
Top 5 Reasons to Use Product Development Outsourcing for Your Startup

As a startup owner, you’re probably trying to find ways to save money and time while still developing a great product. One way to do this is through product development outsourcing. In this article, we will explore how outsourcing can save costs, provide access to expertise, accelerate time-to-market, offer flexibility and scalability, and allow startups to focus on their core business.
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In today’s fast-paced business environment, startups need to stay ahead of the curve and develop innovative products that meet customer demands. According to the latest research, the business process outsourcing market is expected to grow 8.9% between 2023 and 2030.
Outsourced product development can be a valuable strategy for startups that may not have the internal resources or expertise to develop a product in-house. Outsourcing your product development can help you achieve your goals while avoiding the cost and time commitments of hiring and training an in-house team. By outsourcing, startups can access specialized skills and resources, reduce costs, and accelerate their time-to-market.
Outsourced product development refers to hiring an external company to develop a new product or software for your startup. It involves outsourcing the product’s design, development, testing, and implementation to a third-party vendor specializing in product development. The team in the outsourcing company work together to ensure the product is delivered on time, taking into account budget, and to the highest quality standards.
A lot of worldwide companies have successfully used outsourced product development. For example, a team of outsourced developers developed the popular workplace messaging app Slack and the world’s largest code-hosting platform GitHub used outsourcing to develop its mobile app.
Launching a new product or software can be a daunting task for startups.
They have two options: in-house development or outsourced product development. In-house development involves building a product using internal resources, while outsourcing involves hiring a third-party vendor to develop the product. While both approaches have advantages and disadvantages, outsourcing product development can provide startups with several benefits over in-house development.
Outsourcing | In-house |
Cost and time for your app development | |
Outsourced product engineering eliminates the need for significant investment in recruiting, training, and managing an in-house team, | In-house software development can be more costly and longer, as it requires significant investment in infrastructure, equipment, and salaries. |
Experience and expertise for your app development | |
Outsourced product development provides access to a wider pool of talent and expertise, including specialized skills and experience that may not be available in-house. Outsourced product development services offer startups the ability to work with external vendors who have a proven track record of delivering high-quality products on time and within budget. |
In-house software development may be limited to the skills and expertise of the internal team members and may require significant investment in recruiting, training, and retaining top talent. |
Control of your app development | |
Outsourced product development can raise concerns about the level of control that startups have over the development process. But choosing a reliable outsourcing company can help with these challenges. | In-house software development provides startups with more control over the development process and intellectual property. |
According to Deloitte research, startups choose outsourced product development, because it is cost-efficient, requires significant time, resources, and expertise to create a product that meets the needs of the customers and stands out in the market.
Let’s take a look at all the reasons why to outsource in detail.
Outsourcing product development can significantly reduce costs for startups. By hiring an external team, startups can avoid the expenses associated with hiring and training an internal team, as well as the costs of equipment, software, and workspace. Additionally, outsourcing can provide access to cost-effective resources and materials.
For a startup owner, hiring an in-house team of developers would be costly. Instead, an outsourced product development company can save you money on labor costs, office space, and employee benefits, while still getting the high-quality development services you need.
Outsourcing product development can save you money in various ways:
Read more about pros and cons of in-house and outsourcing software development.
Outsourcing product development can provide startups with access to specialized skills and expertise that may not be available in-house. External partners can bring experience and knowledge from a variety of industries, as well as the latest technologies and best practices for your software development.
Outsourcing product development can provide startups with access to expertise in areas such as:
If you’re a startup owner in a remote location with limited access to highly skilled software developers, outsourcing product development would give you access to talented developers from around the world for any kind of software development you need. You could work with a team in another country with specialized knowledge and experience in developing software for your industry, ultimately improving the quality of your product.
One of the main benefits of outsourcing product development is the ability to accelerate time-to-market. With a dedicated team of experts working on your software development, you can move quickly from ideation to launch, and get your app into the hands of customers faster. This can be especially important in industries with fast-paced innovation cycles, where speed can make the difference between success and failure.
Developing the app in-house would require recruiting and training a new team, investing in infrastructure, and navigating the learning curve of a new technology stack. Alternatively, outsourcing the development to a specialized company can provide the expertise and resources needed to quickly build and launch the app. In this way, the startup can get its product to market much faster than if it had tried to build the app in-house.
If you have a limited budget and a tight deadline for launching a new product. By outsourcing product development, you can work with an experienced team that can develop your product within a shorter time frame. They can also take care of product testing, ensuring that your product is bug-free and meets the necessary quality standards.
Anna VoznaClient Success Manager, Glorium Technologies
One of the biggest advantages of outsourcing product development is the ability to scale up or down as needed. Startups often experience fluctuations in demand for their software, which can result in the need for additional resources. By outsourcing product development, startups can quickly and easily scale their teams up or down to meet the changing demands of their business.
Adobe has been able to scale its software development efforts quickly by engaging with outsourcing partners. When facing increased demand or working on new product releases, they can easily ramp up their development teams by partnering with external experts. Another example is Microsoft. By outsourcing software development, Microsoft can tap into additional resources and expertise beyond its in-house teams. This outsourcing of software allows them to quickly scale up their development efforts, allocate specialized skills to specific projects, and meet increased demand effectively.
Read more about pros and cons of choosing an outsourcing team from Ukraine vs India.
By outsourcing product development, startups can focus on their core business functions, such as marketing and sales, while leaving product development to the experts.
The popular file-sharing and storage company Dropbox used outsourcing to develop its mobile app. The company worked with a team of developers to build its Android and iOS apps, which are now used by millions of users worldwide. By outsourcing the mobile app development, Dropbox was able to focus on its core business of file storage and sharing while still providing a high-quality mobile experience for its users.
By partnering with external development teams, Netflix prioritizes the improvement of its streaming platform and user interface, ensuring a seamless and immersive experience for its subscribers. Outsourcing software and app development enabled Netflix to allocate more resources to content acquisition, production, and curation. This allows them to continually expand their library of movies and TV shows, satisfying the diverse preferences of their global audience and introducing new features and improvements to its software and app at an accelerated pace.
While outsourcing product development can provide numerous benefits for startups, there are also several challenges that they may encounter. Some of the most common challenges of outsourced product development include: communication barriers, quality control, intellectual property concerns, project management challenges, cultural differences.,
By being aware of these challenges and taking proactive steps to address them, startups can ensure that their outsourcing partnerships are successful and deliver high-quality software that meets all needs of the customers.
Choosing the right outsourced product development company is critical to the success of your software and requires careful consideration and research. The Glorium team has provided some tips to help you choose the best outsourcing partner.
By following these tips, you can find an outsourcing partner with expertise, experience that aligns with your startup’s needs and goals. Read more about how to choose the right vendor for outsourcing programming.
As an IT outsourcing company with over a decade experience on the market, Glorium Technologies provides a wide range of outsourced product development services that can help startups build high-quality products efficiently and cost-effectively.
Our team of experts can work closely with startups to understand their needs, develop customized software, and deliver high-quality work that meets their business goals. As outsourcing product development can be quite overwhelming. That’s why we make the process as seamless and transparent as possible. The Glorium team is committed to providing regular updates and maintaining open lines of communication throughout the product development lifecycle. We also follow strict quality assurance and testing processes to ensure the final product meets the highest quality standards.
Are you looking to build a cutting-edge product but finding it challenging to keep up with the ever-evolving technology landscape? Contact our managers to discuss all details.
Outsourced product development refers to hiring external companies or individuals to handle the various stages of developing a product, from design to production.
Outsourcing can help startups reduce costs, access specialized expertise, speed up time-to-market, increase flexibility and scalability, and allow them to focus on their core business activities.
Some common outsourcing services for product development include design, engineering, prototyping, manufacturing, and logistics.
Outsourcing can help startups save costs by reducing overhead expenses, avoiding the need to hire and train in-house staff, and leveraging lower labor costs in other countries.
Startups can access a wide range of expertise through outsourcing, including design, engineering, software development, marketing, and supply chain management.
Outsourcing can speed up time-to-market by allowing startups to leverage the expertise, resources, and experience of external partners, who can help them develop and launch their products more quickly and efficiently.
Outsourcing can provide startups with greater flexibility and scalability, allowing them to quickly adjust to changes in demand, expand their product lines, and enter new markets.
Startups can maintain focus on their core business activities through outsourcing by delegating non-core functions to external partners, allowing them to concentrate on their main value proposition and competitive advantage.
Some best practices for outsourcing product development include conducting thorough due diligence on potential partners, establishing clear communication channels and expectations, and managing the outsourcing relationship closely.
Some potential risks or drawbacks of outsourcing for startups include loss of control over the development process, quality issues, communication barriers, and potential intellectual property disputes.
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