Why should early-stage startups consider outsourcing software development to offshore countries?

Bill Gates, Steve Jobs, Jeff Bezos, one thing that is common between three people is that they started with nothing but they have survived all the challenges a start-up faces and emerged as a winner. For many, it is a dream to start their own business. But the truth is it is easier said than done. Starting a business is not as fancy as it sounds. There are many challenges they have to overcome to emerge as a winner and secure a place in the market. They have to work on tight schedules, low resources and most importantly take bigger risks. 

Did you know that around 34% of the startup’s close in the first two years and more than 50% in their fifth year? All the startup’s that survive these challenges will escape failure and succeed in taking their product to their targeted audience.

The startup that works smartly and keeps an eye out for their competitors will succeed. One such smart idea that can help early-stage startups to become successful is outsourcing.

Yup, you heard it right. Outsourcing software development to offshore countries will help your business in reaching its goals faster. If you look back, all the successful startups have outsourced at some point.

Not sure why your business must opt for offshore outsourcing? Then stick till the end of this article to find out.

Why outsource software development to offshore countries?

Software development is one of the core competencies of any business, especially for an early-stage startup. Since startups are in the early stage, the startups may not have as many resources as large corporations. If you’re a start-up business owner you understand the trials and tribulations they go through in the initial stage. Taking help from a third party will help you in finishing the project on time whilst reducing risks.

Still not convinced on why startups in the early stage should consider outsourcing to offshore countries? Here a few reasons that will help you in understanding.


One of the few things that startups are short of is resources. They are tight on finances, but that should not become a hindrance for the development of the company, right? With offshore outsourcing startup’s can put such worries to rest. If startups outsource their software development to offshore countries with lower wages they can reduce their operational costs of around 30%-40%. 

Not only that they can also reduce development fees and labour costs too. Compared to the US and other western European countries the software development costs are lower in offshore regions such as Asia, Latin America, etc. The business will get the best services at reduced costs. These are the primary reasons why most startups are looking brightly at offshore outsourcing. 


Another reason why startups should consider offshore outsourcing is that it will help them in connecting with the right talent. In today’s market place with fierce competition, it is quite hard to find the right talent. When you know that your project is in the right hands you can be assured that the project development will be faster, reduce mistakes and not compromise on the quality. With tight finances and time, the startup’s don’t have to spend their time screening profile after profile and go through the process of hiring. 

Startups can spend less time hiring and work more on other important aspects of their business. Also when they outsource to other countries for offshore development along with talented personnel they will also get a project manager who will oversee that the project is finished on time.

Competitive Edge

As startups are new to the business they have put in their best efforts to sustain themselves and stay in the market for a long time. Then offshore outsourcing is the perfect solution. As you already know it is quite cost-effective. But that is not the only reason why you should outsource. 

It enables the startup’s to implement the right technology. This way you can enter the market quickly. Outsourcing helps you in developing efficient, high-quality products in no time and stay in the race with your competitors. 

Meets deadlines and reduces errors

Major concerns for start-ups about offshore outsourcing are whether they will meet the deadline and will the quality be maintained. But the truth is that with outsourcing you will not have to worry about any of these things. There will be a designated team that will be working on your project. 

You can regularly check them and get feedback about the project. Also, you will get another opinion on your product design. It will help you in seeing the product in the new light and help you in making it better. Lastly, your development process will also fasten with minimum errors.

Knowledge and expertise

When start-ups opt for offshore outsourcing they are not only outsourcing software development, they will receive much more than that. The companies will receive access to deeper knowledge and expertise. They will receive experienced professional teams and experts that will help them throughout the software development process. You can be assured about the quality of the project as the experts will be handling it. Also when working with experienced individuals it may give you new innovative ideas that will open new opportunities that will help you in taking your business to the next level. 

Understanding customers 

Apart from helping you in the software development process. An excellent Outsourcing agency will help you in researching, identifying and understanding the targeted audience. When you understand the audience needs better, you can build a project that your clients need. It is impossible to build a successful project without understanding audience needs, wants and expectations. 

Wrapping up 

When a business is new to the market they have a lot of catching up to do with their competitors. Since they are tight on budget and resources, outsourcing will help them in developing projects that will add value to their company whilst saving both time and money. Apart from software development, there are many other core areas that need discretion. 

Outsourcing will bring in the expertise and knowledge into the project. But make sure that you’re associating with the right outsourcing agency that understands your requirements and has a work ethic similar to your business. So if a startup wants to understand their targeted audience better, finish the project on time with minimal mistakes then outsourcing is perfect.