Building a startup is no cakewalk. It requires dedicated effort by goal-driven professionals who have a ton of things to focus on their plate. While many such startups believe that having an in-house team of developers is a safer way to achieve software solutions, choosing to outsource software development has its benefits. Nevertheless, these startups look to ease their workload by outsourcing the software development task. Below are five reasons that explain why hiring a software development company for the software requirements is beneficial for the toddlers of the industry.
Focus on core competencies
Hiring a software development team for your startup reduces the stress of the whole development process and improves concentration to strengthen the core services that you provide. It also does not put extra pressure on your in-house staff with tasks that do not match their talent. There is a famous quote in modern management that says, "Do what you do the best and outsource the rest". Leaving the non-core activities like software development and web development to the specialists also reduces the risk of inefficacies and mistakes in the task.
Budget Optimization
According to Mark Growth, 46% of startups fail due to a shortage of funds. Outsourcing software development relieves a startup of expensive services like hiring and training software developers, the space requirement, staff insurances, payroll taxes, buying office equipment,…, etc. Most startups cannot afford and innovate freely due to the high cost of hiring a software engineer as their average pay ranges around $107000/yr. When you outsource, you are paying them only for their service, which saves you from perks and frills to be provided to them. Startups can save up to 30% of their operating cost by outsourcing their software development needs. If you are lucky, you can attract high-skilled professionals at a much lower rate through outsourcing.
Superior talent pool/quality
When you look for a partner to outsource, you will of course search for the best in the business. You have the option to collaborate and avail yourself of the service from the best in the industry. It offers you a varied range of options that are available in the market. Also, you can fragment the task and select specialists for each part of the software development process, including consulting, design and development, creative services, market research and analytics. Besides talent, experience is also a vital factor in the expertise of a skill. Since the outsourcing company handles hundreds of clients like yourself, they have better exposure to the market and the competitive requirements to excel in a project.
Time-Saving
Outsourcing can save you time that previously had to be allocated for the software development process. When you hire an in-house team, a lot of time is wasted in training them, making them understand your vision, creating a working atmosphere among those hired etc. When you outsource, you will not have to worry about these issues.
Outsourcing also assures that your needs are taken care of on time. The ones you hire for the job are bound by the deadlines in the service contract. All you need to do is to control the deadlines. It assures you of the timely completion of the project and boosts your productivity.
Risk Management
Diversifying your investment is always a secure option, rather than putting all your capital in a single place. Splitting the components and dividing them among different vendors reduces the risk factor involved. If you don’t trust them, you can hire them for a short-term, low-risk task and judge their performance. Gradually, you can partner with them for future projects.
When you outsource the software development project, the hired team will work its best, not just for the pay but also to establish its brand name and if it is an already established brand, then to continue its goodwill in the business.
However, when you outsource, there is always a risk of data theft and security. Hence, before recruiting an outsourcing partner and handing them the company data, it is important to cross-check, examine their records and bind them with a legal contract.
Junaid Raza is a Tech Blogger and Digital Marketer with several years of experience in the industry. Right Now he is working in Leads Brand Connect. He likes to help businesses stay informed and up to date with established and emerging digital technologies like SEO, SMO, ecommerce, crm and paid advertising.
