Outsourcing Software Development for Startups: Should or Shouldn’t?
Outsourcing is a transfer of certain types or functions of industrial entrepreneurial activity to another company operating in the required field on the basis of a contract.
Outsourcing is a revolutionary tool for businesses in the modern world. Giving non-core processes to a third-party, the company becomes more specialized and focuses only on those processes in which it has expertise, that is, it focuses on the core business. In addition, it saves a lot of time and money to the company.
Just imagine, you sew handbags or give martial art classes and your business needs a web site or an application. With the help of the outsourcing companies you wouldn’t need to learn to do it yourself or try and hire a full-time specialist. We don’t even mention the profit of big companies that are always in need of solving all types of problems with the use of outsourcing.
Nevertheless, some people are still doubtful about trustworthiness of outsourcing. As everything in life, one’s attitude depends on whether one had good or bad experience. So let’s see if it’s a good idea to hire an outsourcing software development team for your startup or existing business.
Pros and cons
Why should you go for it:
The cost of an outsourcing service for an organization is sometimes lower than the costs associated with paying wages, salaries, vacation cards, sick leave, travel expenses, etc. In addition, outsourcers do not necessarily need a workplace, the necessary tools and equipment or special clothing, etc.
High quality services
As these or other outsourcing services are executed by organizations with the appropriate profile of activity, the employees of these organizations have high qualification and experience in this or that qualification. This order of things is much more attractive than the recruitment of a specialist who will take time to confirm his qualification.
There is no minimum payment
Legislation does not establish the need to observe the minimum wage threshold.
Periodicity of payment is established independently
In an outsourcing contract, you can set any frequency of payment for services provided, in contrast to wages, which is paid monthly.
What should you be cautious about:
Risk of information leakage
By outsourcing any function, the organization risks disclosing valuable information that can affect the well-being of the organization. So, for example, giving accounting and tax accounting for outsourced teams, your client base can get in the field of view of a third-party organization, which with a certain interest can be given to competitors. By outsourcing the management of personnel matters, an organization may lose valuable employees, which can be enticed by the same outsourcing organization.
Necessity of control
There is a possibility that an outsourcer cannot deeply understand the specifics of the work of the serviced organization, therefore, it is advisable for the contracting authority to have full-time employees who help in adapting the outsourcer to a new location and controlling his actions.
Due to the remoteness of the outsourcer it is not always possible to promptly agree working moments, to transfer or sign documents, to discuss fundamentally important issues.
As you see, it’s all about the experience and the trustworthiness of the outsourced team or a specialist.
A good outsourcing team is easy to verify and easy to control. Its work should be transparent, and the most important: outsourcing can and does produce good-quality products.
As an example, with LeadIT you can choose a convenient format of work, which will give any customer an opportunity to keep a hand on the pulse and to see all the changes to the project on a daily basis. Their team constantly keeps in touch (during their working hours) and warn about private and public holidays, etc.