Is Outsourcing Important For Startup Product Development in 2018?

Startup Product Development

Outsourcing For Startup Product Development

It’s the ideal time for tech Startup. The biggest question they might be facing is whether to go for in-house development or outsourcing the project to a 3rd party company. Well, that is exactly why we are going to explore the significance of outsourcing for startups when it comes to product development in this article.

When it comes to outsourcing product development to a 3rd party company, you have plenty of choices before you. But we can see that traditional idea is that outsourcing is only meant for enterprises. There is no hard rule like that at all. There is nothing stopping startups from outsourcing their product development.


Read More  How Scrum is Best Using Agile Development Methodology?


What makes outsourcing so important?

When it comes to why we prefer outsourcing, there are plenty of reasons one can think of. However, we will start with the obvious reason – cost. When it comes to the success of any project, cost cutting is an important aspect. Startups always struggle with their budgets. Their budgets go haywire all the time. And outsourcing becomes relevant for the same reason.

As per some research, close to 90% of companies in US outsource their product development! As you can see, they prefer outsourcing in order to cut costs.

When you outsource your project, you will gain access to global talent tool for an affordable price. The difference in numbers can be really overwhelming. In fact, you can drastically reduce the cost beyond your expectation. When you hire talents locally, you will end up paying so much money given the standard payment in your country.


Read More  Do’s & Don’ts for Your Professional Website In 2018


Outsourcing is less risky

Yes, outsourcing your product development involves less risk. If you are coming up with a new product wherein the market is not tested, then outsourcing can be ideal choice to avoid the risks in introducing something new.

The good thing about an outsourced team is that they prefer working on flexible models. This reduces the risk considerably.


Outsourcing is faster

If you wish to come up with the product in a speedy manner, then outsourcing is the ideal choice. In turn, you will get enough time to market the product. Faster turnaround makes it really easy for you launch your product without any delays.

If you ask the people who outsource globally as to why they are doing it, a considerable percentage of them will point out that outsourcing totally fastens the process.


Read More  15+ Creative CSS 3 Animation Examples 2018


Technical expertise

As a startup, you are the new kid on the block. You lack expertise and experience. This might make way for a lot of mistakes and delays. In that case, it is better to outsource the project to a 3rd party developer. They have enough experience to deliver the project on time. And they will deliver the flawless version of the project, which you always envisioned.

Studies have shown that 15% of those who outsource do it for gaining access to a team with expertise.


You can focus on other important things

This is another reason for you to go for outsourcing. When you know that a capable team is taking care of your project, you can spend your time and energy on other important aspects related to the project.



The traditional viewpoint is that outsourcing is not for startups. But we have just seen that this argument has no validity. In fact, there are lot of benefits for startups when it comes to outsourcing. The most important thing you need to keep in mind is to hire a best software development company with enough expertise.

Editorial Staff

Editorial Staff at Xmedo is a team of Software development experts led by Aparajita Bhattacharjee.