SlideShare ist ein Scribd-Unternehmen logo
1 von 3
Downloaden Sie, um offline zu lesen
Should a Startup Outsource Software
Development?
Conclusions after running a concierge MVP for the last 3
months
Disclaimer: I started writing this article by speaking about outsourcing in general, but I
soon found out that I became rather nasty toward the current outsourcing solutions
(which, I believe, don’t work and cause big troubles for some companies) and that
would not have helped anyone. So, I reconsidered and looked at what we’ve been doing
for the last few months and take some of the most relevant bits from this experience.
Therefore, I kind of talk about 3seeds.co.uk and our experience in matching startups
with teams from our network. So, this article may sound a bit like a sales pitch. It
partially is, but you know now and you can spend the next three minutes doing
something else if you find that totally unacceptable.

Is technology outsourcing a solution for startups?
The decision to outsource software or product development does not come easily for
many startups. Overcoming the trust and control issues is not handy sometimes,
especially when you are in a growing frenzy and the most valuable asset is your team.
We definitely can understand that and in many cases it is valid argument. But there are
some situations where a startup can hack development by virtually creating
development power machines from other’s resources. It’s a model close to the cloud
hosting logic and allows a small team to be nimble and effective in creating their
technology solutions.

3 main reasons for choosing outsourcing for a startup
From our experience in working with a few dozen startups since we launched 3seeds
last November, we can draw on three main reasons why a startup would/could choose
an outsourcing solutions for developing parts of its software:

1. Reduced costs
As expected, the main reason for choosing outsourcing solutions is a cost issue. But, we
found out, it’s more than simply lower prices: it’s always been so far a matter of
balancing the costs with the quality an outside software team can bring to the business.
And, as it is the case for 3seeds solutions, when you can save between 30% and 50% on
your product development compared to in-house or local solutions (and basically
receive the same quality), it really becomes an interesting opportunity for a startup.

2. Access to talent and specialised skills
Especially in SF and London these days, we all know how difficult it is to find good
technical talent. And when you find it, you usually have to sell your liver to be able to
pay for it. Now, being a startup can add an additional layer of complexity into this mix,
as the moneys are scarce and the stability is something to be established yet. But a
startup still needs to develop the products, even with black magic. Thing is, you may
not even have to learn voodoo to make it, as in other parts of Europe there is a thriving
ecosystem of strong technical talent and specialised skills.
For instance, right now, 3seeds allows you to avoid competing with other startups
recruiting locally by gaining access to well-trained, highly-educated IT professionals in
Central and Eastern Europe. And 22 teams with more than 1200 specialists in total can
be a good pool to find a good fit there.

3. Flexibility and speed
A startup is basically a high speed vehicle not necessary knowing where it’s heading.
And it is fine to be like this, we say. But that instantly means that speed matters,
especially when developing and launching your products. Flexibility means simply that
you have a few options to work with a team: from a time-based approach, where you
are quoted on the time spend on the project by the team, to having a dedicated team to
work only for your project for a pre-established period of time. Some of the teams can
even visit your offices and work from there, along with you. The whole point here is
that their experience allows them to focus on development so you can ship your
product faster. Besides that, for any contract from a certain value up, we’ve always
encouraged the client to create an initial test project for the chosen team, get it
developed and measure the satisfaction metrics, before committing to a bigger
investment. And it works.
I end this here, even though there may be other insights into this. But for now, let me
hear about your experiences in developing your software with an outside team. Funky
stories are definitely welcomed!

Weitere ähnliche Inhalte

Mehr von Vision Concepts Infrastructure Services Solution

Mehr von Vision Concepts Infrastructure Services Solution (20)

How to Change the IT Architect Hiring Practice
How to Change the IT Architect Hiring PracticeHow to Change the IT Architect Hiring Practice
How to Change the IT Architect Hiring Practice
 
NetApp To Offer Integrated Storage Array And Virtualization Software
NetApp To Offer Integrated Storage Array And Virtualization SoftwareNetApp To Offer Integrated Storage Array And Virtualization Software
NetApp To Offer Integrated Storage Array And Virtualization Software
 
Big Data - Security Concerns
Big Data - Security ConcernsBig Data - Security Concerns
Big Data - Security Concerns
 
Apple adding hundreds of new engineers and operations staff in China to speed...
Apple adding hundreds of new engineers and operations staff in China to speed...Apple adding hundreds of new engineers and operations staff in China to speed...
Apple adding hundreds of new engineers and operations staff in China to speed...
 
Data Analytics and the Ubiquitous Internet of Things
Data Analytics and the Ubiquitous Internet of ThingsData Analytics and the Ubiquitous Internet of Things
Data Analytics and the Ubiquitous Internet of Things
 
Citrix UniPrint NetGain Case Study
Citrix UniPrint NetGain Case StudyCitrix UniPrint NetGain Case Study
Citrix UniPrint NetGain Case Study
 
Uniprint Infinity Citrix Printing Solution
Uniprint Infinity Citrix Printing SolutionUniprint Infinity Citrix Printing Solution
Uniprint Infinity Citrix Printing Solution
 
The CIO Pocket MBA
The CIO Pocket MBAThe CIO Pocket MBA
The CIO Pocket MBA
 
Citrix Top 10 Trends
Citrix Top 10 Trends Citrix Top 10 Trends
Citrix Top 10 Trends
 
Citrix and Samsung Deliver Android Enterprise Security on Latest Samsung Gala...
Citrix and Samsung Deliver Android Enterprise Security on Latest Samsung Gala...Citrix and Samsung Deliver Android Enterprise Security on Latest Samsung Gala...
Citrix and Samsung Deliver Android Enterprise Security on Latest Samsung Gala...
 
Learn KVM and Receive Exclusive Invitation to Linux Foundation Collaboration ...
Learn KVM and Receive Exclusive Invitation to Linux Foundation Collaboration ...Learn KVM and Receive Exclusive Invitation to Linux Foundation Collaboration ...
Learn KVM and Receive Exclusive Invitation to Linux Foundation Collaboration ...
 
Using Concurrent Multipath Transmission for Transport Virtualization
Using Concurrent Multipath Transmission for Transport VirtualizationUsing Concurrent Multipath Transmission for Transport Virtualization
Using Concurrent Multipath Transmission for Transport Virtualization
 
GuideIT - Virtual Economies of Scale
GuideIT - Virtual Economies of Scale GuideIT - Virtual Economies of Scale
GuideIT - Virtual Economies of Scale
 
Build Your 2008R2 2-Node Cluster
Build Your 2008R2 2-Node ClusterBuild Your 2008R2 2-Node Cluster
Build Your 2008R2 2-Node Cluster
 
VDI - Zero Client Printing Solution
VDI - Zero Client Printing SolutionVDI - Zero Client Printing Solution
VDI - Zero Client Printing Solution
 
GuideIT Storage Requirements Template
GuideIT Storage Requirements TemplateGuideIT Storage Requirements Template
GuideIT Storage Requirements Template
 
GuideIT Delivery Design - Netscaler
GuideIT Delivery Design - NetscalerGuideIT Delivery Design - Netscaler
GuideIT Delivery Design - Netscaler
 
GuideIT Delivery Design - File Shares
GuideIT Delivery Design - File SharesGuideIT Delivery Design - File Shares
GuideIT Delivery Design - File Shares
 
GuideIT Customer Success Criteria Guide
GuideIT Customer Success Criteria GuideGuideIT Customer Success Criteria Guide
GuideIT Customer Success Criteria Guide
 
Guide IT Delivery Design - Security
Guide IT Delivery Design - SecurityGuide IT Delivery Design - Security
Guide IT Delivery Design - Security
 

Kürzlich hochgeladen

Presentation on how to chat with PDF using ChatGPT code interpreter
Presentation on how to chat with PDF using ChatGPT code interpreterPresentation on how to chat with PDF using ChatGPT code interpreter
Presentation on how to chat with PDF using ChatGPT code interpreternaman860154
 
Breaking the Kubernetes Kill Chain: Host Path Mount
Breaking the Kubernetes Kill Chain: Host Path MountBreaking the Kubernetes Kill Chain: Host Path Mount
Breaking the Kubernetes Kill Chain: Host Path MountPuma Security, LLC
 
From Event to Action: Accelerate Your Decision Making with Real-Time Automation
From Event to Action: Accelerate Your Decision Making with Real-Time AutomationFrom Event to Action: Accelerate Your Decision Making with Real-Time Automation
From Event to Action: Accelerate Your Decision Making with Real-Time AutomationSafe Software
 
Workshop - Best of Both Worlds_ Combine KG and Vector search for enhanced R...
Workshop - Best of Both Worlds_ Combine  KG and Vector search for  enhanced R...Workshop - Best of Both Worlds_ Combine  KG and Vector search for  enhanced R...
Workshop - Best of Both Worlds_ Combine KG and Vector search for enhanced R...Neo4j
 
CNv6 Instructor Chapter 6 Quality of Service
CNv6 Instructor Chapter 6 Quality of ServiceCNv6 Instructor Chapter 6 Quality of Service
CNv6 Instructor Chapter 6 Quality of Servicegiselly40
 
The Role of Taxonomy and Ontology in Semantic Layers - Heather Hedden.pdf
The Role of Taxonomy and Ontology in Semantic Layers - Heather Hedden.pdfThe Role of Taxonomy and Ontology in Semantic Layers - Heather Hedden.pdf
The Role of Taxonomy and Ontology in Semantic Layers - Heather Hedden.pdfEnterprise Knowledge
 
Tata AIG General Insurance Company - Insurer Innovation Award 2024
Tata AIG General Insurance Company - Insurer Innovation Award 2024Tata AIG General Insurance Company - Insurer Innovation Award 2024
Tata AIG General Insurance Company - Insurer Innovation Award 2024The Digital Insurer
 
A Call to Action for Generative AI in 2024
A Call to Action for Generative AI in 2024A Call to Action for Generative AI in 2024
A Call to Action for Generative AI in 2024Results
 
How to Troubleshoot Apps for the Modern Connected Worker
How to Troubleshoot Apps for the Modern Connected WorkerHow to Troubleshoot Apps for the Modern Connected Worker
How to Troubleshoot Apps for the Modern Connected WorkerThousandEyes
 
TrustArc Webinar - Stay Ahead of US State Data Privacy Law Developments
TrustArc Webinar - Stay Ahead of US State Data Privacy Law DevelopmentsTrustArc Webinar - Stay Ahead of US State Data Privacy Law Developments
TrustArc Webinar - Stay Ahead of US State Data Privacy Law DevelopmentsTrustArc
 
2024: Domino Containers - The Next Step. News from the Domino Container commu...
2024: Domino Containers - The Next Step. News from the Domino Container commu...2024: Domino Containers - The Next Step. News from the Domino Container commu...
2024: Domino Containers - The Next Step. News from the Domino Container commu...Martijn de Jong
 
Advantages of Hiring UIUX Design Service Providers for Your Business
Advantages of Hiring UIUX Design Service Providers for Your BusinessAdvantages of Hiring UIUX Design Service Providers for Your Business
Advantages of Hiring UIUX Design Service Providers for Your BusinessPixlogix Infotech
 
The 7 Things I Know About Cyber Security After 25 Years | April 2024
The 7 Things I Know About Cyber Security After 25 Years | April 2024The 7 Things I Know About Cyber Security After 25 Years | April 2024
The 7 Things I Know About Cyber Security After 25 Years | April 2024Rafal Los
 
🐬 The future of MySQL is Postgres 🐘
🐬  The future of MySQL is Postgres   🐘🐬  The future of MySQL is Postgres   🐘
🐬 The future of MySQL is Postgres 🐘RTylerCroy
 
Bajaj Allianz Life Insurance Company - Insurer Innovation Award 2024
Bajaj Allianz Life Insurance Company - Insurer Innovation Award 2024Bajaj Allianz Life Insurance Company - Insurer Innovation Award 2024
Bajaj Allianz Life Insurance Company - Insurer Innovation Award 2024The Digital Insurer
 
08448380779 Call Girls In Greater Kailash - I Women Seeking Men
08448380779 Call Girls In Greater Kailash - I Women Seeking Men08448380779 Call Girls In Greater Kailash - I Women Seeking Men
08448380779 Call Girls In Greater Kailash - I Women Seeking MenDelhi Call girls
 
Boost PC performance: How more available memory can improve productivity
Boost PC performance: How more available memory can improve productivityBoost PC performance: How more available memory can improve productivity
Boost PC performance: How more available memory can improve productivityPrincipled Technologies
 
04-2024-HHUG-Sales-and-Marketing-Alignment.pptx
04-2024-HHUG-Sales-and-Marketing-Alignment.pptx04-2024-HHUG-Sales-and-Marketing-Alignment.pptx
04-2024-HHUG-Sales-and-Marketing-Alignment.pptxHampshireHUG
 
[2024]Digital Global Overview Report 2024 Meltwater.pdf
[2024]Digital Global Overview Report 2024 Meltwater.pdf[2024]Digital Global Overview Report 2024 Meltwater.pdf
[2024]Digital Global Overview Report 2024 Meltwater.pdfhans926745
 
Apidays Singapore 2024 - Building Digital Trust in a Digital Economy by Veron...
Apidays Singapore 2024 - Building Digital Trust in a Digital Economy by Veron...Apidays Singapore 2024 - Building Digital Trust in a Digital Economy by Veron...
Apidays Singapore 2024 - Building Digital Trust in a Digital Economy by Veron...apidays
 

Kürzlich hochgeladen (20)

Presentation on how to chat with PDF using ChatGPT code interpreter
Presentation on how to chat with PDF using ChatGPT code interpreterPresentation on how to chat with PDF using ChatGPT code interpreter
Presentation on how to chat with PDF using ChatGPT code interpreter
 
Breaking the Kubernetes Kill Chain: Host Path Mount
Breaking the Kubernetes Kill Chain: Host Path MountBreaking the Kubernetes Kill Chain: Host Path Mount
Breaking the Kubernetes Kill Chain: Host Path Mount
 
From Event to Action: Accelerate Your Decision Making with Real-Time Automation
From Event to Action: Accelerate Your Decision Making with Real-Time AutomationFrom Event to Action: Accelerate Your Decision Making with Real-Time Automation
From Event to Action: Accelerate Your Decision Making with Real-Time Automation
 
Workshop - Best of Both Worlds_ Combine KG and Vector search for enhanced R...
Workshop - Best of Both Worlds_ Combine  KG and Vector search for  enhanced R...Workshop - Best of Both Worlds_ Combine  KG and Vector search for  enhanced R...
Workshop - Best of Both Worlds_ Combine KG and Vector search for enhanced R...
 
CNv6 Instructor Chapter 6 Quality of Service
CNv6 Instructor Chapter 6 Quality of ServiceCNv6 Instructor Chapter 6 Quality of Service
CNv6 Instructor Chapter 6 Quality of Service
 
The Role of Taxonomy and Ontology in Semantic Layers - Heather Hedden.pdf
The Role of Taxonomy and Ontology in Semantic Layers - Heather Hedden.pdfThe Role of Taxonomy and Ontology in Semantic Layers - Heather Hedden.pdf
The Role of Taxonomy and Ontology in Semantic Layers - Heather Hedden.pdf
 
Tata AIG General Insurance Company - Insurer Innovation Award 2024
Tata AIG General Insurance Company - Insurer Innovation Award 2024Tata AIG General Insurance Company - Insurer Innovation Award 2024
Tata AIG General Insurance Company - Insurer Innovation Award 2024
 
A Call to Action for Generative AI in 2024
A Call to Action for Generative AI in 2024A Call to Action for Generative AI in 2024
A Call to Action for Generative AI in 2024
 
How to Troubleshoot Apps for the Modern Connected Worker
How to Troubleshoot Apps for the Modern Connected WorkerHow to Troubleshoot Apps for the Modern Connected Worker
How to Troubleshoot Apps for the Modern Connected Worker
 
TrustArc Webinar - Stay Ahead of US State Data Privacy Law Developments
TrustArc Webinar - Stay Ahead of US State Data Privacy Law DevelopmentsTrustArc Webinar - Stay Ahead of US State Data Privacy Law Developments
TrustArc Webinar - Stay Ahead of US State Data Privacy Law Developments
 
2024: Domino Containers - The Next Step. News from the Domino Container commu...
2024: Domino Containers - The Next Step. News from the Domino Container commu...2024: Domino Containers - The Next Step. News from the Domino Container commu...
2024: Domino Containers - The Next Step. News from the Domino Container commu...
 
Advantages of Hiring UIUX Design Service Providers for Your Business
Advantages of Hiring UIUX Design Service Providers for Your BusinessAdvantages of Hiring UIUX Design Service Providers for Your Business
Advantages of Hiring UIUX Design Service Providers for Your Business
 
The 7 Things I Know About Cyber Security After 25 Years | April 2024
The 7 Things I Know About Cyber Security After 25 Years | April 2024The 7 Things I Know About Cyber Security After 25 Years | April 2024
The 7 Things I Know About Cyber Security After 25 Years | April 2024
 
🐬 The future of MySQL is Postgres 🐘
🐬  The future of MySQL is Postgres   🐘🐬  The future of MySQL is Postgres   🐘
🐬 The future of MySQL is Postgres 🐘
 
Bajaj Allianz Life Insurance Company - Insurer Innovation Award 2024
Bajaj Allianz Life Insurance Company - Insurer Innovation Award 2024Bajaj Allianz Life Insurance Company - Insurer Innovation Award 2024
Bajaj Allianz Life Insurance Company - Insurer Innovation Award 2024
 
08448380779 Call Girls In Greater Kailash - I Women Seeking Men
08448380779 Call Girls In Greater Kailash - I Women Seeking Men08448380779 Call Girls In Greater Kailash - I Women Seeking Men
08448380779 Call Girls In Greater Kailash - I Women Seeking Men
 
Boost PC performance: How more available memory can improve productivity
Boost PC performance: How more available memory can improve productivityBoost PC performance: How more available memory can improve productivity
Boost PC performance: How more available memory can improve productivity
 
04-2024-HHUG-Sales-and-Marketing-Alignment.pptx
04-2024-HHUG-Sales-and-Marketing-Alignment.pptx04-2024-HHUG-Sales-and-Marketing-Alignment.pptx
04-2024-HHUG-Sales-and-Marketing-Alignment.pptx
 
[2024]Digital Global Overview Report 2024 Meltwater.pdf
[2024]Digital Global Overview Report 2024 Meltwater.pdf[2024]Digital Global Overview Report 2024 Meltwater.pdf
[2024]Digital Global Overview Report 2024 Meltwater.pdf
 
Apidays Singapore 2024 - Building Digital Trust in a Digital Economy by Veron...
Apidays Singapore 2024 - Building Digital Trust in a Digital Economy by Veron...Apidays Singapore 2024 - Building Digital Trust in a Digital Economy by Veron...
Apidays Singapore 2024 - Building Digital Trust in a Digital Economy by Veron...
 

Should a Startup Outsource Software Development?

  • 1. Should a Startup Outsource Software Development? Conclusions after running a concierge MVP for the last 3 months Disclaimer: I started writing this article by speaking about outsourcing in general, but I soon found out that I became rather nasty toward the current outsourcing solutions (which, I believe, don’t work and cause big troubles for some companies) and that would not have helped anyone. So, I reconsidered and looked at what we’ve been doing for the last few months and take some of the most relevant bits from this experience. Therefore, I kind of talk about 3seeds.co.uk and our experience in matching startups with teams from our network. So, this article may sound a bit like a sales pitch. It partially is, but you know now and you can spend the next three minutes doing something else if you find that totally unacceptable. Is technology outsourcing a solution for startups? The decision to outsource software or product development does not come easily for many startups. Overcoming the trust and control issues is not handy sometimes, especially when you are in a growing frenzy and the most valuable asset is your team. We definitely can understand that and in many cases it is valid argument. But there are some situations where a startup can hack development by virtually creating development power machines from other’s resources. It’s a model close to the cloud hosting logic and allows a small team to be nimble and effective in creating their technology solutions. 3 main reasons for choosing outsourcing for a startup From our experience in working with a few dozen startups since we launched 3seeds last November, we can draw on three main reasons why a startup would/could choose
  • 2. an outsourcing solutions for developing parts of its software: 1. Reduced costs As expected, the main reason for choosing outsourcing solutions is a cost issue. But, we found out, it’s more than simply lower prices: it’s always been so far a matter of balancing the costs with the quality an outside software team can bring to the business. And, as it is the case for 3seeds solutions, when you can save between 30% and 50% on your product development compared to in-house or local solutions (and basically receive the same quality), it really becomes an interesting opportunity for a startup. 2. Access to talent and specialised skills Especially in SF and London these days, we all know how difficult it is to find good technical talent. And when you find it, you usually have to sell your liver to be able to pay for it. Now, being a startup can add an additional layer of complexity into this mix, as the moneys are scarce and the stability is something to be established yet. But a startup still needs to develop the products, even with black magic. Thing is, you may not even have to learn voodoo to make it, as in other parts of Europe there is a thriving ecosystem of strong technical talent and specialised skills. For instance, right now, 3seeds allows you to avoid competing with other startups recruiting locally by gaining access to well-trained, highly-educated IT professionals in Central and Eastern Europe. And 22 teams with more than 1200 specialists in total can be a good pool to find a good fit there. 3. Flexibility and speed A startup is basically a high speed vehicle not necessary knowing where it’s heading. And it is fine to be like this, we say. But that instantly means that speed matters, especially when developing and launching your products. Flexibility means simply that you have a few options to work with a team: from a time-based approach, where you are quoted on the time spend on the project by the team, to having a dedicated team to work only for your project for a pre-established period of time. Some of the teams can even visit your offices and work from there, along with you. The whole point here is that their experience allows them to focus on development so you can ship your
  • 3. product faster. Besides that, for any contract from a certain value up, we’ve always encouraged the client to create an initial test project for the chosen team, get it developed and measure the satisfaction metrics, before committing to a bigger investment. And it works. I end this here, even though there may be other insights into this. But for now, let me hear about your experiences in developing your software with an outside team. Funky stories are definitely welcomed!