06 Jun, 2024

5 Worldwide Startups, Which Won From Outsource Developers

The development of a new application, website, or technology always seems extremely complicated. This is especially true for startup programmers whose aim is to succeed in the market and boost their business at once. New companies are often limited in budget and time to look for and hire an in-house team. In such a case, outsourcing developers is a profitable way to become a technology leader fast and easily.

The global IT outsourcing market size was valued at $29929.09 million in 2021 and is expected to reach $41614.95 million by 2027. Let’s learn how you can skyrocket your developments, save costs and become one of the most successful startups in your niche.

What’s Outsource Development?

Outsource development is a process when a business delegates certain aspects of product creation to third-party vendors. Usually, an outsourced software company is qualified and experienced enough to help you deal with specific tasks better than your in-house team.

The lack of skillful workers is one of the main issues standing in the way of achieving goals. It is especially critical for small businesses and startups that may not have in-house developers at all. However, the solution is rather simple: companies that use outsourcing can stand out from the crowd and collaborate with professionals cost-effectively.

Feeling inspired? Continue reading to discover the advantages of outsourcing services and how they can take your business to the next level.

startup outsourcing

Why Does An Outsourced Development Team Benefit The Business?

Nowadays, the number of small businesses and startups that outsource is constantly growing. Why is it so? Because when you cannot find an employee with the necessary skills and qualifications, your business loses money and time. Though, outsourced business development can help you change the situation. Let’s find out its benefits.

  • Lower development costs

Hiring professional developers requires considerable spending on their salaries. This may be extremely harmful to small businesses and startups that are creating their products from scratch. On the other hand, working with outsourcing teams can reduce costs significantly.

Firstly, you don’t need to rent an office, provide technology and set up infrastructure for outsourced developers. Secondly, you can delegate tasks to professionals throughout the world. This is especially important because the countries in Eastern Europe are known for their talented professionals who set comparatively low prices. Thirdly, you can partner with an outsourcing provider right at the first stages of startup development, which helps reduce the market price of the technology and make it more competitive.

  • Access to profound knowledge and experience

Applying outsourced business solutions allows you to work with a team of experts from different fields. Because of this, your employees will be able to focus on their main competencies, while all other aspects of development are delegated. This allows you to become more flexible and free the company’s staff from secondary tasks to keep the focus on product quality and long-term goals.

The IT market is constantly changing. Sometimes startups need specialized skills that in-house employees may not have. In such a situation, it is better to work with outsourcing providers or a freelance developer to fill the gap and solve the problem quickly. Another advantage of this solution is that your main criterion is no longer the location of the worker. You can choose people from all over the globe based on their professionalism.

outsourcing for startups

  • Ability to create the minimum viable product

If you have a prospective idea and the passion to change the world, the last thing you want to do is to gather a development team. Finding professionals in various fields can be rather time-consuming and frustrating. However, there are plenty of successful outsourcing examples when businesses launched an MVP (Minimum Viable Product) in the shortest terms.

This is because collaborating with an outsourcing software development company allows you to come up with a strong idea and delegate the most complex tasks. Usually, in such cases, the project managers are able to give you a clear understanding of how much time the development will require. Moreover, you can start by delivering only the MVP and improve it according to the needs of the target audience.

  • No necessity for micromanagement

Firstly, communication with an outsourced development firm is usually more effective than within an in-house team. The only people you need to deal with are the project managers. They schedule meetings, set deadlines, build workflows and distribute responsibilities across the outsourced team. You can always get in touch with a project manager to discuss any issues and make changes to the budget planning.

Secondly, people often work in one outsourced software company for years. Because of this, it is easier for them to achieve consensus and complete their tasks more effectively. And if there are problems, project managers can quickly replace one employee with another, as they know the experience and specialization of all team members.

it outsourcing for startups

  • Easy scalability and reduced risk

Working with outsourcing companies allows startups to scale with ease. In case you want to increase the number of features, managers can hire more people to work on your product. On the other hand, if you aim to reduce the development budget, they can make the team smaller and assign a few employees to other projects. It would be difficult to organize such a workflow with an in-house team, as you’d have to hire and fire people every time you need a specific skill.

Also, outsourcing providers have enough experience and knowledge to foresee issues the product may have and solve them during the development work. It allows startups to deliver clear-cut technology at once and avoid fixing errors in the future. In such a way, your product becomes more well-defined and competitive to attract more potential users.

Well-Known Companies That Use Outsourcing

Currently, software application development is the most frequently outsourced IT services, although the tendency across all niches is the same. There are plenty of successful technology startups that delivered the development of their product to external specialists. Let’s discover some outsourcing success stories.

  • Slack

This is one of the most popular tools for remote teams that allows companies to arrange their communication effectively. You can organize chats by channel for different projects, share data in direct messages and connect with other apps to make work easier. The company was founded in 2009 and by 2020 had 12 million active users daily. Such a sharp rise in popularity made Slack one of the fastest growing startups in the market.

In 2013, the platform’s owners decided to improve and polish their prototype and hired MetaLab to redesign their logo, application, and website. Also, outsourcing developers helped them with the hunks of software necessary for the launch. Within 6 weeks, Slack was updated and became much more attractive to consumers.

  • Google

One of the most well-known companies in the world, Google started its way to outsourcing in 2011. It hired more than 1000 employees throughout the world to deal with support queries. Currently, the business generates most of its revenue through advertising and benefits enormously from Google Ads development.

In 2018, outsourcing developers outnumbered 89058 in-house employees of the company. Why does Google work with contractors? In the early stages, it may be difficult to find programmers for a startup. But such corporations, as Google, do so for two reasons. Firstly, to engage with experts they don’t have in-house, and secondly, to cover spikes in work and parental leave for employees.

outsourcing software development for startups

  • GitHub

This open-source platform allows developers to upload, share and manage the code of certain projects. It is one of the most successful company outsourcing examples that allows IT experts throughout the world to work together.

However, when GitHub was in the early startup stages, the owners didn’t have money to hire an in-house team of developers. Thus, they collaborated with Scott Chacon to build a backend for their product and outsource the creation of the MVP. Their development has been successful, and currently the platform has 73 million active users throughout the globe.

  • WhatsApp

This messaging service allows users to chat, make voice and video calls, and share content for free. Today the company is part of Meta Holding, but before it was acquired by the corporation, it constantly took advantage of outsourced business solutions.

When its founders only created a startup idea, they hired an outsource team in Eastern Europe to develop most of the features and craft a cutting-edge application. This allowed founders to save costs and build a high-quality platform with comparatively low expenses. As a result, WhatsApp became one of the most downloadable apps in the world and played a role in replacing SMS with more innovative and practical technologies.

  • Alibaba

As one of the biggest marketplaces in the world, Alibaba stood behind the competition thanks to the outsourced software company. Jack Ma, the founder of the platform, was searching for experienced developers and designers and hired a remote team from the US. When Alibaba was a startup, it targeted a bilingual audience. Thus, Jack Ma was searching for people who could take his project to the global level.

Today, this is the most popular marketplace in China. The number of orders on the platform set a world record, peaking at 583,000 purchases per second in November 2020. The technical capabilities of the service impressed developers throughout the globe and became one of the main reasons why the startup succeeded in the market. And the company is still growing!

Do you want to boost your business, get more funding and reach a wider and more variable audience? Read our articles for startups that will help you attract investors and spend costs more efficiently and productively.

How To Choose A Top Outsourcing Company?

Deciding who to delegate product creation to is one of the main concerns for startup founders. In this section, we’ll cover how to successfully outsource software development and what aspects to pay attention to when collaborating with external experts.

startup outsource software development

1. Check the company’s experience

The most critical when choosing your virtual assistants for product creation is to check their proficiency. You can discuss previous projects the outsourced IT companies worked on. Then, analyze the performance of those businesses, make sure you like their developments and ask for testimonials.

Experience in your niche is also an enormous advantage. When considering outsourcing examples of the companies, find out more about their specialization. There are plenty of outsourcing types, so if the business provides both full-stack development and particular services, it’s more flexible and can adjust its workflow to your needs.

2. Discover more about their reputation, values, and goals

Look through the company’s social media, website, and blog. With all these owned media , you can make sure that its expertise and reputation are strong enough. Find out more about the values of the company, as you should clearly understand what kind of people you will outsource the part of your startup to.

A clear understanding of your goals is one more important point. Whether you are focused on lead generation or building long-term relations with a few B2B clients — a top outsourcing company should keep this in mind and create a product based on your needs. Remember that one or a few consultations before starting the work will positively influence the further development process.

3. Discuss the budget and workflow at once

Soft skills are also critical to successful collaboration. Pay attention to how managers of the outsourcing provider communicate with you. Talk about the peculiarities of the workflow and build a strategy: how often there will be meetings and feedback sessions, and what you will do if there are urgent tasks. Your partner company should be flexible enough to deal with all the changes.

The budget is one of the main aspects startup founders consider while choosing the best outsourcing companies. Discuss all your needs, spending, and the opportunity to reduce or scale the budget if the situation changes before signing the contract. Remember that proficient developers cost more, but you won’t spend money on refinements and debugging in the future.

Wrapping Up

Working with outsourcing teams can boost your startup in the market, help you get more funding and become an innovator in the niche. LITSLINK offers profitable opportunities for collaboration and provides over 300 developers with experience in different fields to take your product to the next level. Trustworthiness and transparent management are our main values. We know how to make developments successful and provide 24/7 customer support.

Take advantage of LITSLINK’s outsourcing services and succeed in the market with ease! Contact us.

Scale Your Business With LITSLINK!

Reach out to us for high-quality software development services, and our software experts will help you outpace you develop a relevant solution to outpace your competitors.

    Success! Thanks for Your Request.
    Error! Please Try Again.
    Litslink icon