The document discusses considerations for startups outsourcing product development. It recommends outsourcing to access talent more quickly and at lower cost than building an in-house team. Choosing the right long-term partner is key - they should think and act as part of your core team. To succeed, treat outsourced teams as internal by setting clear objectives, providing feedback, and involving them throughout the development process. If done correctly, outsourcing can help startups hedge risk, improve efficiency and quality, and release products faster while reducing costs.
2. WHY OUTSOURCE?
★ If figuring out how to grow and effectively manage an in-house team seems like a huge obstacle
and will largely distract you from growing your business, it’s a good investment to join hands with
a reliable outsourcing partner.
★ Recruiting is like fishing, you need to go where there's fish and not too many fishermen.
★ You want to get to market quickly and can’t afford to waste months looking for a viable
developer and not make any progress.
★ If you do not have a stable demand signal, Ex: You need 5 developers for 6 months and 3 for the
next 2 months and 5 back again, an outsourcing partner can manage these risks for you.
★ Cost advantages of outsourcing cannot be understated. If you can get access to great tech
talent in an offshore location that is economically more viable, you should take advantage of that.
3. CHOOSING YOUR PARTNER
★ The right way is *not* to think of your remote team members as vendors, but as a key part of
your team.
★ Don't do fancy RFP to get agencies to bid for fixed price work - you'll get exactly what you'd
expect from such a relationship. it's very strategic to you, and it's just about money for the
vendor.
★ Instead, carefully select your *Partner*, and make them part of your core team.
○ Can they think like you?
○ Can they be your critic?
○ Can they point to where things could go wrong?
○ Can they handle the complexity?
★ Don't give too much weightage to cost unless that’s the most critical thing for you. There is
usually a good reason for the price difference - you get what you pay for. Hiring high-end
engineers will save you from horror stories.
★ If you choose the right *Partner*, you'll build a long lasting, high performing team that will create
true competitive advantage.
4. DOING IT RIGHT
★ Treat them like your team.
★ Set clear objectives. Clearly define important criterias for every phase.
★ Be available to address any questions or clarifications.
★ *Involve* them in the end-to-end development process and seek their inputs through the process.
★ Share your long term product roadmap and have them take pride in what they are building.
★ Provide and receive *two-way* feedback to make things work smoothly.
★ Empower them to take intelligent risks and demand excellence.
★ Encourage open, honest and transparent communication.
★ Recognize them and celebrate milestones with them.
★ Facilitate cultural alignment, send them swag, and meet them periodically.
5. BENEFITS OF OUTSOURCING, IF DONE RIGHT
Risk hedging
Increased Efficiency and Quality
Access to great Tech people
Improved Competitive Agility
Faster Product Release
Cost Reduction