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Key Benefits of Outsourcing Software Development for Startups
PUBLISHED ON - 7th August, 2024
PUBLISHED BY
Aditya Prem Sharma
Frontend Developer
Table of Contents
Introduction to hiring as a Startup
So you own a startup and thinking what will be the best way to get your product developed. There are lot of ways to get it done such as hiring developers, hiring freelancers or outsourcing development by going to an agency. You must be thinking that what method to choose to get the most value out of it right?
Outsourcing is the best solution when you want to focus on your business and you want the best quality product for your business. A good agency will always help you to scale up your business.
"The most successful companies are those that are really expert at hiring, training, and managing people. We are very good at outsourcing our weaknesses."
Let's see different types of hiring you can do for your next project as an entrepreneur:
Hiring Freelancers
Freelancers seem to be really affordable at first, but are they worth it for your startup? Well that depends on what type of product you are developing, the complexity and the bandwidth it will take to get it done. This type of hiring is beneficial for smaller projects like Business websites, NFT websites, Small template based apps, WordPress development, etc. It may not be suitable for medium to bigger sized projects as these usually require higher bandwidth and time commitment to get it done.
Let's see what are the advantages and disadvantages for hiring freelancers:
Advantages of hiring freelancers
- Cheaper as compared to hiring professionals.
- You have a lot of freelancers to choose from.
- Hire whenever and wherever you want
- You can get an experienced professional from any part of the world which can be helpful in some case.
- Best suitable for smaller projects like NFT websites, WordPress websites, Small business landing pages, etc.
- Probably the most flexible way to develop a product.
Disadvantages of hiring freelancers
- Many freelancers cannot handle many of the complex things alone which is necessary for the product where team effort is required.
- Maintaining a freelancers team can get really stressful and time consuming.
- Shifts focus from business growth to managing freelancers.
- They usually don't have much bandwidth to get the job done on time.
- You are mostly responsible to track things as many freelancers tend to work on multiple projects alone.
- You might need to hire multiple freelancers for different tasks like for UX Designer, Developer, SEO expert, Marketing expert and more hirings, which can increase your development time and cost as well.
- Not suitable for medium to big size projects.
- You should have the knowledge of what services you need from the freelancer you're hiring. You may need a proper consultation before hiring.
- Might be cheaper but not trustworthy as most of them are selling templates or the same product to all of the customers by customizing few things on the same codebase.
- You can often get bad quality product which can mess up the future product.
- Very rare to find a skilled professional.
Hiring Employees
So you have a product idea and you decide to hire people to get it done. This may not be a good idea for startups, as you are just getting started and hiring costs a ton of money. You must know whom to hire, what candidate is the best fit for the requirements, managing your team and many more things which can cost a lot of your time and money. Also, you just have an idea for now, until that idea gets successful in the real world and generate revenue, you should not spend a ton of money on hiring professionals. If you hire at lesser price, you will get a bad quality product respectively, that's how it is. So, until you have money to spend on multiple employees, it is best to not take this path.
Let's see what are the advantages and disadvantages for hiring employees:
Advantages of hiring employees
- You have full control over your developers and timeline.
- You can hire any professional to do your job at any cost.
- Can get the job done quickly if multiple people are working full time.
- This can be the most effective if you have the knowledge and budget to hire multiple professionals.
- Most suitable for bigger sized projects when you are generating ton of revenue.
Disadvantages of hiring employees
- Can get the most expensive among all methods.
- Maintaining all employees and your team can get really stressful and time consuming.
- Shifts focus from business growth to managing employees.
- You are responsible to keep track of things and manage your project and team as well.
- You should have the knowledge of what services you need from your employee.
- You may need a proper consultation before hiring if you don't have much knowledge in the relative field.
- Not suitable for startups who has small to medium sized projects.
Hiring an Agency
This blog was about showing the power of outsourcing. While other hiring methods are going to be more hectic for you to manage yourself while managing your business as well, outsourcing can be the best solution for you. You should focus on your core business activities so that your business can grow in the non-technical field.
Let's see what are the advantages and disadvantages for hiring an Agency:
Advantages of hiring an Agency
- Could be the most cheapest option for medium to large sized projects.
- You get a global talent pool of various professionals who can take care of different things required to scale the product.
- Best option if you want to scale your product further.
- Agency can take the responsibility of your product development while you mostly focus on your core business.
- Product development gets faster as multiple specialized people are working on the relative field of your project.
- Most trustworthy and reliable source to take for startups.
- Pay only for the services you want.
- You don't need much knowledge about development, you can get the best guidance for your product if you choose the right agency.
- Takes out a lot of burden from you, so you can focus on other aspects of your business.
Disadvantages of hiring an Agency
- Can be a bit costly for smaller sized projects.
- You need to choose the right agency that fits your requirements.
- It may require you to work with multiple agencies for different solution which can cost a bit more money.
- Sometimes you may need to align your availability with the agency's time of operation.
- May or may not be suited for smaller projects, depending on the type of product.
Whom should you hire?
We discussed most of the key factors for you so that you can make your decision wisely. In short we can suggest you what type of hiring you can do.
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