Outsourcing Software Development for Startups: Benefits and More

Krunal Shah

Aug 10, 2022

7 min readLast Updated Aug 16, 2022

Outsourcing software development for startups is one of the most effective ways to build competitive products. If you are a startup owner or trying to build your own startup, then you must explore the option of outsourcing software development for startups to ensure high product quality without making a hole in your pocket.

As stated in a recent market report, the global IT & software outsourcing market is forecast to surpass US $800 billion by 2025 holding nearly 75% of the global IT and software services market. There are multiple reasons why outsourcing software development for startups is high in demand around the world such as professional expertise for development to launching, cost-effective development solution, robust support, and market-driven product development, to name a few.


No matter in which industry or sector you are operating in, outsourcing software development for startups can be the best option to opt for your own startup. To know how, why, and more, let’s start from the basics before giving you a more detailed insight.


What Is Lean Startup?

Lean startup is defined as a startup development methodology that is focused on optimizing the product development lifecycles and ensuring the viability of the startup business model that is proposed. Lean startup has garnered wide popularity due to its endless advantages such as faster product development, market-driven product development that meets the audience’s requirements, and time and cost optimization, to name a few.

You can utilize lean startup by adopting a proper combination of validated information, iterative product releases, and business as well as hypothesis-driven experimentation. Experimentation, end-users feedback, and iterative designs are the focal points of lean startup methodology that take your startup and business to a whole new level. Next, we will discuss the key principles of a lean startup which will help you understand outsourcing software development for startups better.


See More: The Benefits of Custom Software Development

Key Principles of Lean Startup

To understand the role and advantages of outsourcing software development for startups, first, we need to know about the key principles of lean startups. The lean startup methodology is mainly based on the five principles as discussed below -


Outsourcing software development for startups

👉Entrepreneurs are at the forefront

One of the key principles of lean startup is to emphasize entrepreneurship. Undoubtedly entrepreneurship has taken over the globe and starting from IRS (Internal Revenue Service) to healthcare, entrepreneurs are everywhere.

Statistics say that there are more than 582 million entrepreneurs in the world, while 5.4 million new businesses were started in the U.S. itself in 2022. One of the key principles of a lean startup takes into account this point making it a key to unlocking the success of a startup.


👉Entrepreneurship is all about management

Management plays an important role in any business and it is pivotal from the day one of building your startup. The lean startup is based on the principle that entrepreneurship is all about management.

No matter what type of product or service you offer, a business is not just a product but a whole entity. And that’s why every startup needs management. Proper management builds the foundation of long-term success and a lean startup ensures you leverage this key principle.


👉Validated learning is everything

Another prime principle of lean startup is validated learning that helps you build a sustainable business in the long run. Validated learning is basically an approach taken by startups to assess the progress without using the Key Performance Indicators (KPIs) or in cases where KPIs are not that relevant to measure the progress.

👉Build-Measure-Learn is the way to excel

Build-Measure-Learn is a popular approach that is used widely in lean startups. Here Build refers to building products from the ideas generated, Measure implies analyzing how the customer responds, and Learn refers to gaining knowledge from the feedback to evolve better.

The main goal of the Build-Measure-Learn principle is to assess whether to pivot or persevere the end product. This helps you make the right decision and align with your overall business goals better.

👉Innovation accounting to cater to growth

Innovation accounting is the process of assessing the progress during various phases of building and growing your startup. Be it setting up milestones or analyzing the success of each of them, innovation accounting lets you have a 360-degree view of how your startup is doing and whether the progress is achieved or not.

See More: How to Contract Software Development: Key Things to Include

Benefits of IT Outsourcing for Startup

Now that we have talked about lean startup and lean startup principles in greater detail, let’s know why outsourcing software development for startups is taking over the product development sector.

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1. Access to Global Resources

One of the key benefits of outsourcing software development for startups is, that you get access to a global pool of resources to bring the best out of your product development. Irrespective of your geographical location, time zone, core industry, and other factors, you get to leverage the skills of the industry-leading professionals with years-long expertise. As you get to choose from top-notch resources, it takes your whole startup building and growth journey to the next level.

2. Market-Driven Results

No matter how good you think your product is unless it is compatible with the present market, half of its purpose is lost. Outsourcing software development for startups from the top entities can assure you about this.

As professional experts with market experience are in charge of your product development, they can develop a market-driven product. This implies that your product will be equipped with all the competitive features and solutions it needs to sustain and excel in the present as well as future markets.


3. Cost-Effective

Outsourcing software development for startups can be the best yet cheapest way to develop a high-quality product, provided you opt for the right method, region, and entity. For instance, countries like India, China, and Japan have the costs on the lower side, while in the U.S., U.K., Canada, and others it will cost you a lot even to build a simple app. Here's a glimpse of the region-wise software development outsourcing costs chart for your knowledge.

It is recommended to go for the software development outsourcing services from India as it offers the most qualified professionals at the lowest cost possible around the globe.

4. Minimized Risks

Whenever you start building a product, there are a lot of risks involved. It mainly depends on how saturated the market is, what your expertise is, how strong and experienced your team is, and several other factors.

Unless you want to experiment with your time, money and resources or you have a highly skilled in-house team, it is always recommended to opt for outsourcing software development for startups. All you need to do is pick up a reliable software development service provider, and the rest will be taken care of.

Resources optimization to building a quality product that completely fits the current market - you can be assured of everything through outsourcing software development for startups.

5. High Flexibility

Outsourcing software development for startups lets you have great flexibility. As the major responsibility related to product development, testing, launching, and management is handled by the outsourced team, you can get enough flexibility to focus on other important areas or allocate your limited resources strategically.


6. Better MVP Creation

Outsourcing software development for startups facilitates better and budget-friendly MVP (Minimum Viable Product) creation. As the experts with domain-specific experience develop, test, and launch your product, they know the right formula to build an effective MVP.

They completely take care of deciding and including the required features and not any redundant ones. At the same time, the MVP is built in a way so that your overall time, cost, and resources can be optimized and it can cater to successful final product development and launch.

This also ensures a better market positioning of your product as well as your whole business or startup from day one and helps you accommodate the target audience’s requirements better.

See More: 7 Concrete Tips To Reduce Software Development Costs

The Bottom Line

Outsourcing software development for startups is not just a craze but gaining traction for certain reasons. Not only the startups with limited time and resources are opting for it, but it has become a go-to option for diverse businesses from diverse industries.

Even if you don’t have time, money, and resource constraints, it is recommended to opt for outsourcing software development for startups to ensure high-quality products and to secure your market position.

No matter what type of product development services you are looking for, we, at Third Rock Techkno, have it all for you. Web development to voice or app development - our professional experts ensure optimum quality product development and industry-leading outcome. Check out our portfolio and contact us for a free consultation.