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A great idea isn’t all it takes for a startup to be successful. It’s just the beginning. How you get to the final product in your startup is up to you. Do you invest in in-house resources to create your product or do you outsource software development to a third-party company? 

Investing in an in-house team can be time-consuming and expensive yet money and time are not resources that most startups have in abundance. Many startup founders decide to outsource their software development, which is not a bad option as long as you make a careful and thoughtful decision about your partner. 

Software development outsourcing offers a number of advantages, such as increased productivity, lower prices, greater quality, lower risk, and access to a wide pool of resources.

The market for application development outsourcing was valued at £92 billion in 2021, and by 2026, it is anticipated to reach £118 billion. As you can see, outsourcing has long been a great tactic among businesses looking to reduce costs while also raising quality.

If you choose the right partner you can get experienced engineers working on your product while youre saving money and you have time to be dedicated to business development and other aspects of your company. 

The decision is yours. There is never any assurance that a choice you make will be perfect. Make sure you take it after doing your research. Consider company requirements, cultural fit, and financial resources, and your chances of success will be significantly higher.

Identify what you need (an app type, platforms to run your app, tech stack, estimated deadlines, etc.) and start with the search. 

Here are some tips for successful outsourcing of your software development. 

Check ratings and explore portfolios and blogs

When you start to search for a reliable software development partner you’ll probably search the internet or ask for a recommendation from experienced people you trust. In any case, do thorough background research on potential partners. Check out their ratings and ask their previous clients for recommendations if you’re not sure who to choose. 

Check out their web page, and check out the content they are creating. Are they showing expertise and experience dealing with projects similar to yours or in the same industry?

Of course, not all great developers create content and if they don’t do, it doesn’t mean they can’t code. However, if a company has a blog and publishes continuously about technological or other aspects of the business, this usually means that they truly understand what they are talking about. Through case studies and blogs, you can see what technologies they use, and how they think and approach different projects and situations. This way you can make a better decision about who to take into consideration and contact.

Check if they have experience in your field

If you were looking for an employee, you would probably prefer developers who had previous experience on similar projects in the same industry and with the technology you use. Make sure the company has experience in your area of ​​operation. Previous experience in your industry or similar projects means that your product will be finished faster because an experienced team will anticipate most of the obstacles and make sure that no unnecessary mistakes are made.

Get in touch with somebody from the company and make sure you are comfortable working with them

Whether you got the recommendation or you found the company online you should get in touch with somebody from the company you’re interested in to learn about their rates, expertise, certifications, security measures, communication style, etc. You can send them an e-mail or contact them via LinkedIn, Twitter, or any other social media channels and through the conversation, you’ll get the impression of that person and the company you want to work with and see how efficiently and effectively you can communicate with them. Communication and keeping track of their progress will be crucial for you during the software development stages. The necessity of communication between you and your software development partner cannot be underestimated. To help you better understand their communication style and search for a potential fit, ask for a call or meeting. Effective communication raises the standard. Different tools and apps for easier communication are available if your partners aren’t anywhere near you. 

Discuss specific details about your project with them

If at the beginning of the collaboration you specify and agree on as many details of the project as possible, it will be easier for you later. Everything that is important to you in the short and long term must be taken into account. Also, all important items of your agreement should be included in the contract you will sign with the selected company. 

You should define: 

  • Services

You should be specific about the project scope, services, and procedure for scope adjustments that you anticipate your outsourcing partner to provide. There are various outsourcing methods, and you should decide which one is most effective for you.

  • Project time and cost

Hourly rates, stages of development, milestones, their due dates, who is responsible for delays, payment plans, and similar things should be specified.

  • Testing 

Testing to see if contract criteria are met is known as acceptance testing. This section specifies who will conduct the testing, how long it will take, and how the results will be shared.

  • Intellectual rights 

Define at the beginning (and in the contract) that all intellectual property rights belong to your company, not the developers. This is extremely important for the future of your company. 

  • Documentation

You want to make sure that your outsourcing partner is handling project documentation properly so define your expectations. 

  • Privacy and Security

You should specify which information are considered confidential, and the responsibility for, and ramifications of, its disclosure. 


Cost reduction is one of the top reasons founders decide to outsource software development. Be careful when dealing with outsourcing firms for software development that provide “cheap” or “rock-bottom” prices. When outsourcing software development, you should never skimp on quality for the sake of cost. Find a company that will be the best fit for you for a reasonable price. Precise and define any possible additional costs if you eventually want to expand or change scope of your agreement.