Why The Valley Loves Outsourcing...and uses it all the time!

It is well known that a lot of tech startups use outsourcing to power their business. They not only outsource software development and design but customer service, sales and order fulfillment. They typically avail themselves to the traditional destinations like India, Philippines , China and Russia. There are a few reasons why outsourcing is being used by tech and service heavy startups....

• The timeline from concept  to Minimum Viable Product (MVP) is substantially shortened 

• Outsourcing companies have a very good grasp of  open source, thereby reducing development timeline and costs

• All of the core competencies to run a successful development team are under one roof. The Startup does not have to go out and built a team which covers all aspects needed for a successful application development (Development, Engineering, User Interface Design ....)

• The BPO company,  even though it  might be located in the Philippines or India, might have significant related experience to the business the start up wants to get off the ground. 

In my opinion a start up which  uses a reputable outsourcing provider who is not just a body shop will always come out ahead. Costs will be dramatically lower and  there is huge degree of flexibility to scale development up or down as needed. Another important factor is that  the startup gains a degree of technical knowledge it would simply not be able to acquire (or only at significant costs).

An article discussing some of the Pro's and also the Con's is below.

Why Every Startup Should Outsource Software Development...and typically does!