An outsourced team offers many benefits to your startup. Many large global companies started in a garage to outsource their advanced ideas. While outsourcing carries some risks, they are usually outweighed by the pros.
1. Reduced Costs With an outsourced team, you only pay for the services you request, and these are defined in your contract from the beginning.
2. Defined contract terms. By clearly defining how long you need the services, you can estimate the cost.
3. Scalability. An outsourcing team can handle many different tasks and services for you. In this way, you can grow your business faster by using new technologies or new opportunities.
4. Access to expertise. By definition, an outsourcing team employs only professionals in its field. You can access this feature through your contract and receive advice on how to improve efficiency and reduce costs.
5. Adaptability and resilience. Similar to scalability, your outsourced team can adapt to your changing needs by including people from other departments of your organization in your project. To give you flexibility that is not given internally.
1. Conflicting priorities You almost certainly will not be the sole customer of the outsourcer. Therefore, there can be consistent priorities, depending on who is shouting the loudest or who pays more. This can affect your business because you might not receive the required response immediately.
2. IPR risks. Sharing your information, confidential information, and trusting an outsourcer can be dangerous. Only one violation is required to endanger your business by adversaries or hackers.
3. Logistic and geographical questions. Your development team may be on the other side of the world, which is obviously not communicable during conferences, meetings, or visits.
4. Control of quality and process. You have no control over the quality and processes in your software development until the product is delivered to you. Then you can find a little rework to adapt to your goals and standards.
5. Cultural and organizational differences. With the ability to work around the globe, it is possible to use an outsourcer from almost anywhere. A brilliant opportunity can lead to problems if you do not explore the cultural and organizational differences. These can be simple things, such as: For example, shorter working weeks with longer religious holidays, but in extreme cases may be illegal activities or discrimination.
Many custom software development companies consider these advantages and disadvantages in the development of software.