An outsourced team provides many advantages to your startup. Many large, global businesses started out in a garage outsourcing their advanced ideas to develop. Whereas there are some risks to outsourcing, they are typically outweighed by the pros.
- Reduced Costs. By using an outsourced team you will only pay for the services you want and they are defined from the start in your contract.
- Defined Contracting Periods. By clearly defining how long you need the services you are able to estimate costs.
- An outsource team will be able to assume many different tasks and services for you. This enables you to expand your business far quicker by exploiting new technologies or opportunities as they develop.
- Access to Expertise. By definition, an outsource team will only employ professionals in their field. You are able to access this capability through your contract and get advice on improving efficiency and cost-cutting.
- Adaptability and Resilience. In the same sense as scalability, your outsourced team are able to adapt to your changing requirements by bringing in staff from other departments of their organization to work on your project. Giving you a flexibility not afforded in-house.
- Conflicting Priorities. You will almost surely not be the only client the outsourcer has, so there may be consistent priorities depending on who shouts the loudest or who pays more. This can affect your business as you may not get the instant response you require.
- IPR Risks. Giving your data, sensitive information and trust to an outsourcer can be dangerous. It only takes one breach for you to have your business at risk from opponents or hackers.
- Logistical and Geographical Issues. Your development team may be located on the other side of the world which clearly may not be companionable when arranging conferences, meetings or visits.
- Control of Quality and Process. You will not have control of the quality and processes used in your software development until the product is delivered to you. Then you may find a bit of rework to align to your goals and standards.
- Cultural and Organizational Differences. With the ability to work around the globe it is possible to use an outsourcer from almost anywhere. Whilst a brilliant opportunity it can bring problems if you do not research the cultural and organizational differences. This can be simple things like shorter working weeks of extended religious holidays but in extreme cases can be illegal activity or discrimination. Much offshore development center takes care of this pros and cons while developing an app.