10 success stories of outsourcing software development for startups

Harnessing global talent: how outsourcing propelled tech startups to success.

IT outsourcing for startups is what helped many outsourcing companies for them to get on top of the tech industry.

Following the latest evidence, about 90% of all tech startups fail.

Every successful startup, in the course of its lifecycle, faces numerous challenges. Lots of them are quite trivial. However, several can hinder them from the very beginning.

First, such critical matters for tech startups are the technological implementation of your ideas, fast growth, and team expansion. Can outsourced software development for startup help avoid those challenges? The short answer is ‘yes, it can,’ but let’s discuss that more deeply. In what way and due to what circumstances the subsequent startup outsourcing software development will get the technological advance?

Why outsource software development for startups?

By outsourcing software development for startups, entrepreneurs avoid worries about choosing the correct technology, spending nights and days coding, then testing, and so on. With a startup software development company, or at least a team, the entrepreneur can concentrate on working out decent marketing strategies, looking for investors, or inventing new ingenious ideas. Valuable time is spent on growing valuable business. Too often, stakeholders have an excellent concept or business idea but need help with technical implementation since technical execution often remains an intolerable burden.

10 examples of successful IT outsourcing for startups

While some of us keep weighing the pros and cons of working with a dream team established companies, a dedicated team model that would take a startup to a successful exit, we suggest looking at the selection of those who didn’t go wrong:

1. Opera

Opera, a well-known web browser, relied on software developers from various countries to create and implement custom software for its web platform. The company recognized the value of diverse perspectives and skills, and by outsourcing, they were able to tap into a global talent pool. This approach allowed them to create a robust and innovative web platform that stands out in the competitive browser market.

2. MySQL

MySQL, a popular open-source relational database management system, uses an outsourced and dedicated team of staff in various countries to scale up operations in each separate location. This strategy allowed them to maintain a 24/7 development cycle and quickly adapt to the needs of different markets. The company’s success is a testament to the power of a distributed workforce.

3. GitHub

Github, a version control and collaboration platform, utilizes numerous talented freelancers working virtually from home. This approach allowed them to access various skills and expertise and fostered a culture of remote work and flexibility. This model has been instrumental in Github’s growth and reputation as a global hub for developers.

4. Basecamp

Basecamp, a project management and team communication software, followed a similar outsourcing model as Github. By leveraging remote talent, they built a diverse team and created a product that resonates with a wide range of users. Their success story shows how outsourcing can lead to innovation and market leadership.

5. Skype

Skype, a telecommunications application, worked with a development team abroad, leading them to become a market leader. By outsourcing, they could quickly scale their operations and deliver a high-quality product to a global audience. Their story demonstrates the potential of outsourcing to drive growth and market dominance.

6. JPay

JPay.com, a company that provides payment services for inmates in U.S. correctional facilities, built its technology and infrastructure with the help of offshore developers. These developers were engaged in quality assurance, engineering, software development, and hardware and software outsourcing. Their contribution was instrumental in building a robust platform that eventually led to the company’s acquisition by Securus Technology.

7. Fab

Fab, a prominent startup, partnered with development companies to maximize funding when their business showed signs of growth. By outsourcing, they could focus their resources on core business activities while benefiting from the expertise of established development companies. This strategy played a crucial role in their growth trajectory.

8. Alibaba

Alibaba.com, often called “China’s eBay,” outsourced the software development for their startup when they were just starting. Jack Ma and his team recognized the value of focusing on their core competencies and leveraged external expertise for technical implementation. This decision was crucial in their journey to becoming one of the world’s largest e-commerce companies.

9. Slack

Slack, a business communication platform, outsourced software development and services in its early days. This approach allowed them to quickly develop and iterate on their product, leading to their current valuation of $27 billion. Their story is a powerful example of how startups can leverage outsourcing to accelerate growth.

10. Gliffy

Gliffy, a company that offers web-based tools for creating various diagrams, outsourced certain aspects of its technology development to external teams. This allowed them to tap into specialized skills and expertise and focus their in-house resources on core business activities. Their success highlights the potential of strategic outsourcing in tech development.

What you should know before considering a software development companies for startups

However, whether startups should or should not use an outsourced development team for software development remains quite controversial, especially in terms of what to outsource and when. So what are the essential preconditions of the successful and outsourced development teams for the startups?

Always check whether the company has a good track record of cooperation with startups

You ought to have an idea of whom you are hiring. Always check whether a company has a successful history of cooperation with startups. Never compromise credibility. Just never. Choosing a mediocre vendor in exchange for lower rates will lead your business to a tight corner.

Use an objective evaluation process when hiring a development vendor

You have full right to claim proof of the vendor software developer project manager’s competence. Investigate their website, ask for case studies and references, and test their brand. Always pay due attention to communication, to put it in a nutshell.

Don’t set your budget too tight

Before you approach a vendor, having a financial plan for at least 1-2 years is highly recommended. This will help you attract an experienced technological outsourcing company or partner that will help you grow and scale the business.

Don’t forget to legally protect your concept and intellectual property

Always sign proper agreements or contracts with a vendor. It seems obvious, but most startups encourage an informal atmosphere and constantly neglect formal requirements. Mind that the legal agreements concerning intellectual property are critical to protect the intellectual assets of your business and release you from problems in the years ahead. Always work with legal experts to verify NDA.

Always think big when you are choosing a software vendor for software development services

This will help you pass the CTO-related project management tools to the guys that know their way around technology and concentrate on what’s essential to your business. Now, when this is a way to go, you can always mix and take part in all the activities related to your business – manage a team of developers, and ask for help bringing your business to market.

Let’s sum it up

Do you want to build an app but need technical implementation, CTO services, or/and business consultancy? Save your time & money, and look for a reliable vendor. Always check, talk, think, and consider. It will help you understand just how credible the company is. You’re the one responsible for the outcome of your project, product development process, and business.

Looking for an experienced, diligent vendor to provide you with a full-cycle software development process? Reach out to our experts, and let us implement your ideas with the latest technologies.