How Startups Can Leverage External Teams for Development

Posted 10/08/22

Table of Contents

Quick overview:

  • Hiring qualified developers is the biggest challenge for startups in 2023.
  • Outsourcing helps bridge the talent gap and launch products faster.
  • Successful companies like Alibaba, Skype, and P&G leveraged outsourcing for various goals:
    – Alibaba built remote teams for broader talent access.
    – Skype used outsourcing to capitalize on early product launch momentum.
    – P&G outsourced R&D to boost innovation and achieve a 60% increase in productivity.
  • The article concludes by offering guidance on choosing an outsourcing partner.

The road to market leadership is paved with innovation and speed. In today’s competitive landscape, finding the right talent can be the biggest hurdle for a startup. This is where outsourcing software development shines. In this article, we’ll answer these questions:

  1. How startups can tackle resource gaps problem?
  2. What should I look for when outsourcing software development?
  3. What is the best way to outsource software development?

Top 3 Success Story From Startup to Tackle Resource Gaps Problem

Based on the data, we found the biggest challenge in software development in 2023 lies in hiring talent for the first position. In fact, finding the right developer and skills gap problems is difficult for the majority of companies and startups. To address this, companies should have a specific requirement for their hiring. This means prioritizing not only specific skills and experience but also a candidate’s demonstrably strong aptitude for learning. Additionally, investing in training and development programs can equip existing employees with the latest skills, fostering talent retention. However, this will waste time for companies and startups.

But is that all it does? Not only that. Several companies have experienced extraordinary things in their product journey with outsourced software. Here’s how companies use outsourced development teams.

Read Also :  Why Outsourcing Is Better Than In-House for Startup

1. Building Remote Teams the Alibaba Way

For all companies that have used outsourcing, their original goal was to fill a void in the team. This is clearly seen when they do not have time to recruit and create an in-house software development team. But is this method effective? Alibaba company, in its initial business journey in 1999, used the outsourced development teams services by working remotely from the united states. The motive was to attract talent outside their area and find people with better skills that he didn’t find locally.

2. Skype’s Outsourcing Success Story

Every company wants to gain momentum just as a balloon bursts when its product is launched in the Market. For example, launching an application is the answer to the problems of today’s society. This thing was experienced by skype. The company had a problem at that time when the product idea was good, but no one had a web development professional. They took advantage of its early momentum in launching applications where the developer’s majority is outsourced. All of which were obtained from Europe. What is the result? From the very beginning since its launch until now, Skype has had almost 1 billion monthly active users because it is thanks to using software outsourcing services at the right time. Cause momentum will meet if time and place in the right way.

3. How P&G Outsourced for Growth

A few companies not only want the talent, but they can share the idea or add things that they have never think before. This thing is experienced by P&G companies with different goals than other startup outsourcing. P&G company then did not experience a financial crisis, even though its income was stable. But they want innovation in their products to compete with competitors.

Read Also :  Five Common Mistakes to Avoid When Outsourcing Software Developer 

At first, P&G company outsourced research and development to reinvent the business model, especially for precedent-setting fashion. The former CEO set a goal to acquire 50 percent of innovation from outside the company. In 2003 P&G secured $4.2 billion worth of outsourcing partners with IT infrastructure, finance, accounting, HR, and facilities management. What do they get in after? Innovation productivity got boosted by 60%, ad P&G’s net sales amounted to about 67.7 billion U.S Dollars.

4 Key Criteria for Selecting an Outsourcing Partner

Outsourcing Software Development Work

1. Track Records of the Company

You can see the company’s story directly or on a website review. As for the things you need to pay attention to when reviewing the company that will be your partner, such as:

  1. What technology or programming language is used?
  2. What about the results of projects with previous clients?
  3. Who will you work with?

If the question has been answered and you are sure. Let’s move on to the next step.

2. Have a Cooperation With

Know who your partner is working with and the company’s position as a subsidiary or parent company. This, of course, will affect you in the future. Because if you happen to find a subsidiary of a well-known parent, it will be a plus to enter your assessment. So know who you are working with.

3. Work Have Been Done

Observe and see what technology has been used in previous projects. This reflects the experience of outsourced companies in handling a project.

4. Talent Expertise They Have

After you see, observe, and analyze, the next step is to determine what technology you want for software development. Contact immediately if it suits your needs, and you already have sufficient trust in the company’s experts.

Read Also :  Solving Problems is What Software Outsourcing Does Best

Final Words

Outsourcing Software Development Work

As you’ve seen, companies like Alibaba, Skype, and P&G have all leveraged outsourcing to achieve remarkable success. While in-house development has its place, outsourcing offers a strategic advantage in today’s competitive landscape. Keep reading our blog for more insights on navigating the world of software development and achieving your entrepreneurial goals.


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