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26. 6. 2023

6 min read

5 reasons why your startup should consider outsourcing development

In the lightning-fast world of software development, startups can't afford to wait around. Finding top talent and ensuring the swift creation of a high-speed, top-quality product is an undeniable struggle. It is a challenge that many startups face, tirelessly searching for the ideal solution to accelerate their development process.

Michaela Zubarova

Having a well-defined growth strategy is crucial for startups to maximize their limited resources and attain sustainable success. Among the various components of a successful growth strategy, outsourcing plays a vital role. It's a real game-changer, allowing companies of all sizes to streamline operations, tap into global talent, and focus on what they do best. Oh, and let's not forget the sweet cost savings it brings along!

In 2023, the outsourcing industry is poised to reach new heights. According to Statista, global spending on IT outsourcing could soar up to a jaw-dropping $430.50 billion! This figure isn't just a testament to the growing reliance on outsourcing but also a reflection of the immense value that it brings to businesses worldwide.

At Sudolabs, we've been crafting digital products since 2018. We've had the absolute honor of teaming up with an incredible mix of startups and established enterprises, all carrying a mind-blowing combined valuation of $1.5B. Our portfolio includes founders who have emerged from renowned accelerators like Y Combinator and Techstars, while scoring major funding from industry heavyweights like Andreessen Horowitz, Lightspeed, and Menlo Ventures. By engaging with both VCs and startup founders we've not only amped up our expertise but also obtained an inside scoop on the startup word. This has enabled us to grasp the intricacies of startup operations, their diverse needs across different growth phases, and the perspectives of investors when it comes to outsourcing. So, let's cut through the red tape and dive into the benefits of partnering with an outsourcing agency on your startup journey.

1. Easy up & downscale of the team provides much-needed flexibility

While outsourcing, you have the power to scale your technical and product management resources up or down easily. Meaning, you pay only for the team members that are currently relevant and needed.

Running a startup means operating in an ever-changing environment. One day, you need to validate your MVP's market traction. Next, you could require a sizeable team of developers to roll out a suite of features, a strategic move to penetrate a fresh business vertical. Or maybe you may need to cease all development activity and cut back on expenses as you prepare for your next round of fundraising.

Hiring full-time employees for these shifting demands can be a costly and time-consuming hassle. That's where outsourcing comes to the rescue, offering invaluable flexibility.

This approach is tried and true, with the success stories of our clients. Take EzTenda, for instance, who strategically halted all development before their fundraising round. Once the funding was successfully secured, our team seamlessly resumed from where we left off, continuing the development process without missing a beat while optimizing the resources.

2. Instant access to top-performers with a minimum managerial burden

Instead of relying solely on your in-house team, outsourcing lets you tap into a pool of highly skilled developers who excel in various domains like software development, mobile app development, and web development. It's like assembling a dream team without the hassle of training your own employees.

The beauty of outsourcing lies in the fact that these companies already have a wealth of industry experience under their belt. At Sudolabs, we've successfully delivered over 50+ products for startups & established companies, accumulating a ton of expertise along the way. By engaging an outsourcing partner like us, you get access to this combined knowledge, ensuring you're equipped to tackle development challenges from a comprehensive perspective.

In other words, you don't only work with particular engineer knowledge, but you work with knowledge of the entire company.

So, instead of trying to do it all on your own, why not leverage the expertise of outsourcing companies?

3. Effectivity & speed (time-to-market)

One of the coolest perks of outsourcing is the seamless teamwork that happens between the involved teams. Outsourcing teams often have a ton of experience working together on past projects. They understand each other's needs, communicate like pros, and effortlessly join forces. This high level of alignment leads to a super coordinated approach, where the team's collective experience works like magic to deliver exceptional results.

Trust us, MVPs don't have to take ages to build. At Sudolabs, we aim for an 8-week cycle from the first idea to the final MVP validation. That means we're all about being nimble, saving time, money, and effort for both us and our clients. It's a win-win situation.

Besides hiring and onboarding your own crew can eat up serious time, often as much as five months depending on your team's scale. That's five months before you're hitting the ground running with your project. Isn't it better to jump into action right away?

4. Intensified focus on core business

By teaming up with an outsourcing partner to handle your technical development tasks, you're making a smart move to dodge the headaches and complications that often accompany managing in-house teams. It's a strategic decision that lets you reclaim your precious time and mental energy, allowing you to focus on what you're really good at. For instance, you’re an individual with profound expertise in LLMs. We can harness your skills to collaboratively create an exceptional customer-facing application. By seamlessly integrating this application with your existing infrastructure, we ensure that your focus remains primarily on building and refining the core model, without any distractions. Obviously, it also gets you more wiggle room to chat with investors, fine-tune the business model, brainstorm ways to make money, and dive into all sorts of cool stuff instead of stressing about what tech stack or tools to use.

5. Reducing the operating costs but increasing revenue

When it comes to costs, outsourcing offers startups a sweet deal. By tapping into a global talent pool, you get access to affordable services that work wonders for your budget. Plus, here's the cherry on top: outsourcing lets you keep full ownership and control over your business, without having to dish out equity to early employees before you've had a chance to properly evaluate their contribution & value they bring to the company.

But that's not all. When you outsource, you also dodge expenses tied to hardware, vacations, learning programs, and office space. You only pay for the actual hours worked by the outsourced team. At Sudolabs, we keep things super transparent, so you always know where your money is going. Outsourcing is the smart way to save money and make every penny count for your startup's success.

In a nutshell, outsourcing has become a secret weapon for startups in the software development realm. It offers you the power of flexibility, specialized expertise, and speedy product launches. By jumping on the outsourcing bandwagon, you can focus on what you do best, tap into global talent, and save some serious cash. It's the perfect recipe for startup success in today's fast-paced world, allowing you to shine and make a name for yourself in the startup scene.

If you need a ready-to-go & dedicated team of product managers, designers, and engineers - in just 2 weeks, we'll have the team ready for you. Drop us a line at [email protected].


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