Software Development Outsourcing Can Help Startups Grow

Software Development Outsourcing Can Help Startups Grow


Today, Slack is valued at more than $20 billion. But back in 2013, is was a small startup — and turned to software and QA outsourcing to get its operations off the ground. And it’s not the only household name that used development and software testing outsourcing to grow its business. Skype, GitHub, Basecamp, and even Google all outsourced software development in the early and sometimes later stages.


All businesses must work quickly, efficiently, and cost-effectively to satisfy consumer demands, but this is especially true in the startup phase. With an ever-changing market, startups need to hit the ground running right out of the gate, and outsourcing can alleviate much of the burden associated with the early phases of building a business.

Here are six important benefits of software development outsourcing startups can appreciate.

6 Benefits of Software Development Outsourcing for Startups

1. Cost-effectiveness


One of the primary reasons why startups frequently use software and QA outsourcing is because it tends to be cheaper than employing in-house developers and testers. Creating a business is expensive, so it’s helpful to find ways of alleviating some of the financial burdens. This way, they can save onboarding and overhead costs. Meanwhile, the development or software QA company will be responsible for hiring and training employees, as well as supplying them with the necessary tools and equipment, so you know you’re not sacrificing talent.


Talent also tends to be cheaper overseas than in countries like the United States. Offshore QA testing and development often offer quality that’s on-par with or even better than onshore services at a fraction of the cost.

2. Ability to Focus on Core Business Functions


Starting a business is a lot of work, and since many startups have small teams when they’re getting off the ground, the tasks often require time and manpower that you just might not have at your disposal. Development and QA outsourcing allows you to focus on important tasks like marketing, securing investors, and other core business functions without spreading yourself too thin.

3. Access to a Global Pool of Talent


If you turn to offshore software testing and development, you’re not limited by workers within your home country — you can explore options worldwide. There are skilled developers and testers in many different countries. It’s easy to communicate and work with people in, for example, Argentina and India through digital channels such as video chatting and Slack, without ever having to meet face to face.


Often, outsourcing partners have plenty of expertise and experience, and you can leverage this knowledge as you grow your startup.

4. Efficiency


Having a productive team that works quickly is crucial to helping your startup grow. A dedicated development and/or software QA company will work quickly to create and test your products since they’re focusing on one critical aspect of your business's success. Presumably, they have the knowledge and experience to complete tasks quickly, without sacrificing attention to detail. Meanwhile, your in-house team members can focus on other aspects of building the organization.


You’ll also save time training and onboarding new employees because you’ve outsourced your labor. Ultimately, this increased efficiency means your time to market is significantly reduced, giving you a competitive advantage.

5. Risk Aversion


When you’re launching a new startup, you need experienced professionals you can trust to deliver exemplary results. When you outsource software development and testing, you’ll have access to the reviews, portfolios, and other important information about potential partners. Given that these companies tend to have plenty of experience and knowledge when it comes to software, you know you can trust them to deliver results, thus avoiding risks associated with hiring full-time, in-house employees.


Moreover, if worse comes to worst, you can easily dissolve the partnership — which is more difficult, expensive, and time-consuming to do with full-time employees.

6. Long-Term Solutions


Many startups that use software and QA outsourcing partners in the early phases, end up continuing the partnership longer-term. If you do find a partner who delivers quality results promptly, it can be beneficial to your company to continue the relationship. That way, you’ll be able to reap the rewards as you continue to grow your business, and your partner will be able to help facilitate faster expansion.


Given that you’ll grow to know and trust your software and QA services, projects will ultimately take less time to complete, because your partner will understand your needs and expectations.


Development and QA outsourcing is one of the most productive and cost-effective ways to build and grow your startup. If you find a partner you can count on to deliver the results you need, you’ll achieve lasting benefits.


As you search for offshore software testing and development partners, make sure to research prospects thoroughly, asking for examples of similar work, speaking with previous and current clients, and investigating online. You should also clearly establish the terms of the contract and negotiate a fair price. Your partner will play a crucial role in growing your startup, so it’s important that you find an organization that understands your needs and that you both understand the terms of the arrangement.

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