Why Startups Should Outsource Web and App Development in the First Year

Are you a startup with a great idea to change people’s quality of life? But you don’t have the technical skills to realize all its features? No worries, this article is exactly what you need right now. We covered all the questions that you, as a startup owner, may have, primarily on the cooperation with outsourcing companies. Dive into and get a clear understanding of why such cooperation is a smart way to build both a successful business and a top-notch product. 

What challenges do startups face in their first year of development?

Working on a digital brainchild is a responsible and resource-consuming job. As it often happens, various issues may occur, connected with the technical and business sides. There is a lot to think about when you startup owner and you need to solve all, even the smallest, questions by yourself. Knowing them ahead helps you avoid some drawbacks and move towards a successful digital product confidently. 

In year one, here are some challenges you may run into as a startup owner:

• Startups often focus only on the idea at first, but don’t explore deeper whether the market is really ready for this product, whether it has a target audience, and how the product can solve their problems. Without this, it’s difficult to get the first sales.
• Unexpected expenses, taxes, and other legal issues arise.
• Keeping up with product development, marketing, sales, and support can be tough.
• It’s also challenging to find people with the right tech skills. And not just skills, but people who share your vision and are willing to work in conditions of uncertainty. 
• Very often, startups bet on a fast launch rather than the project’s technical aspects. Like code cleanliness, a testing phase, documentation, and so on. It results in slow further development and a complicated support process.
• Startups can choose an inappropriate tech stack for the product development that slows down its development in the long run, as well as its scalability.
• Connecting third-party services or updating technologies often causes system failures or conflicts.
• Lack of proper documentation and processes makes it hard for new developers to integrate efficiently, increasing the risk of mistakes.

Why is building an in-house tech team too expensive at the start-up stage?

Having a limited budget, the in-house tech team can only run down available funds without any guarantee of the final result. That’s why startups today prefer to choose outsourcing development teams with clear budget limits and determined workflows. 

Here’s why having an in-house tech team can be pricier for startups.

Recruitment and onboarding costs

Finding the perfect candidates may take some time and money, of course. This process is not so simple as it may seem, because it includes job postings, interviews, and onboarding. Double this work if you need a few devs at once. All in all, if in the end an employee quits quickly or is not a good fit – that’s a costly mistake.

Need for different skills

A single project may require front-end, back-end, mobile development, UX/UI, QA, DevOps, and project management. Hiring all these specialists at once is very expensive. Besides this, it took longer time, so it’s a risk not to go to market on time or let competitors outpace you with a similar concept.

High salaries and bonuses

Experienced developers, UI/UX designers, and product managers expect to get competitive pay. For startups, it means an extra expense point.

Infrastructure and tools

The team needs the latest working tools, PCs, licenses, cloud services, development environments, and so on. These are also additional costs, even before the product is released.

Operating costs

Team management requires HR, office space (if not remote), administrative support, and management. What does it mean? Yeah, another financial burden.

How can outsourcing help startups save money and optimize budgets?

IT outsourcing for startups lets businesses focus more on business development and hypothesis testing, without facing numerous technical issues. The dev team takes care of all the hard work, while you build a strong foundation for the product promotion, marketing, and sales. 

In the context of budget optimization, dedicated outsourcing services companies bring lots of advantages on it. First off, you don’t need to hire the whole dev team in the company’s workforce. Which means there is no need to allocate additional funds for salaries, bonuses, and other benefits. You only pay for the project that the hired team will do as agreed. For specific tasks, stages, or hours of work, helping you plan your budget accurately and avoid unexpected costs. The rest of the money goes toward the other important bits of the project. Without the need to ask for additional money from the investors. 

Another big advantage is that the hired company provides dedicated outsourcing services using its own tools and technologies. This allows startups to save on hardware and software purchases.

Since outsourcing companies have in-depth experience in various industries, there are fewer mistakes possible with your project. You don’t have extra expenses to solve the issues connected with industry-specific tasks and move faster to the final stage. 

Moreover, you can hire a team for a specific task, not for the whole development. This way, you save your money by not paying for the team’s downtime between sprints.

What benefits do startups gain from outsourcing to development companies?

Outsourcing software development gives startups the possibility to test the idea faster, minimize all the risks, and work with an experienced team that will handle all the tasks. While you put more attention on the marketing side. 

The biggest advantage is a faster time-to-market. The dev team can build an MVP, accelerating this process further. All you have to do is wait for the first feedback from early users and then take action according to them. 

Successful app development for startups requires balancing speed, quality, and flexibility. Experienced dev teams put all their tech skills and deep industry knowledge to give the product an extra edge. They already work in the same area, they know what issues may arise, and have an action plan to avoid all pitfalls. You basically get an extensive background that the team is ready to bring into your business success. That’s what really counts.

Additionally to this, you can easily change the team structure according to the project needs. Or in a case when it’s time to make extra improvements for the project scaling. Professional teams easily adapt to your requirements and deliver impressive outcomes. 

Why is outsourcing a strategic step toward scaling a startup?

Outsourcing totally transforms a startup’s mobile app or web development. From a complex challenge, it becomes a manageable process, helping startups build their product and business altogether. You have total control over resources and budget while avoiding overspending.

A startup can hire experienced professionals from an outsourcing company instead of spending months hiring, training, and retaining its own specialists. Typically, such teams have a wide set of knowledge in such technical areas as: 

• Backend and frontend development, 
• UX/UI design, 
• QA testing, 
• DevOps,
• Post-launch support.

Thanks to this approach, startup founders can focus more on business development, attracting investment, and strategic scaling into new markets. Meanwhile, the technical aspects are fully covered by professionals.

How does outsourcing accelerate time-to-market for web products and apps?

Outsourcing software development for startups brings the most in terms of faster time-to-market. It lets to involve an experienced team without spending time on recruiting and training. The dev team works on all project components, using proven approaches and the latest technologies to unlock the full potential of the final product. If there needs to be more experts to work on extra tasks – the team can handle this requirement with ease as well. All these in complex make it possible to build a cutting-edge startup following deadlines and even faster than you expect.

How does outsourcing reduce business risks?

Outsourcing reduces business risks, giving the possibility to rely on experienced specialists and proven processes. You seriously minimize all the potential risks by not putting all the weight on your small team’s limited skills.

Moreover, outsourced companies are well-oriented in compliance with industry standards and regulatory requirements. It’s a huge plus, because you will avoid fines, legal problems, and reputational damage after all. So outsourcing isn’t just a matter of saving resources; it’s also a matter of making business development more predictable and secure.

Which website and app development tasks are best suited for outsourcing?

An outsourcing company can help startups launch products fast, get expert help when it’s needed most, and minimize mistakes. But which tasks can be outsourced to bring the biggest benefits in the long run? These tasks include the following:

• Complete minimum viable product development (MVP). 
• Backend and API building.
• Integration with external services &payment systems.
• Mobile app development for iOS and Android. 
• UX/UI design and prototyping. 
• QA testing. 
• CI/CD automation. 
• Product security. 

This may be a full-service set or something specific that you need right now. Outsourced companies easily handle the things on the list above, adding more value and tech expertise to the finished product.

How can startups choose the best outsourcing partner in their first year?

The right choice of an outsourcing partner it’s a big step ahead in the whole development journey. This decision affects the product launch speed, its quality, and costs. We recommend focusing on the following essential factors.

Experience with the same projects and tech expertise. Highly important to cooperate with the company that operates in the same area as yours. This accelerates the development process significantly and minimizes extra expenses resulting from team mistakes. Also, check the tech stack the team works with, and whether will it be helpful for your project as well. 

Reputation online and clients’ testimonials. If the clients say “thank you” for the work done, it’s a clear sign that the company works on results and knows how to benefit the product. You can check this on platforms like Clutch or Sortlist to see what previous clients say about their cooperation and look through the cases to see what they look like. 

Flexibility and communication. Often, startups change requirements quickly, so a partner must be able to adapt to them. A big plus is when the team offers alternatives and collaborates effectively remotely. Discuss these points with the team while evaluating to understand their approach to work. 

Transparent cooperation terms. It’s important that the payment model is clear and defined in advance. Here, choose what is more convenient for you – pay for the entire project at once or separately for each sprint. Understanding exactly how much money the project requires makes your cooperation predictable, without surprises.

Conclusion

The first year is the most responsible and kind of nervous for startup owners. It requires a lot of your time and resources to transform the idea into a cutting-edge product with a strong potential to beat the competition. Fortunately, there are outsourcing companies here to help you with all the tech project side and bring value to your product. To the brainchild that will help people in their daily or professional lives. Such an approach lets you focus on the other startup side – marketing and sales. And at the end, everyone benefits from this cooperation. 

If you’re a startup with a big idea that can change people’s lives, but you’re not sure where to start and what technologies to use – we’re here to support you. The TRIARE team has a broad experience working with startups, so we already know what to check first and how to set up further work. Get a chance to create something that people will value and stand by!