13 November 2020

by Spark Eighteen

Should a startup outsource software development?


To outsource or not to outsource? – this remains a big question in the world of startups. It’s truly staggering how most entrepreneurs and business visionaries see outsourcing as a procedure reserved only for large businesses and firms. It’s not! In fact, it is widely believed that outsourcing has a major effect on small businesses and startups on their development, profitability, and other primary concerns. So, is outsourcing software development a great idea for your startup? Hopefully, by the end of this blog, you’ll get your answer.

Table of content:

  1. Higher Flexibility
  2. Agile Methodology
  3. Saves Time
  4. Access to necessary technical expertise
  5. Costs Savings

Whether big or small, today the biggest challenges for any business revolves around technology. Technology encircles software, hardware, information technology, websites, mobile apps, etc. By getting hold of the right technology, businesses can increase their efficiency and boost productivity.

However, many startups with lower budgets, fewer resources, and fierce competition find themselves drowning in the boat of these challenges even before sailing. That is why to overcome this, they need to find a swift solution.

The best and wisest decision they take is to outsource software development.

it services spending

Today, technology is evolving at a rapid rate. The world of tech is ballooning every day with the inventions of new products and upgrades of the old ones. To keep up with this constant evolution, startups need to execute fast on their ideas or they will not be able to penetrate the market when it is required the most.

Outsourcing is there to help them with that! So, if you own a startup and are considering it yourself, we’ll further help you understand how it can be beneficial for you.

What does Outsourcing Software Development mean?

Outsourcing software development simply refers to a situation where an organization reaches out to hire a team of developers to offer software development services. The tasks of this team include researching, designing, prototyping, coding, testing, and launching the required product as per the client’s needs. This helps companies to hand out essential business processes to a specialized third-party and manage other complex business tasks.

Great products aren’t made overnight. They are learned through trial and error by a team of professionals with a passion for design and great user experience. Outsourcing an experienced product development team helps startups develop and launch their product by working on all the other crucial things themselves.

it workers outsourcing software development

It makes hiring developers a wise choice for startups as:

  • Most of the businesses today need software services;
  • There are innumerable software projects;
  • Outsourcing software development services can help companies reduce costs.

Is Outsourcing a viable choice for startups?

If your startup has an in-house team with the necessary skill set for carrying out the development and launch of your product, then outsourcing may not be a consideration for you. However, if not, think if your startup is facing any financial or time constraint to hiring an in-house team.

Most entrepreneurs often underestimate the time, energy, and costs associated with hiring and building an in-house team. Cost savings is one of the main reasons why most startups feel the need to outsource software development.

The cost of hiring a software developer is much higher than the outsourcing one. The current competitive environment also calls for businesses to be more efficient. To stay ahead of the competition, managers today must develop multiple strategies and this includes automation, standardization, and business re-engineering. Outsourcing is one-way startups can meet these goals.

Benefits of outsourcing software development

In these competitive times, companies want growth which comes with specific needs, supplies, and expertise that can be out of a company’s current resources. Building a development team with top-notch expertise and necessary tech skills might take a lot of a company’s time and finance. That is why to easily resolve this issue, hiring a dedicated product development company can be the best choice.

Here are some benefits that startups can avail of when outsourcing:

1. Higher Flexibility

Outsourcing software development brings in the flexibility of using the services of an experienced team of software developers as per your needs. This means you can hire software developers and rehire them as per your own requirements. This cannot be possible with an in-house team as you need to spend unnecessary time and resources on its maintenance after the development task is over. You may even terminate their services after the development task but what if you need them again? What if your software demands an upgrade or several tweaks? Will you be ready to rehire the developers and spend a big chunk of money again?

With outsourcing, you even get the convenience of hiring more developers along the development process which can help you build your software in a much faster time.

2. Agile Methodology

It is widely believed that agile methodology is one of the best ways to achieve enhanced product quality. With a software development ecosystem based around agile, your business gets guaranteed collaboration between cross-functional IT teams and businesses. This enables proficiency, productivity, and an inimitable development pace. An efficient agile team can easily identify and fix errors to build the most perfect product apt to satisfy consumer needs.

3. Saves Time

silicon valley

Developing a full-fledged operating product takes a serious amount of time, effort, precision, and resources. Businesses, whether big or small, have hundreds of other activities to account for apart from engaging in the development process. Outsourcing the development part will help you meet with a much quicker development process so that you can focus on the other core areas of your business. This is much easier than opting for an in-house development process where hiring and training the team takes up extra time.

4. Access to necessary technical expertise

Choosing a product development company with the right expertise will help you develop a product that is not only competitive but also progressive. Over the years, emerging technologies such as blockchain, Internet of Things (IoT), AI/ML, etc are accelerating changes with an organization.

The modern market demands businesses to be digitally transformative, future-ready, and are ready to keep pace with rapid technological change. That is why startups must outsource an experienced software development team that can bring necessary technical guidance to the table to design their software applications with a more futuristic approach with predictive analysis. This way, with software developers, startups also get a complete package of experts that help them guide through the process.

5. Costs Savings

Contrary to popular belief, hiring a professional team of software developers doesn’t burn a hole in the pocket. In fact, cost reduction is one of the most popular advantages of outsourcing. The specialization you get at lower operational and labor costs can help you cut off all the unnecessary practices your venture used to indulge in. Outsourcing can help your company transform your fixed cost to variable cost that would yield a significant saving.

harvard business review


Startups all over the world have started to comprehend the benefits of outsourcing software development. If you’re ready to achieve your software goals while also saving costs, reducing risks, and saving time, now is the time to get started with a group of proficient and dedicated experts. Spark Eighteen is a software product development company with an excellent mix of professional developers. With in-depth industry insights and the right technological capabilities, we help your business gain top-line growth. Contact us today to help you define the right path to achieve your software development goals.

Spark Eighteen

Spark Eighteen is a brainchild of innovative young minds and a group of alarmingly out-of-the-box thinkers who happen to see the world of marketing from a new age perspective. With a proven expertise in the field of Brand consulting, Digital Marketing and Website Design and Development, our team of designers, developers, and creative heads work towards delivering maximum results, tailor-made to all your business needs.
Spark Eighteen

Leave a Reply

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

Contact us