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Why startups outsource their software development services
Why startups outsource their software development services

Why startups outsource their software development services

The strategy and the nature of start-ups are fundamentally different from those companies that have already run a business.

Startups have not yet found a sustainable business model, while the operating business is already profitable. This means that the approach and the product development strategy for startups must also be different.

If in the case of already operating businesses, outsourcing software development might be a question to consider due to a number of reasons, for a startup outsourcing of their development needs is definitely an advantage.

There are several reasons why startups can benefit from working with the outsourcing company:

1. Price

The number one and the undeniable advantage of outsourcing is the price. Outsourcing is a great alternative for the startups to replace the staff of in-house developers and eliminate expenses related to income taxes, wage social contributions, sick leaves, employee benefits and other stuff that goes compulsory with the salary payments.

Even without describing the topic of price in all the details, it is obvious that monthly costs for outsourcing of the software development services will be lower.

Many startups have limited budgets initially, so working with the outsourcing provider will allow them facilitating their financial planning and budget as well as help them to make their dreams come true in the range of their financial expectations.


There are lots of frightening stories about the quality provided by outsourcing companies. However, mostly those fears are based on some particular negative experience. In reality, there are many companies that value their reputation and cannot afford non-professional attitude to the work they do.

Outsourcing business is the only source for the income for them, besides there is a high competition on the IT market, so both these factors determine the interest of the outsourcing company to deliver the polished products in a timely manner and at the most qualitative level.

The quality can be verified in several ways:

For example, if there is a technical specialist within a startup, they can ask for code samples, make a list of technical questions and interview the team before they make any decision.

For non-technical professionals, the most effective way is to talk to the current or past clients who already work or used to work with the team and can share their impression directly about quality they provide. By the way, here is a great video guide describing the comprehensive steps to select the best company to work with.

As a rule, the companies that provide outsourcing software development services, including IT Craft, take care of the level of their employee qualification, keep the track on IT trends, take part in industry events to stay competitive on the market and efficiently implement the tasks set by the clients.

3. Time

Time is of the essence of any business, especially time matters for startups. Outsourcing companies, the core business of which is providing software development services can always offer well-defined working processes, the variety of cooperation models and highly qualified staff ready to cope with any software task.

Working with the right development partner, a startup gets a reliable and professional team of developers ready to start immediately. In the case of local programmers, it is required to compose a team on your own, which might be a time-consuming process.

Instead of spending precious time for searching for full-time employees and establishing the communication within a local team, it is more beneficial for a startup to choose the outsourcing development company to get the faster turnaround.

4. Communication

Face-to-face meetings with a local team sound very promising, but nowadays they are not necessary. Today’s internet and mobile technologies allow doing business with anyone in the world. All doors for a startup are open, they can choose a company to outsource their software development needs in accordance with their requirements and preferences and communicate with them in audio/video chats in real time.

There is a great variety of tools for online business communication free of charge available now, ensuring both parties are on the same page in terms of the progress of the development, correct implementation of the functional scope, comments on the design, etc.

5. Risks

Indeed, starting its own business, a startup should be sure that the service provider is skilled enough to deliver the product. It is a startup reputation at the stake, and to avoid unforeseen issues at the later stages, it is recommended to begin with a pilot project.

Based on the experience IT Craft has this approach proves to be the most effective. There is no other practical way than a small one-time project or a task to understand how the selected outsourcing team operates.

For sure, there might be more than one test project, several at a row, for example, it doesn’t matter how many of them are required for a startup to have all their questions answered and eventually take a decision on the further assignment of the team with the eyes open.

Best 10 Outsource Websites to Hire and get hired
Best 10 Outsource Websites to Hire and get hired


Software development through outsourcing is a very suitable option for startups. They can get all – qualitative product, top speed and save on the costs.

To enjoy all these advantages a startup needs to perform enough research to find a good company and combine the forces with the selected outsourcing partner to go together to the success. If you are looking for web development Birmingham then are plenty of options you can consider.

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About StephanJ

Stephan J is the founder of Monetize.info and is making a living exclusively online since 2004. He tried and managed to make good profits on everything from Forex trading, options, website flipping, adsense, affiliate websites.His passions are cycling, fitness and he is spending a small fortune on watches and fine cigars

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