Are You A Startup That Wants To Outsource Software Development? Here’s How You Can Overcome The 3 Biggest Troubles You Might Encounter

18 August 2023

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Startups are very flexible in their beginning stages, (no) thanks to a dozen problems they encounter, demanding them to adapt swiftly.

Although they might outsource one of the most challenging tasks – technology development – however, in their struggles they might overlook a few mistakes that can cost a lot of time and money, which startups don’t have an abundance of.

So, here are 3 struggles startups might encounter and their quick solutions.

1. Unclear Project Scope & Poor Communication

Both of these problems are detrimental on their own, but they are also directly dependent on each other.

Startups often have their unique ideas, the concept of which is sometimes never before seen in the market. Although that’s what gives the startups their uncontested advantage, it will seldom be something that outsource vendors can easily understand.

Quick Solution

To make sure you get the product that you think you need, take some time to come up with a clear and concise project scope. Use examples and analogies that would make it easier to convey your vision to your outsourcing partners.

Once you have that in place, set up proper communication channels and conduct regular meetings to ensure you get the best product in the best time.

Here’s what else you can do:

Scope out clear deliverables of the project.
Define metrics and KPIs (key performance indicators) to measure progress.
Set up plans and schedules according to your best estimations.
Use project management tools that track workflow such as Trello or Slack.
Set up regular communication discussing daily or weekly progress via email or video conferences.

2. Budget Overruns & Hidden Costs

Managing a budget is always a tough skill; starting with a little silver lining, startups can experience scope creep.

Watching your startup expand and become bigger, after hours of hard work, is a sight for sore eyes. However, this also leads to additional costs such as of expanding the workforce, workspace, and work hours, which might have not been considered in the initial budget calculations. This is what’s called scope creep and might cost budget overruns.

The initial budget might also be exceeded due to other costs such as extra revisions, technical support, or losses due to mismanagement or lack of experience.

Furthermore, there are also these hidden costs, which are often overlooked such as the cost of training or travel, or premium subscriptions to project management tools.

Quick Solution

Make your initial budget plan as detailed as possible, so every little cost-inducing factor is considered.
Set rainy-day funds to carry you over even in the worst-case scenarios.
Give essential features top priority, so there’s ever rarely a big financial surprise.

3. How To Find The Perfect Outsourcing Partner?

Since startups have to be able to quickly adapt to evolving market conditions, they will need an outsourcing partner who is equally flexible enough.

Because the last thing startups need is to have a product that their users do not want – meaning the product is practically useless, which might prove fatal for the startup’s journey.

Quick Solution

To find your ideal outsourcing partner, you will need someone who has executed similar projects as you and, especially, has experience working with startups.

With such a partner, you can increase your chances of avoiding major pitfalls; more importantly, you can benefit from their experience and how it has helped other startups in the past.

Here’s what startups should look for in their outsourcing partner:

Has a portfolio along with feedback from previous clients.
Openly discusses pricing terms, risks, and overall plan.
Has experience working with startups.
Discusses clear procedures while summing up requirements, metrics, KPIs, etc.

There’s more to finding your ideal outsourcing partner, click here to read more about it.

Wrapping Up – Where To Find Outsourcing Partner?

In conclusion, there are several unique struggles startups encounter, each scarier than the last one. However, with an outsourcing partner, who always stands in your corner, you’ll be able to weather each storm on the horizon.

So, where can you find your ideal outsourcing partner? You should start with word of mouth, and ask around your colleagues, friends, family, or your classmates. We are likely to trust the word of customers, so their feedback will matter a lot.

Speaking of reviews of customers, online platforms such as Fiverr or Upwork where reviews are public will help you pick the right outsourcing partner. You can also Google, by using relevant keywords, which might take you to one of these sites or to thousands of technology companies with an online presence.

Another choice is to visit directories including Clutch or Goodfirms to pick a partner from among those listed.