When you’re a startup, thinking about outsourcing is probably not one of your top priorities. But it should! Startups have much to gain by outsourcing software development right from the start; and even more by doing so to a country that offers political and social stability, similar culture and working standards, strong currency, and low time-zone and communication impacts.

Nov 3rd 2016
Did you know startups & outsourced software development are a perfect match?

A development team in a foreign location is often still seen as using cheap labour to execute pre-defined tasks, rather than working alongside with experts whom are fully integrated in the development cycle of your product and add value to it. This is a poor assessment of outsourced software development.

Take a look at the topics below and find out why outsourcing development can actually benefit your product.

Expertise & practise

A company that specializes in software development minimizes your initial setup effort, as they typically employ highly-skilled developers & testers, use a comprehensive toolset and have already implemented proven methodologies and processes. They also allow that you have access to a wider technology stack and to specific skills that you normally would not have in-house. This is quite relevant when you need peak expertise and even more when you need to develop your product further over time.

Flexibility & speed

An outsourced development company will assign only a share of their resources to your project, which means that additional people will be available and may be engaged into it. Whether you need to scale up your team on a more permanent basis, face an exceptionally short deadline or respond to moving requirements, engaging new people into your project is likely to be done within a short timeframe.

Risk & success sharing

Many outsourced development companies are currently willing to work on a success fee basis, which allows you to share some of the risk. Performance incentives and bonuses indexed to delivery may also be set. In any case, you make sure that the outsourcing company is deeply committed to the success of your project.

Lower investment & controlled costs

Early investment in a startup is commonly high and human capital is a good part of it. An outsourced development company can be a worthy alternative to direct local hiring, providing the same quality with less of your time spent on finding the right people. Cost savings are also expected due to a more competitive pricing structure on the outsourced development company’s location.

Size actually matters…

If you think outsourcing is large organisations’ stuff only, think again. Smaller outsourced software development companies have a much lighter structure and wider flexibility to adjust to your specific startup needs. They are also more results-driven and predisposed to work based on various performance incentives. In addition, when working with startups where projects are most often thought-provoking and technically striking, these small businesses are able to attract the best talent.

…and where you do it too!

Choosing a country to base your development team is a central piece in the overall outsourcing theme. Here is why Portugal can be a first-rate option:

  • Expanded talent pool - highly skilled and driven native IT professionals, in addition to free movement of workers from EU member states, makes it easier to engage development and testing experts to your project – language-skilled and used to work in multi-cultural settings too!
  • Low travel, communication and time impact – time-zone and distance to other European countries is short; there are daily flights between Lisbon and major European hubs (including low cost) with flight time below 3 hours. Work schedule, daily meetings or short-notice travel are not an issue.
  • Social, political and regulatory framework - politically and socially stable and secure country with a highly rated business environment and privileged geography, climate and quality of life; as a member state, Portugal is bound by EU ethics and standards, namely on IPR & data protection.
  • Currency & competitive advantage - Eurozone member where currency fluctuation and exchange costs are prevented, making it is easier to conduct cross-border deals. Cost structure is quite competitive both in terms of cost of living and labour costs. 

By Ana Raposo Guerra | Executive & Marketing Manager | via LinkedIn


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