Do you have a great product idea but not the right team to turn it into a reality? Outsourcing product development can help, and many new entrepreneurs have created successful products with the help of outsourced developers.
Here’s a startup’s guide to Outsourced Product Development For Startups.
What is outsourced product development?
Outsourced product development (OPD) is the practice in which an organization hires third-party companies to develop and maintain a product for their business. OPD allows you to get access to global talent pools and product building expertise for your product.
Why should you outsource product development?
With the software development market growing increasingly competitive, companies need to apply all possible tactics to stay ahead of the competition. One such practice is outsourcing product development to a third-party mobile app development company. Outsourced Product Development For Startups has several benefits, such as:
Apply new technologies
Product development technologies are always evolving, and implementing new technologies requires knowledge and experience. By outsourcing product development, you can get access to the latest development practices, which can help you respond to changes promptly.
Some companies prefer setting up their own product development department. This can consume a lot of time and resources as you’ll need to recruit and train new employees. Besides, maintenance and appreciation of employees also add to your expenses. Outsourcing, on the other hand, doesn’t require any such costs. You just pay for the development costs, and the mobile app development company takes care of the rest of the requirements.
Stay focused on core business
Product development can be complex and attention & energy-consuming. If you’re not experienced in product development, it’s wise to outsource it and focus on core business tasks.
The in-house development of products can be risky. It might involve uncertainties in terms of budget, expertise, and technical feasibility. And you might run into significant efficiency troubles if you haven’t implemented an Agile culture in your organization. Outsourced developers are experienced in developing a wide range of products. Thus, Outsourced Product Development For Startups can help you mitigate the risks.
To be successful, your product needs to reach the market at the right time. However, having an inexperienced team develop the product can increase your chances of missing out on critical deadlines. External parties have years of experience of working on similar projects. Hence, they most likely have a shorter time-to-market and would make sure your product reaches the market on time.
Increased development efficiency
Modern-day projects require the involvement of multiple teams from different fields of expertise. If your organization lacks agility, your in-house teams are likely to face troubles collaborating with each other. If you outsource product development, you can choose a developer with a multi-disciplinary team. By doing this, you won’t have to worry about efficiency issues.
New concepts and ideas
By outsourcing product development, you get a fresh perspective, unbiased opinions, and new ideas. These innovative ideas can help you develop a winning product.
Cost of outsourced product development
The cost of product development can depend on a plethora of factors, such as technology used, the hourly rate of the developer, etc. For instance, the development of a mobile application can cost $30-50k, whereas developing a simple web app may cost around $5-20k. The cost also depends on the location of the mobile app development company.
For example, developers in North America and Europe are twice or thrice more expensive than developers in South and Southeast Asia. But what’s certain is that outsourcing turns out to be cheaper than in-house development in most cases.
How to outsource product development the right way?
If you’re an aspiring entrepreneur, you might be looking forward to hiring a large product development firm. If you’re not technically proficient, the idea of hiring a development team that magically turns your idea into reality might sound appealing. However, this process has some potential downsides. So, here are a few tips to consider when you invest in Outsourced Product Development For Startups.
Be in-charge, involved, and constantly learning: Your product is your baby, and when you outsource its development, you lose most of its control. And if you subtract yourself from the development process, you’ll not get what you envisioned. So, be sure to be part of the process and see what’s going on.
Reduce your risks: Big product design firms take care of the entire development cycle of your product. But they can come with a hefty price tag. To reduce costs, many entrepreneurs rely on freelancers. However, freelancers are not a reliable source, especially if you outsource the entire project to one freelancer.
Hire specialists: You don’t need to hire a full-service development team, but it’s wise to have a specialist by your side who understands your vision and requirements. If you don’t have any technical knowledge, be sure to have an expert by your side.
Outsourced Product Development For Startups can help you save costs and get access to the smartest talent pool. But in some cases, outsourcing can have potential downsides. So, it is critical to understand the pros and cons of before hiring a mobile app development company for your product development requirements.
Ritesh Patil is the co-founder of Mobisoft Infotech that helps startups and enterprises in mobile technology. He loves technology, especially mobile technology. He’s an avid blogger and writes on the mobile application. He works in a leading mobile app development company with skilled iOS and Android app developers that have developed innovative mobile applications across various fields such as Finance, Insurance, Health, Entertainment, Productivity, Social Causes, Education and many more and has bagged numerous awards for the same.