In 2018, the number of startups solely in the US totaled 30.2 million, and according to a 2013 report by Yahoo, an average of 543,000 startups worldwide are born each month, a figure that is equivalent to 6.5 million per year.
Based on the numbers, you can clearly see that millions and millions of hopefuls attempt to be the next big name in their industry. But statistically, 90% of these novel businesses will fail, with 10% of the same formally closing in as early as their first year.
What’s the Relation Between Outsourcing Software Development and a Higher Startup Success Rate?
Launching a startup is a rewarding ambition fraught with a long list of troubles. Consider the fiasco of Fyre Festival, a luxury event intended to market Billy McFarland’s app “Fyre” but ultimately barely lived up to the allure of its promotional material. It’s a great story for those who crave entertainment, but it is also a cautionary tale for aspiring entrepreneurs with grand visions and big promises they might not be able to keep. Among the other severe lessons it teaches, the catastrophe of Fyre tells us to be realistic.
It’s Not Just About Developing Software
Take a look at some of the most common causes of a startup’s dissolution — causes that, perhaps, also formed part of the reason why Billy’s Fyre flickered, flared, and was ultimately consumed by its failure:
- Running out of capital or resources
- Technical problems
- Product problems
- Incompatibility with the team
At a glance, you will notice the heart of these issues boils down to money, knowledge, and people. Startups tend to be vulnerable. Often starting at ground zero, new businesses have to build resiliency against these problems, as well as other problems unique to their niche. The saving grace, however, is technology’s accessibility, which is an asset that increases a startup’s chances of survival. With technology, you can accomplish a number of things. You can automate business operations, process big data, or even develop an app as the product for your end-users. And all this can be achieved with the right kind of software development process.
The Problems Outsourcing Software Development Solves
But even this is heavily dependent on a startup’s ability to develop software in a way that is optimal for its capacity. More often than not, new businesses try to do more than what they can currently handle. And this tends to bring about the above-mentioned consequences. So what exactly does a startup need? The answer might just lie in another company with experience and expertise in software development.
Here are 5½ reasons why outsourcing software development can give your startup the peace of mind it deserves.
Reason #1: You don’t have to worry about new infrastructure.
The thought of having brand-new tech infrastructure is appealing, but the components required to build it are overwhelming. If you have yet to build your infrastructure, then you might be lightyears away from deploying your software because developing it to life means you must have a good foundation upon which to write its code.
Outsourcing software development can help you circumvent this hurdle. It’s a good solution for startups determined to maximize their time and resources. By outsourcing your software, you:
- Do away with setting up your infrastructure;
- Immediately get to the development phase; and
- Get to have a full-fledged software ready for use in a much shorter amount of time.
Reason #2: You don’t have to worry about recruitment.
Did you know not having the right people on your team is one of the most crucial reasons behind a startup’s failure? Recruitment is a daunting task for most startups: Not only will you be investing in multiple recruitment platforms, hoping to find the best talent out of the scores of candidates, you will also be investing time in the recruitment process, screening a number of candidates every day with your mind flitting back and forth between prospective employees and startup obligations.
Add software development into the mix and you’ve got yourself into a new level of trouble. Good software developers are not easy to find, and you can’t accurately gauge their skills clearly unless you officially recruit them into your team. Sure, there are tests candidates can take, but you have to know that software development — as with any type of project — requires more than just skill to be executed well.
To accomplish a project well, you need people with knowledge, synergy, and expertise. Outsourcing software development to an established company gives you that foundational background in software creation. The people in the outsourcing company have worked with multiple clients in the past and have handled similar projects. Make sure the company you’re outsourcing to specializes in the kind of software you’re aiming to have made.
Reason #3: You don’t have to worry about basic software errors.
Software errors are the bane of a developer’s work. They are an inescapable dread even to the best software developers in the world. A good developer might encounter poorly written, unoptimized code assembled by a less-skilled developer, and the good developer will still have to suffer through the taxing job of fixing it.
Errors are bound to arise at any given time, but what you can do is avoid the most common software coding mistakes. How do you make sure you don’t experience these mistakes? You outsource your software development project to an established company.
Partnering with outsourcing companies that have experienced building software for third parties can alleviate the stress that comes with software development for several reasons:
- Your software development project will be handled by experts with years of experience.
- You can already start at the development stage because the infrastructure needed is already in place.
- Your software development project’s quality will be tested by your partner company’s quality assurance analysts, so you don’t have to spend time trying to figure out its flaws.
Reason #4: You don’t have to worry about extraneous costs.
We’ve tackled how building new infrastructure and spending on the recruitment process can take a large chunk from your finances, but the costs of developing your software in-house go beyond that territory.
For many companies, developing a specific type of software is a one-off project. This implies that (1) there is no need to maintain a large group of long-term developers and (2) doing so in order to contain the software’s upkeep in-house can be a counterproductive move.
Aside from hiring long-term employees, another extraneous cost could be rent. Your team of developers might need the extra space to update and monitor your software. This, of course, is contingent on your office space, but startups generally start small in order to allocate their resources efficiently.
By outsourcing software development, you will not have to pay out large sums that could be easily avoided and you get top quality work through this partnership.
Reason #5½: You don’t have to worry about spending time supervising and training your software development team, which means you get to focus on your core business activities.
Imagine: After so many months, you’re finally done with recruitment. You have a complete team of software developers who can begin working on your project. But since they’re new, you have to keep a close eye on your developers and guide them toward your vision. Then, you invest money in training. Your software development team also invests in training sessions. But they portion out their time and energy into gaining knowledge and skills instead of working on the project ASAP.
Taking a step back, you can see how money and resources are redirected from the main activities of your business to merely preparing for them.
Reason 5½, which has a domino effect, is probably the greatest reason why outsourcing software development will boost your startup’s success in a trajectory your competitors can’t keep up with. This is especially true if your partner outsourcing firm has clients who can attest to the firm’s quality output. You won’t have to think about training a team or worry about work efficiency and synergy. Your outsourcing partner will be the one to manage your dedicated team of expert software developers. The resulting effect is you can allot your resources better and spend more time focusing on revenue-generating work your business was built for.
Outsourcing your software development can give your startup peace of mind because:
1. It will prevent you from worrying about installing new infrastructure prior to development.
2. It will eradicate your worries about recruitment.
3. It can prevent basic software development errors.
4. It will eliminate extraneous costs.
5½. It will remove any investment in training and time spent supervising, which will help you focus on your core business activities.
NarraSoft’s outsourcing services range from project development to clerical work execution. You can expect services involving data entry, technical support, 3D art creation, software development, and so many more. If you’re interested in outsourcing to NarraSoft, send an email to email@example.com!