A software startup company has to face many challenges in the first stage of its operations. There is always a pressure on these companies as they have to sustain on their own. They can afford to hire expert software developers to take up costly projects and at the same time they can afford to work on projects which are common Due to limited revenue or high costs, most of these small-scale operations are not sustainable in the long term without additional funding from venture capitalists.
A startup company in the early stages is constrained by the size of operations, but on the contrary, a rapid growth facing many challenges can be seen. Definitely, the startups know that the outsourcing of few jobs is the only way to success for growing fast.
Matrix Marketers is and successful outsourcing company which has helped many startups to develop their own infrastructure and grows. Here in this post, we are discussing that why and when is the right time for outsourcing.
We must follow the trend of outsourcing which says: Do what you do best and outsource the rest. Depending on the nature of your startup, a few of the services you may need, and that can be outsourced during the early stages of your startup. This will increase your competency in core products or service, with everything needed to support or market your product/service coming from outside suppliers, often working on a freelance basis. It is also the growth of the freelance marketplace that has made outsourcing feasible for startups.
Key Benefits of Outsourcing
• There are many benefits to outsourcing non-core projects to other companies including:
• Once you are free from the normal work, your team has the time to develop core competencies.
• Using freelancers can be more cost-effective than employing full-time staff; with the added benefit of you being able to quickly scale back should your finances run low.
• To ensure quality work, you can initially set pre-defined conditions. If a complex business problem is taking a time to solve, you can easily switch to a different freelancer.
• You can usually expect a fast turnaround time because any delay impacts on the freelancer’s own ability to generate an income.
Steps to Follow When Outsourcing
The recruiting process is more complex than outsourcing the work. The management of outsourcing is not risk taking because the outsourced company takes good care of the software project. Follow these steps to make things easier for you and any permanent staff you add to your team as your startup grows:
The tasks which are to be outsourced should be compiles properly. List each task individually, with a bit of detail for each task: this means you should not just list “new graphic for the blog post”, but should include the post topic, and when it is scheduled to be published. Each task should include details of who it was outsourced to when it is due back from them, and what your own internal deadline is. As a result, delays, confusion about accountability can be minimized.
Compile a policy document regarding confidential information. It should clearly distinguish between highly confidential information that may never be disclosed to outside parties, sensitive information which can only be disclosed with pointers in place, and public information. Every member of your team who may interact with the company’s freelancers or outsource partners should have a thorough understanding of this policy.
Find the competitive working partners who are working on the same technologies. A 2014 study found that there were more than 50-million freelancers in the US, but that does not mean it is easy finding someone who is a good fit for your business. Be open to sharing your difficulties with other startups.
Provide any freelancers or outsource partners you use with detailed information and requirements. The more specific you are, the more likely they are to deliver exactly what you expected.
The outsourcing budget has to be checked according to what you need most urgently, and what you can afford right now. Especially in the early stages of your startup.
Set aside time for following up with your freelancers, and the reviewing of all outsourced projects. You must ask the outsourced company to check and review their work and sufficient time for reviewing must be given.
What Not to Outsource
While many functions of any business can be outsourced to other companies, agencies and freelancers, there are certain functions that should never be handed over to third parties.
What matters nowadays is your ability to adapt your product to your clients’ needs, and how quickly you are able to do so. Outsourcing can increase companies’ ability to develop core functions to automate development process. Since the competition of the work which you are doing is more. The only differentiator is the ability, skill, and speed of your team and coordination between outsourcing and outsourced company.
We provide the web, mobile and cloud solutions. We have adopted the process, system & technologies to produce scalable solutions. Our focus is to develop long-term strategic partnerships with our clients by exceeding expectations and a great level of transparency. Our developers are in constant touch with the clients to imbibe the client’s viewpoint.