6 Reasons Why Startups Should Outsource Software Development

software developmers working on laptops

Outsourcing software development became a new normal in today’s time. If your internal software development team has too many things on its plate, then software outsourcing development is the best way to create a remarkable product. It helps you to achieve greater economies of scale. Also, it lets you focus on your core competencies without spending a great deal of time and money.

Basically, software outsourcing is an agreement made by a business to hire a third party software development service provider to do the tasks that can be done in house. However, in-house app development demands both money and time. And honestly, not everyone has an extended software development team. In such situations, tech businesses hire virtual employees for their project.  

However, tech entrepreneurs have many doubts and questions in their minds while they plan to outsourcing app development. In this blog, we will show you the importance of software development outsourcing for tech startup owners. So, let’s start without further ado. 

Why outsourcing software development is important for startups?

Outsourcing is faster than in-house development as you do not need to rent office space, set up an entire development infrastructure, and a professional team. But what are the other reasons to outsource software development for startups?

If you are having a similar question in your mind, then you should consider the below points to get the answer as to whether or not to hire offshore developers:

Access to a superior talent pool

Outsourcing your development project provides you a great exposure to a superior talent pool across the globe. With software outsourcing, you can expand your technical capability and horizon by letting you access different models of software outsourcing such as onshore, offshore and near-shore. 

With outsourcing software development, the geographical location cannot limit you. Your primary criteria can be the team’s skills and professionalism, not whether they are near to your location.

Cost effectiveness

As per MarkGrowth, approximately 46% of the startups fail because of the shortage of funds. And that is why cost savings is one of the aims of software development outsourcing. 

The duration of the software development and the hourly cost of developers forms a major chunk of the development budget. Again, the hourly cost is more essential between the two. So find out the best per hour cost of developers before choosing a software development model.

If you take developed countries like North America, South America, Europe, or Australia, a nearshore or onshore outsourcing model might prove as expensive for the overall development. However, offshore hiring to countries such as the Philippines and India might be best to reduce your overhead cost.

Ultimate control over project

Outsourcing your software development can give you better control over your project compared to an in-house development team. An outsourcing software company knows best how to gauge your enterprise.  

Furthermore, a software outsourcing company can help you design your solution to make it the most adequate for you by considering the size of your organization, your target audience, the suitable technology type, and they will figure out how your solution will perform in the future.

Faster time to market

Global tech companies have gradually recognized the importance of speed to leverage the competitive advantage. With software outsourcing, you do not have to rely heavily upon your in-house development team to launch your product.

Besides this, if you hire remote developers for your project, you do not have to spend much time on project management but have shorter development time and faster time to market.

Furthermore, software development outsourcing enables you to dictate timelines as per your schedule and let you extend dedicated development team at your convenience.    

Time optimization

Working with an offshore development team can save a good amount of time for your startup. Unlike hiring an in-house team, your employees already know each other and how to work together.

When you employ new software professionals, you need to invest a lot of time to train and introduce themselves, and help them adapt to the culture, atmosphere, and technology of your enterprise. 

You will save time if you trust the recruiting process to the offshore company instead of undertaking it in your company from scratch. The outsourced company possesses a profound industrial experience which makes it easier for them to do their job effectively.

No need for micromanagement

When you hire an outsourcing agency for your software development project, the project is coordinated by a project manager. The project manager takes care of your product and development. Besides this, he/she will be your first point of contact in case of any issues with the software development.

Besides this, the outsourcing software development company will sign a contract that bounds them to all your conditions. Moreover, they can’t copy your product or service and re-sell elsewhere. In addition to that, there is room for a solution if a problem occurs while developing your software.


The reasons discussed above in this blog have explained to you better why you should hire an outsource development team for your startup. Outsourcing software development can ensure the startups that the product will be as per the market standards and it will be developed in time.

Outsourcing software development is definitely not a child’s play. But with the right outsourcing partner, you can access a vast knowledge and skill set that will make it possible to achieve top results in minimal time.

This article was originally published on Finextra.