June 17, 2019 Last updated June 14th, 2019 1,958 Reads share

Why Outsourcing is Essential for Startups?

Why Outsourcing is Essential for StartupsImage Credit:

Shortage of resources & experience are two factors that affect most of the start-ups as well as a small business.

It’s not easy to hire a developer with good experience & less salary.

Big corporations have adequate resources at their disposal and can, therefore, afford specialists for specific tasks.

But small businesses and start-ups do not have that luxury. They have to work with limited resources without any room for errors.

Therefore, it becomes imperative to maximize their limited resources.

One such option that allows this flexibility is Outsourcing.

Why Outsourcing is Essential for Startups?

Why is it Essential for Start-ups and Small Businesses to Outsource IT Services?

Nowadays, there is an acute shortage of affordable space for offices and workshops.

Commercial rentals have sky-rocketed and have virtually become unaffordable for small businesses.

For this reason, entrepreneurs prefer to run their business from their home itself. How?

Well, they do hire a team of offshore developers to get things done. This proves beneficial for their company as it is a cost-effective solution.

By saving up to 70% of the development cost, entrepreneurs investing more time & money to grow their business.

During the initial phase, start-ups do not have adequate experience for operating various business functions. In such a situation, availing the services of an offshore development center becomes a wise decision rather than hiring a local team.

Benefits of Working with an Offshore Development Team:

  • Your task will get complete within the given deadline.
  • You will enjoy a highly professional work environment.
  • No need for any benefits for offshore developers.

Let’s discuss various points that necessitate it for small companies and start-ups to consider IT outsourcing!

1. Saves Time and Efforts:

Proficient developers and coders are extremely hard to find in the IT industry.

Then, there are cases when the in-house team lacks coding knowledge. In this case, the company ends up hiring a sub-standard developer who might be a liability for the company.

Moreover, successful human resource employment involves many tedious steps. There must be a provision of compensation, benefits and bonus funds.

Furthermore, incentives are essential for retaining a full-time employee. This is a tiresome procedure which is avoidable while working with an offshore development center.

Established service providers have a large talent pool of experienced developers. In fact, these remote employees are acquainted with the latest trends & technologies in the industry.

You won’t need to provide any orientation to their personnel as they are fully ready to work from the word go.

This not only ensures the timely completion of work but also helps in saving a lot of cost & time.

2. No Need for Training:

When a company hires new employees, they need proper training. This is essential to familiarise them with the entire working procedure.

If you will hire developers with less experience, they may take a few months to be fully versed with their duties and responsibilities.

You will require a proper set of tools and process to train your employees!

On the other hand, if you will hire experienced developers, you have to end up spending a lot of money.

While, in the case of offshore development, their team members are experts in their domain.

They need no introduction with the entire team; they can start their work from the very first day.

This saves a lot of time and expenses which would otherwise have to be spent on training.

3. No Specialised Infrastructure:

Startups often have an idea but lack the essential knowledge & skills to implement it.

In the present era idea holds a far higher value than the actual product. And outsourcing has brought more value to this philosophy.

By outsourcing your web or mobile app development tasks to a company, you don’t have to worry about the tools & techniques required for the project completion.

Your offshore development partner is responsible for everything that is required to complete the project on time.

This allows the start-up to avail the benefits of the latest IT infrastructure, software and hardware without actually investing in them.

4. Assured Quality:

If you will hire developers from a reputed offshore development center, you can assume that the output delivered by your remote employees will match or exceed your expectations.

As your outsourcing partner has qualified personnel and latest infrastructure, the quality of services offered is going to be superior in comparison to in-house employees.

Moreover, if the quality delivered is not up to the mark, then your offshore team is bound by contract to incorporate the necessary changes as and when required.

This process can be repeated unless & until the desired level of quality is achieved.

5. Dynamic Demands of Human Resources can be Overlooked:

In a start-up, first of all, you form a team for producing a product or offering a service with minimum features for early customer satisfaction.

Then you will perform a rigorous check on the product & fix it for bugs before the launch.

But sometimes this process takes so much time that it is found out the customer outlook has changed since the last market research.

The offering should then be altered according to the latest market requirements.

To make amendments, you will need more people in your team, which may add more load to your company.

Whereas, in the case of outsourcing, your offshore team will be responsible for the dynamic changes.


Outsourcing bestows a company with many advantages in terms of time, money and efforts.

It holds special importance for start-ups and small businesses looking forward to scaling & get ahead of the competitors.

But companies should opt for outsourcing services that are not confidential in nature.

Mobile App development is one of the most outsourced services. So, if you are planning to outsource this IT service, you are in the right direction.

Just plan and execute the strategy carefully and see how outsourcing will hugely benefit for any business!

Hanna Norris

Hanna Norris

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