Imagine you have an idea about a great application. It shouldn’t be something that will change the world; it can be just a good application that makes somebody’s life better. The question is: “How to accomplish it?”. Every idea creator needs a strong technical foundation to turn the idea into the real application. A lot of ideas are still just ideas, so it is important to collect a team and start doing the needed actions immediately.
Startup owners often face the dilemma – to look for in-house specialists or hire a dedicated team. Outsourcing for startups is a popular direction but is it really profitable? If you want to understand what risks are waiting for you and what to choose for your startup – keep reading.
Outsourcing can be either the most efficient and profitable decision for your startup or the epic fail. What services can you outsource? What risks you can face and how to avoid them? We’ll answer these questions below.
What services can you outsource?
Actually, you might outsource almost everything. Outsourcing is a kind of delegating some processes to another company or team. It can be something from the following list:
- software development;
- DevOps services;
- customer support services;
- Big Data services;
- cloud computing services;
- data center operations and more.
You literally can outsource every IT service you need. The question is only how efficient will it be and what profits will you receive.
IT outsourcing risks
Inspired startup owners often neglect risks but it is very important to understand what pitfalls are waiting for you and how to avoid them. There are common risks in IT outsourcing.
- Quality of work. This is really a problem because unfortunately there are a lot of unscrupulous companies providing different services. You might face bad quality of work or an inexperienced team. To avoid this risk, try to find a lot of information about your future partner, ask for feedback from previous clients and about successful cases.
- Management risks. Outsourcing is a remote process, so you might have some management issues with your dedicated team. To solve this problem you need to hire a team with qualified Project Manager or hire such talent in-house. This is also a good solution when you have a Project Manager on your side.
- Security issues. Startup owners are often worried that someone will steal their idea. To protect yourself from this risk, sign the NDA with your contractor. Actually, a reliable company won’t steal your idea or sensitive data anyway but NDA won’t be an excessive measure. Also, you might make a patent on your future product.
Benefits of IT outsourcing
We’ve talked about common risks and now let’s see what can you receive from IT outsourcing.
- Cost-efficiency. The very important point for startups. They usually don’t have a lot of investments, so every coin is important. Referring to the outsourcing team is usually cheaper than hiring new talents in-house because you’ll get the whole team at once and don’t need to invest in recruiting and HR processes. Also, such teams often have some ready solutions that they can implement very fast.
- Staff reduction. We mentioned it in the previous point. This is important because you shouldn’t equip new workplaces or rent a bigger office. You just hire a remote team that has all they need for work.
- Access to the talent pool. A lot of great software engineers, DevOps specialists and other talents prefer to work with outsourcing companies because in this way they can work with different interesting projects and startups. Such specialists are rarely available on the job market, so an IT outsourcing company is almost the only place where you can find them.
- Access to the newest technologies. The highly qualified specialists prefer to work with the newest tools and technologies, so your project will be very efficient.
- Competitiveness. All the listed points will bring you competitiveness on the market in the result. IT domain is fast-growing, so it’s important to be on the wave of new technologies.
Final thoughts on IT outsourcing for startups and what else you can receive from IT outsourcing
As you can see, with the right approach you’ll receive a lot of benefits. In addition to the above mentioned benefits, an experienced IT outsourcing company will help you attract new investors by making Proof of Concept and Minimum Viable Product. This is the first presentation and the first version of your product. The experienced team knows what investors will approve and can give you some pieces of advice. That’s why your startup will succeed.
There is a sad statistic about startups – 90% are failing. So to get in the successful 10%, you should meticulously look for the team both in-house or outsourcing because the implementation of your idea will depend on these people.
Keep your eyes open, choose wisely and your startup will succeed.