Startups Should Consider These 7 Things Before Outsourcing Development
A startup needs its own special method in order to overcome the learning curve and become recognised. It must prioritise tasks like hiring, training, and outsourcing development, as well as components like brand, structure, and principles.
Along the road, many startups employ the practise of outsourcing to finish these tasks. In reality, I am aware of startup business owners who outsource almost all of their tasks.
There is justification for that: High levels of productivity at comparatively low costs are possible with outsourcing. According to a study by Intetics, outsourcing can help businesses cut their overhead expenses by 60%.
Of course, what you outsource relies on the nature of your company and your objectives. However, you must handle outsourcing properly if you don’t want to lose money and possibly even endanger your company.
For instance, if you lack the necessary technical know-how, you might want to outsource the creation of your smartphone app. Better yet, you might prefer to have pros take care of things at a lower cost so you can concentrate on a task that will produce more income, like marketing.
In actuality, you can choose to outsource every aspect of your company, but given how important development is to every startup, you should pay careful attention to the following seven things to understand about outsourcing it.
Select the ideal third party to collaborate with.
It takes intentional endeavours to build a brand you’ll be proud of. Choosing the person in charge of your development is one of the risky steps engaged here (e.g., app development). Should you work with an individual or an agency? The majority of the startup business owners I’ve met and worked with opt to use agencies.
To locate a technical co-founder, you should, however, seriously consider using a site like Meetup.com if your budget is limited (as it is for most startups).
Keep in mind that there are advantages and disadvantages to working with both agencies and independent contractors. First, do some study.
Think about technological standards.
Any form of development, including web and app development, has been redefined by technology. Because of this, you should think about the technology guidelines you’re using when outsourcing.
For instance, mobile utilisation has grown by 58 percent annually, nearly outpacing desktop usage. You can’t possibly hire experts who don’t comprehend responsive design if you’re building a website for your startup.
More specifically, Google anticipates that you will make your web and mobile apps mobile-friendly if you intend to drive traffic, leads, and customers from search engines.
Personalized communication should be used.
If personalised contact isn’t guaranteed, avoid outsourcing development. Why? Because once the job is finished, you’ll inevitably run into technical problems.
Understanding the time zone difference will help you decide when to outsource your services and who to place in charge in order to ensure smooth communication.
It would be wise to know when to send emails, make calls, or submit support tickets if you were located in California and were employing an agency or freelancer in Johannesburg, South Africa.
Don’t forget to take into account intellectual property.
What powers do you have over the assets in your mobile apps? Although I’m not a lawyer, I have discovered that some legal systems show little to no regard for intellectual property, such as software.
You might be interested to know that according to projections, 61 percent of the software used in the majority of Asian nations and 58 percent in India is pirated. How many of these offences have given rise to legal action? How many of those court cases have actually gone to trial?
Having said that, it is your duty to protect your intellectual property from exploitation and theft when outsourcing development (web, app, software, etc.). Therefore, establish those restrictions by writing contracts and nondisclosure agreements that the freelancer or agency must execute and abide by.
Take into account the unique feature of your software or other products.
Some sensitive situations should never be delegated to a third party. Why? Because you don’t want other people to sabotage your advantage when discussing a key competency—a key good or service that distinguishes the business.
Trade this with additional caution because it is your company’s “secret sauce.” Consider hiring an internal developer to handle the job if you really want to finish it.
You might want to outsource operational products like reservation systems or process automation, but keep your mouth shut when it comes to artistic products like consumer games, chip-design software, or architectural rendering. On these within the company.
Get frequent updates on the development of your business.
Your company is under your authority. Therefore, avoid following the example of all the other CEOs and founders who completely cede control of their company’s growth to a third party. Not optimal at all.
Given how crucial it is to outsource development, you must receive frequent reports to stay current on all goings-on.
Don’t limit your attention to the final product, such as the usable software. Instead, take part in the ongoing growth. Give advice, respond to queries, and make recommendations. The procedures themselves will teach you a lot more than the final product.
You might decide ineffectively if you are unaware of software failure or even a minor detail about app development.
Receive what you paid for.
Be careful not to believe that obtaining cheaper services is the best course of action during any stage of your startup. I am aware that you want to cut costs, and that is crucial: The reason why 46% of companies fail is that they run out of money. Particularly, 80 percent of projects fail because they don’t achieve their predicted ROI.
You should always remember, though, that you get what you pay for. That is a reality. And I’m not particularly advocating that you hire at a premium.
The bottom line is that you should pick freelancers or businesses that have the necessary expertise, modern tools, and skills to handle your job. When outsourcing the development of your software applications, at the very least, pay the standard rate in the field.
Conclusion
Consider outsourcing to be your secret weapon in a world where being innovative, productive, and persistent are necessary if you want to stand out from the crowd. Don’t give up if you’ve attempted it before but didn’t have the desired outcomes.
Use the seven-item checklist mentioned above. Of course, you don’t have to apply everything at once, but have the self-control to occasionally use these suggestions. By doing this, you can be confident that when you outsource development, your startup is in capable hands.
