How much of your tech business should you outsource?

9 mins read

We live in an era of innovation and possibilities. When you read tech news, all the success stories about startups, inspire you to build your own. But creating your own tech business that lasts, is not easy, sometimes you get stuck, or lack the time, energy, and capabilities to develop, so it’s fairly common for your business to find itself in the need of extra help. Improving your efforts by outsourcing is often the best solution for these obstacles. If you focus on the bright side of entrepreneurship, you can learn how to prevent falling.

The Digital Europe Programme (DEP) began in January 2021, intending to improve the European Union’s strategic digital capabilities and facilitate the cross-sector integration of digital technology. Cluj, a growing Eastern European innovation center, participates in this phase through its local Digital Innovation Hubs, a well established IT and software development hub, by embarking in the process of stimulating investments in Artificial Intelligence, Supercomputing, Advance Digital Skills, Cybersecurity, and supporting the necessity of digital technologies in social and economic domains. Check more on Softech’s article, Cluj: Emerging Innovation Hub For 2021–2027. Now let’s talk about outsourcing.

What exactly does outsourcing mean for your tech business and how does it work?

Let’s start at the beginning and define what Outsourcing — sometimes called Contracting — means. Outsourcing is a business strategy in which a firm employs a third party to conduct activities, manage processes, or deliver services on its behalf. The outside firm, known as the service manager or third-party contractor, arranges for its staff or programs to execute the activities or services either on-site at the contracting company’s premises or remote locations.

So, if you want to build an app you can use an outsourced product development where you can either hire a programming agency to work on a contract, a freelancer, or another specialized person, all of them hired as a third party. Companies will also outsource a variety of duties or resources. They also outsource information technology resources such as programming, product creation, and technical assistance. They may outsource whole departments, such as their entire IT department, or just portions of a certain department.

Examples of mobile app development outsourcing

For just one search on the web, you can find so many outsourced products created by multiple companies. We recommend you start with some from appssemble’s portfolio, where you can check some of the apps on Healthcare, or Fitness, Social, Education, Cryptocurrencies, Gaming, Transportation, or others. With over 10 years of experience behind us, big corporations and startups trust us for our agility, knowledge, and guidance in helping them achieve their goals and building their products, as proof of all the positive reviews on Clutch.

What are the benefits of outsourcing your app development

Outsourcing is often the best option for businesses when developing a digital product such as a mobile app for several reasons. As opposed to recruiting all of the talent involved to fully create a new product from the ground up, hiring an established, committed agency is typically often less expensive. Furthermore, businesses with many products under their belt understand that there is much more to developing a solid product than just writing code.

Let’s see what are the benefits of outsourcing your app development:

  • Cost-effectiveness — Outsourcing your mobile app development will significantly reduce your overall costs. It will not only help you save money on overhead costs, but it will also help you save them on infrastructure and services. According to stats, outsourcing mobile app development will help you save up to 75% on costs. Outsourcing is now used by 59 percent of companies for cost-cutting purposes. Seems a very good reason for me.
  • Time-effectiveness — If an app concept has been developed and the company is preparing to launch, time is short. There is no such thing as an original idea because someone will still be there to beat a slow-moving organization to the line. Outsourcing significantly decreases the time constraint and one of the most important principles is timely delivery. The less time spent in development, the easier it is for a company to achieve long-term success. Speedy turnarounds are often advantageous to all parties involved.
  • Enhanced performance — When looking for an outsourced team, look for a professional, who can handle all of your requirements and progress. At appssemble we have everything needed to develop and give you a smooth, high-end mobile app. We have everything we need to produce excellent quality work, from a committed team of developers to cutting-edge equipment. So be sure to hire a good one for a quality result.
  • End-to-end assistance — Before a smartphone app can be launched onto the market, a series of measures must be performed. Some factors are addressed as the best software production firms are hired on an outsourced basis. A customer that requires assistance with conceptualization gets the needed suggestions and insights. The same is valid with clients who need assistance with back-end testing. Outsourcing also gives a company access to sales statistics that they would not have been able to find otherwise.
  • Flexibility — A true startup is defined by its flexibility, agility, and confidence in scaling a creative business model. Being a startup means ensuring a stable workflow through difficult times — adapting the team to meet urgent market demands whilst staying focused on the key plan and core activities. This can occur before the launch of a product, when new ideas must be introduced rapidly, or when a startup is expanding its sector and improving its development. In other words, startups should accept stability to pivot as required without collapsing.
  • Hiring top-tier experts — Professionalism is everything in the field of software production now that there is a far higher degree of competition. Outsourcing enables a customer to increase their degree of expertise without making any other unneeded compromises. It is important to enlist those with the most expertise in a specific niche. This is how some of the most obvious errors can be prevented entirely. Outsourcing firms have already gone through it all and have seen much more. These businesses also take pride in being up to date on the new trends. They would never let themselves slip off the curve. It is important to stay up with industry trends, and this is where outsourcing firms excel.

If you’re captivated, you should check Forbes’ — 11 Signs A Company Should Outsource IT — article, and if that one keeps you engaged, also check Why The Pandemic Led To An Increase In IT Outsourcing. Moving along, yeah, you’re better off working with a full-service digital-product firm that will assist you with everything from optimizing brand strategies to planning and improving the product, promotion, and continuing support. And even if you did not come to us in the first place, we will always assist you in filling in the gaps where appropriate. When done right, expanding the work with outsourcing should feel natural — auxiliary agencies should be an extension of your team rather than a piece you’re trying to bring into position.

So here are some ways you can use us to compliment your work:

  • Mobile strategy — If the product is nearing completion or is already on the shelf, you can need extra testing from a concentrated, independent test team. This would allow for more candid input on the app’s architecture and service, exposing implementation strategies.
  • UX/UI design — The design of the user interface has a significant impact on how the underlying program is coded since it defines how components behave during user interaction. Often a certain “style” does not translate well in terms of intended features. We will make things more development-friendly by assisting you in rethinking aspects of the concept, resulting in a better product.
  • On-time consultancy — When deadlines are approaching and you already have the right team in place, you will simply need additional eyes or hands in the game. We could appoint the correct guy from our workforce to work with the current team to enhance your efforts to ensure you don’t miss your deadline.
  • Product management — You may have all of the necessary talent and tools to complete a project but are unsure how to continue. And here is where outsourcing product managers (PMs) come in — these people are in charge of managing materials and assigning roles to members of the team and other outside parties, as well as initiating strategies and sustaining progress once a project is underway.
  • Development & testing — In a scrum-based Agile manner, our development and quality assurance teams code and test the app according to the agreed designs. You will receive builds every two weeks for tracking the process, gathering feedback, and adjusting features.

Regardless of how daunting such challenges are, startups have a strong chance of overcoming them. Outsourcing is the solution to all of a new entrepreneur’s issues. Even if this is your first project, you don’t have to make any beginner’s mistakes by yourself. But how do you stop making these mistakes in your play if you don’t have any experience? The simplest solution is to seek out a technical partner.

What are the downsides of outsourcing your tech part of the startup?

Problems also occur when companies do not often recognize all of the different skill sets that must be brought together to complete a project. As a consequence, we encounter cases in which an internal team or an outside firm requires extra assistance when they are missing certain puzzle pieces. Often, these departments do not need to be replaced; rather, they need to be augmented with the best talent. So, here are the disadvantages of outsourcing:

  • You lose some control — And one would imagine, when you outsource work to a third-party company or freelancer, you lose control of how those projects are managed and accomplished. That shouldn’t be a problem as long as you know and trust the people you’ve recruited — but you must proceed cautiously.
  • Hidden costs — While outsourcing is usually thought to be less expensive, you must still be wary of being taken advantage of. Outsourcing firms or large agencies will usually expect small business owners to sign lengthy contractual arrangements including a lot of fine print. If you do not carefully read the terms, you will be faced with unforeseen costs.
  • Security risks — In this day and age of data security, you must use consumer data with caution. If you want to outsource processes that include personal data, you could jeopardize the privacy of others or the security of your company by disclosing that information to others.
  • Reduced quality control — Money, rather than a job well done, can empower outsourcing companies and some freelancers. This means that whilst the job you send out may be returned easily, it will fall short of the value and quality that consumers have come to expect from the product and service they paid for.
  • Different time zones — One significant drawback to outsourcing specific assignments is the risk that the freelancers or partner entity will be set in a different time zone than you. As a result, it can be challenging to synchronize plans to ensure that the client achieves what they are expected, in a reasonable timeline.
  • Details lost in translation — It doesn’t matter if you’re working with foreign freelancers or a brilliant specialist right down the street. If you’re delivering remote work by email or phone, essential instructions are frequently lost in translation. That could cost you a lot of time, money, and hassle.

Even though we may not have been your first pick, that doesn’t mean we can’t hop in to help your project get to the end of the race. When you start a project, there are indeed a variety of problems that may arise, and supplementing your efforts with an extra hand is the best course of action. Contact us right away and we’ll work with you to find a plan and get the project moving!


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