Should a Startup Outsource Software
Development?
Conclusions after running a concierge MVP for the last 3
months
Disclaime...
an outsourcing solutions for developing parts of its software:

1. Reduced costs
As expected, the main reason for choosing...
product faster. Besides that, for any contract from a certain value up, we’ve always
encouraged the client to create an in...
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Should a Startup Outsource Software Development?

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Disclaimer: I started writing this article by speaking about outsourcing in general, but I soon found out that I became rather nasty toward the current outsourcing solutions (which, I believe, don’t work and cause big troubles for some companies) and that would not have helped anyone. So, I reconsidered and looked at what we’ve been doing for the last few months and take some of the most relevant bits from this experience. Therefore, I kind of talk about 3seeds.co.uk and our experience in matching startups with teams from our network. So, this article may sound a bit like a sales pitch. It partially is, but you know now and you can spend the next three minutes doing something else if you find that totally unacceptable.

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Should a Startup Outsource Software Development?

  1. 1. Should a Startup Outsource Software Development? Conclusions after running a concierge MVP for the last 3 months Disclaimer: I started writing this article by speaking about outsourcing in general, but I soon found out that I became rather nasty toward the current outsourcing solutions (which, I believe, don’t work and cause big troubles for some companies) and that would not have helped anyone. So, I reconsidered and looked at what we’ve been doing for the last few months and take some of the most relevant bits from this experience. Therefore, I kind of talk about 3seeds.co.uk and our experience in matching startups with teams from our network. So, this article may sound a bit like a sales pitch. It partially is, but you know now and you can spend the next three minutes doing something else if you find that totally unacceptable. Is technology outsourcing a solution for startups? The decision to outsource software or product development does not come easily for many startups. Overcoming the trust and control issues is not handy sometimes, especially when you are in a growing frenzy and the most valuable asset is your team. We definitely can understand that and in many cases it is valid argument. But there are some situations where a startup can hack development by virtually creating development power machines from other’s resources. It’s a model close to the cloud hosting logic and allows a small team to be nimble and effective in creating their technology solutions. 3 main reasons for choosing outsourcing for a startup From our experience in working with a few dozen startups since we launched 3seeds last November, we can draw on three main reasons why a startup would/could choose
  2. 2. an outsourcing solutions for developing parts of its software: 1. Reduced costs As expected, the main reason for choosing outsourcing solutions is a cost issue. But, we found out, it’s more than simply lower prices: it’s always been so far a matter of balancing the costs with the quality an outside software team can bring to the business. And, as it is the case for 3seeds solutions, when you can save between 30% and 50% on your product development compared to in-house or local solutions (and basically receive the same quality), it really becomes an interesting opportunity for a startup. 2. Access to talent and specialised skills Especially in SF and London these days, we all know how difficult it is to find good technical talent. And when you find it, you usually have to sell your liver to be able to pay for it. Now, being a startup can add an additional layer of complexity into this mix, as the moneys are scarce and the stability is something to be established yet. But a startup still needs to develop the products, even with black magic. Thing is, you may not even have to learn voodoo to make it, as in other parts of Europe there is a thriving ecosystem of strong technical talent and specialised skills. For instance, right now, 3seeds allows you to avoid competing with other startups recruiting locally by gaining access to well-trained, highly-educated IT professionals in Central and Eastern Europe. And 22 teams with more than 1200 specialists in total can be a good pool to find a good fit there. 3. Flexibility and speed A startup is basically a high speed vehicle not necessary knowing where it’s heading. And it is fine to be like this, we say. But that instantly means that speed matters, especially when developing and launching your products. Flexibility means simply that you have a few options to work with a team: from a time-based approach, where you are quoted on the time spend on the project by the team, to having a dedicated team to work only for your project for a pre-established period of time. Some of the teams can even visit your offices and work from there, along with you. The whole point here is that their experience allows them to focus on development so you can ship your
  3. 3. product faster. Besides that, for any contract from a certain value up, we’ve always encouraged the client to create an initial test project for the chosen team, get it developed and measure the satisfaction metrics, before committing to a bigger investment. And it works. I end this here, even though there may be other insights into this. But for now, let me hear about your experiences in developing your software with an outside team. Funky stories are definitely welcomed!

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