Why is outsourcing a boon for start-ups?

We belong to the age of start-ups. Every day, more and more start-ups are established across the world. The reason is simple, high potential and unlimited possibilities. However, there is also a close trend which can be seen in this way of work. According to a study by AMA, more than 80% start-ups fail within the first 3 years of their inception. Barring problems like internal conflicts, increased competition or natural & statutory causes, the biggest two reasons for them to fail are running out of funds and poor execution. This is something which, if handled properly, can be well avoided.

One of the best ways to go about in the beginning of a business is outsourcing the required manpower. This approach helps to bring many decisions under the control of the entrepreneur. Just to list a few, here are some major benefits of outsourcing software developers.

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Major benefits of outsourcing software developers:

1. The additional experience

‍Yes. Even more than the pricing factor, outsourced developers and development companies add their invaluable experience to the start-up. It’s always a bonus to find outsourced software developers who have previous experience of working on similar projects. Also, experienced outsourced developers are able to work with little or no monitoring, thus ensuring better outcomes.

2. Value for money

‍Of course, as a start-up, financial constraints are in plenty. Outsourcing development projects can take off the burden of paying monthly salaries and also paying the developers when the project is not in the development phase. Outsourced developers are paid by their working man-hours and thus, the project gets a definitive timeline. With the variety of options open, an entrepreneur can hire an experienced outsourced software developer for the price of hiring a fresher.

3. The mind-set

‍Probably not always, but in most cases, outsourcing projects help in the most unusual ways. While a hired employee might focus on the salary that they are receiving (apart from the corporate perks as well), outsourced developers focus on the project, as they are more concerned about getting the work done within the allocated time frame. Where an employee might be bargaining for the salary, outsourced developers or companies may be a bit lenient with their pricing, as they have the vision of the bigger picture.

4. Making most of the time

‍Outsourced software developers provide better time management options. Where an in-house employee might be working 7 to 9 hours a day, the productivity of an outsourced developer is more. Also, you can hire developers according to your working requirements as your scope of finding the right candidate broadens. Add to it the previous point of outsourcing an experienced developer, the entrepreneur need not micro-manage each part of development and can focus on other parts of his business.

5. Office spaces

‍Might seem a small problem, but for a start-up, it’s one of the most prominent hold-ups. Many a times, start-up office spaces are garages, attics, bedrooms and cafés. Hiring an in-house employee comes with the added expenditures of office furniture, systems and required software. When you outsource a developer, all these expenses are straight away cut-off from the list.

6. Micro-management

‍As a start-up, entrepreneurs tend to micro-manage each and every detail of the project. This may sometimes be detrimental for the business. Hiring an employee adds another task to be done. However, outsourcing developers, especially through companies, helps to avoid this mistake. In most of the cases, the outsourcing companies manage the developers and keep a tab on the progress of your work.

There are many other aspects which work in the favor of outsourcing the required help, for start-ups in their initial stages. However, these six top the list. Outsourcing to software companies can be seen as a smart entrepreneurial move for start-ups, at least during the inception stages.