright © 2004 - 2022. All Rights Reserved. ValueCoders.com Become a Partner | Privacy Policy | Terms of Service | Why India? | FAQ | Disclaimer | GDPR Theme Light | Dark | Auto
This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are as essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT