How can IT outsourcing company save startups in the near future during this recession? One strategy that has proven to be effective is outsourcing. According to a recent report by Freshworks, “The State of Software at Work,” outsourcing can help startups to save costs, increase efficiency, and access a wider talent pool of expert developers.
The report found that outsourcing has become a common strategy for startups. In fact, 65% of small businesses surveyed said they outsource at least one business process. This trend is driven by the benefits of outsourcing, which include gaining access to specialized skills, reducing costs, and improving productivity.
5 Facts Why Outsource Matters In Uncertainty Economics
Here are five reasons why outsourcing matters for startups, based on the findings of the Freshworks report:
1. Outsource Fact: Gain Expert Developers in Large Talent Pool
Outsourcing provides startups with access to a larger talent pool of expert developers, which can be especially valuable when it comes to hiring specialized developers with unique skill sets. This can help startups to bring new ideas and perspectives to their development process, which can lead to more innovative products and services.
According to a McKinsey report, “Beyond Agile: Reorganizing IT for Faster Software Delivery,” outsourcing can also help startups to scale their development operations quickly and efficiently.
2. Investment in Knowledge Sharing for a Better Development Process
When startups outsource, they can collaborate with experienced developers who bring new expertise to their team. This can lead to better development processes and a more efficient workflow.
The Freshworks report found that 57% of small businesses said that outsourcing improved their knowledge of business processes. Additionally, the McKinsey report noted that outsourcing can help startups to adopt new development methodologies and best practices.
3. Launch Your Product On-Time with Less Effort
Startups can launch on time with less effort by outsourcing. This is because outsourcing allows startups to focus on their core competencies while outsourcing non-core functions to experts who can deliver results quickly and efficiently. The McKinsey report found that startups that outsource their development operations can reduce their time to market by up to 50%.
4. Save More Costs for Other Budgets
Outsourcing can also help startups to save costs that can be allocated to other areas of their budget. The Freshworks report found that 59% of small businesses said that outsourcing helped them to reduce costs. By outsourcing, startups can avoid the costs associated with hiring and training in-house developers, such as salaries, benefits, and office space. According to the McKinsey report, outsourcing can also help startups to reduce their development costs by up to 30%.
5. Access Flexible Resources Before Getting an In-house Developer
Outsourcing can provide startups with flexible resources that can adapt to their changing needs. This can be especially valuable in the early stages of their development when they may not have the resources to hire and train a full-time in-house developer. By outsourcing, startups can get the resources they need when they need them, without having to worry about the costs and risks associated with hiring in-house developers. The McKinsey report noted that outsourcing can help startups to scale their development operations up or down quickly and efficiently.
Outsourcing can be a smart move for startups looking to save costs, increase efficiency, and access a wider talent pool of expert developers. By taking advantage of the benefits of outsourcing, startups can stay competitive and thrive in today’s fast-paced business landscape.
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