Do you seek venture capital to fund your startup?
Or do you keep things small and grow slowly & steadily?
There are many challenges that tech startups face. Recently, we wrote about lessons that we have learned from developing 2000+ mobile apps. But since then, we’ve been thinking and realized that all startups face various challenges.
Whether you have tech skills or not, there are many reasons that make IT outsourcing a smart move.
First of all, IT outsourcing is a great way to get things done when you’re starting out. It gives you access to the skills that you need to get things done, and when you need it.
However, sometimes it can become hard to know what you can outsource as a startup, or how to find the best outsourcing company.
You might have heard of others using IT outsourcing to get things done but it may seem hard to know how that could help your startup.
So, to help you understand IT outsourcing better, we’ll see how successful startups use IT outsourcing.
Successful Startups Use IT Outsourcing As a Growth Hack
First thing we want you to know is this advice given by Asad Khan, Founder of ePlanet Communications, on outsourcing: “IT outsourcing help startups innovate, improve speed to market and increase their bottom line.”
Startup founders may have big ideas, but they often lack the capital to hire dedicated developers as a full-time employees. So, to compensate, many startups use outsourcing as a cost-effective way.
In fact, a research conducted by IBM indicates that 27% of companies and startups outsource to reduce their expenses.
Today, to rise above your competitors in the startup market, you need to be agile, smart, and an innovative leader. But, even the smartest entrepreneur cannot be an expert at everything. And, even if you’re, there is simply not much time in the day to do everything that your startup requires.
This is why, successful startups recognize the value of using IT outsourcing as a growth hack strategy. In fact, IT outsourcing not only saves you the trouble of performing tasks outside of your expertise, but it also helps to cut down the cost of hiring full-time employees.
Furthermore, 53% of businesses use IT outsourcing to grow their businesses. Most of the startups usually have little capital to pay full-time employees. And by IT outsourcing, startups can save more while still gaining access to the right skills.
IT Outsourcing… Why It’s a Smart Move?
Today, the growth of the freelance marketplace has made outsourcing very feasible for startups. Following are the reasons that makes IT outsourcing a smart move.
- You have more time to focus on your core services.
- IT outsourcing can cut your cost by 30% says Telegraph.
- If the quality of work of one outsource company is unsatisfactory, you can easily switch to another best outsourcing company.
In fact, today’s well-known and popular businesses started with IT outsourcing.
Following are the few examples of startups that outsourced development in their early days and became successful businesses.
Scott Chacon, CIO of GitHub, actually met the GitHub CEO and co-founder Chris Wanstrath at a meetup on Ruby in San Francisco. Chris recognized that Scott had understanding of Gits, so Chris asked him to work as a freelancer. Scott then wrote the backend of Gist, the sharing feature of GitHub. The company may not have been this successful without him.
Jason Goldberg, founder of Fab.com, hired a software development company from India to built his eCommerce website. After starting out, he identified that his site’s requirements were more robust and to fulfill those requirements, he hired the app development company from India. Today, Jason’s company succeeded because of his skills at managing the outsourcing process.
In its early stages, Slack hired a design firm to refine its product design. MetaLab worked on Slack’s website and app, redesigned its logo as well, to create most of what Slack’s users see when they interact with its messaging service today.
These success stories demonstrate how IT outsourcing can provide affordable talent to startups when they need it the most.
The examples of Google, Amazon, and Apple had also showed us that just because a business starts in a garage does not mean it can’t grow globally. What matters these days is your ability to manage the outsourcing process and how quickly you’re able to do so.
And IT outsourcing isn’t just about keeping costs down, but it is also about building a lean business model that you can scale quickly when the time comes. This is why having IT outsourcing as a tool that can help you get on top is a smart startup move.
This page was last edited on May 28th, 2020, at 5:59.