Why IT Outsourcing Is a Powerful Startup Tool

Olha Polishchuk

Content manager

Have you ever wondered how many great startup ideas actually make it to the end? According to the statistics acquired from different sources, only 10% of startups do survive. Other 90% have failed because of many different reasons on their way.

Obstacles are awaiting for startups. Having a great idea is one thing, but having enough experience and background business knowledge is another continent. 

Startup failure is a actually good sometimes

When you have a task to launch a product, you may ask yourself: but how do I do that? The answer to this is the outsourcing

Though outsourcing solves your main problem, it cannot make your startup great without your own co-operation. 

Need to start a project or rebuild the existing one?

This information will be helpful for those who want to launch an IT startup and for those who want to split their corporate development tasks.

What is outsourcing?

Let’s imagine that you need someone to do something for you. Or, in co-operation with your team because they are 100% loaded with work to do and they still don’t make it in time. That is what outsourcing is.

Outsourcing services vary from sector to sector. The main feature is that it means providing any service to a client. You can find designers, developers and many other guys who are eager to help you. 

Here, we do speak about the IT sector, though the information on this page is suitable for any kind of services.

If you are not sure whether you need the service and how the team will be, then look at the following. People who outsource they don’t just put a check on their to-do list. They involve in the process and try to understand your pain, the problem you want to solve. 

The outsourcing team wants the same thing as you do: bringing your idea to life. This team is not only responsible for developing your idea. They act as parents for your startup. A good company will always seek the opportunity to improve your startup and they come with the best solution suitable just for you. 

 What are the core steps of an outsourcing process?

Basically, the process of developing something can be split into the next steps.

  • Thorough planning

You have a dream. Great. Now, you have to plan it. 

If you want to launch an Android application, for example, consider the steps and the tasks you need to be solved. Who will help you to launch it? What tools will be used? How the app is going to be promoted? What is the target audience?

Think about these things since the very beginning, and you won’t deal with lots of unnecessary problems with the future process.

  • Establishing contact

You meet with the representatives of the team you want to hire to build your app. You make phone calls, you text each other, you discuss the details. Everything done in this period must lead to a great relationship and partnership. 

  • Contract agreement 

Signing a contract is definitely the thing that fixates everything discussed, including payment, services, deadlines etc. 

  • Testing

Testing usually includes development with constant testing and a real market test. Even so, this may vary from one outsourcing company to another. 

MVP needs market testing because getting instant feedback about your product tells which product path you have to take to improve it. 

  • Co-operation and Support

An outsourcing company is always ready to help you improve your startup. They suggest some corrections, fixes, better promotions (if applicable) etc. 

Your journey doesn’t end on the development. The product is finished when it has seen accurate testing. It is finished when it has seen improvements. When you look at the product you’ve come up with, you have to feel fully satisfied with what you see. 

Business coopertation in IT

That is why developers/ designers/ other outsourcing providers are, first of all, the same creators as you are. They want to see your product brilliant just as you want it. 

What are the possible obstacles that may prevent your business from flourishing and how to cope with them?

  • Budget Estimation

People often tend to underestimate the effort they are going to put into a project. Did it happen to you that you finish by spending five hours on a thing supposed to last no more than two? The same thing comes to a startup cost.

The two whales of your startup are time and importance. So, imagine you have $20k for a really cool project. You hire a team of professional developers and designers and you set the deadline like in 3 months. No one says that’s impossible. But, sometimes you may come to the point where the effort spent on your dream is way bigger than you thought.

Of course, clients demands are number one and outsourcing companies just have to put that on their priority list. Though, sometimes, the choice between the two whales has to happen.

You may need to decide: either you prolong the time needed for the development of your startup (web application, Android/ IOS etc), or you exclude some features you wanted to see in it. 

Our piece of advice is rather simple: do not harness your product’s quality. No one wants to see (and use) a product with completely bare bones. If you see your product in these colours - do it. Although, a flexible MVP case may be just for you.

  • Human Resources

Entrepreneurs may underestimate the need for human resources when it comes to their own project. Even though they can fully understand the number of people needed for the startup (developers, designers, managers…), the problem they may face lies in the lack of professionals. 

We agree that it is hard to find the right people for your demands, but there is no lie in the fact that somewhat about 80% of team members are found in the partnership network.

  • Wrong tactics

Putting 80% of effort in a marketing campaign. Putting 90% in the development and only 10% into marketing. Both options are quite wrong. The balance between these two things is the aim you want to achieve. 

But before you decide how to do that, ask yourself a question: what do you expect from your startup? To bring you profit? To make you famous, or simply solve the human needs and make their lives better? The answers to these questions will help you plan your budget reasonably and set legit tasks. 

  • Lack of Feedback

If you have already launched an MVP (a minimum viable product), you need to gather users’ feedback and analyse it for further improvement. Listening to your audience is the key concept for your product to live. 

If your startup is still in the state of a dream, you should tell exactly your outsourcing team how you want to see it, what it should be like. On one hand, you’ll set definite tasks and requirements and you’ll be more than satisfied with the result. On the other hand, you will get improvement suggestions and pieces of advice. Isn’t that incredible?

  • Co-operation

Humans are humans. We tend to forget things. When it comes to business co-operation, it is crucial to stay in touch and discuss all the problems. 

When there is a mutual interest, you are more likely to reach success and stay satisfied. 

Stay in touch. Ask questions. Comment on the job done. A two-way interest is a prevailing means.

So, what are the advantages of outsourcing for your product?

First of all, that is the efficiency. The work given to professionals has much higher chances to succeed. Moreover, good specialists usually focus on one niche only.

Then, outsourcing allows you to concentrate on your core tasks and to hand over responsibilities. 

Cost savings come in handy when we talk about B2B outsourcing as well. Apart from just saving money, outsourcing allows you to split the budget better. You can out the saved budget into advertising, for example.

If you understand that your business needs good IT services, then an outsourcing company is definitely your way out. It grants a professional solution to even the most complex technology problems.

And if you are still not sure what to start with, previously we talked about the core steps of launching a great startup.