Taking advantage of worldwide talent: how outsourcing helped tech startups succeed.

Many outsourcing companies were able to rise to the top of the tech industry thanks in part to IT outsourcing for startups.

According to the most recent data, 90% of tech startups fail.

Every successful startup encounters many difficulties throughout its existence. Many of them are fairly insignificant. Nevertheless, a few may obstruct them from the start.

First, the technological implementation of your ideas, rapid growth, and team expansion are such crucial matters for tech startups. Can a startup that outsources its software development overcome those obstacles? The quick response is “yes, it can,” but let’s talk about that in more detail. How and why will the next generation of startup outsourcing software development benefit from technological advancements?

Why outsource software development for startups?

Startups can avoid worrying about selecting the right technology, coding for hours on end, testing it, and so on, by outsourcing software development. With a fledgling software development firm, or at least a team, the entrepreneur can focus on developing good marketing plans, seeking out financiers, or coming up with fresh, creative concepts. Growing a valuable business takes valuable time. Too frequently, stakeholders have a great concept or business idea, but they need assistance putting it into practice technically because it’s still an unbearable burden.

Ten instances of prosperous IT outsourcing for new businesses

While some of us are still debating whether or not to work with a dream team from established businesses, or a committed team model that could help a startup achieve a successful exit, we advise taking a look at the list of those who succeeded:

  1. Opera browser

The popular web browser Opera depended on software engineers from different nations to design and implement unique software for its online platform. The business understood the importance of varied viewpoints and skill sets, and through outsourcing, it was able to access a worldwide talent pool. By using this strategy, they were able to develop a strong and unique web platform that distinguishes them in the crowded browser market.

  1. The MySQL

Popular open-source relational database management system MySQL scales up operations in each distinct location with the help of a committed and outsourced team of workers located in multiple countries. They were able to swiftly adjust to the demands of various markets and maintain a 24/7 development cycle thanks to this tactic. The company’s accomplishments demonstrate the value of having a dispersed workforce.

  1. The GitHub

The version control and collaboration platform Github employs a large number of skilled independent contractors who work remotely from their homes. This strategy promoted a culture of flexibility and remote work while giving them access to a range of talents and knowledge. Github’s development and standing as a major international hub for developers are largely attributable to this model.

  1. Basecamp

Github and Basecamp, two project management and team communication apps, used a comparable outsourcing business model. They were able to assemble a varied team and produce a product that appeals to a broad spectrum of consumers by utilizing remote talent. Their success story demonstrates how innovation and market leadership can result from outsourcing.

  1. Skype 

The telecom app Skype collaborated with a development team overseas, which helped them rise to the top of the industry. They could swiftly grow their business and provide a superior product to a worldwide market by outsourcing. Their narrative exemplifies how outsourcing can spur expansion and market supremacy.

  1. The JPay

Offshore developers assisted JPay.com, a company that offers payment services to prisoners in American prisons, in building its infrastructure and technology. These developers worked in engineering, software development, hardware and software outsourcing, and quality assurance. Their work was crucial in creating the strong platform that ultimately resulted in Securus Technology purchasing the business.

  1. The Fab

When Fab, a well-known startup, began to show signs of growth, they teamed up with development firms to optimize funding. They could take advantage of the experience of reputable development companies while concentrating their resources on their core business operations by outsourcing. Their growth trajectory was significantly influenced by this tactic.

  1. The Alibaba

Often referred to as “China’s eBay,” Alibaba.com contracted out software development during its early stages of development. Jack Ma and his group used outside expertise for technical implementation because they understood how important it was to concentrate on their core skills. Making this choice was essential to their development into one of the biggest e-commerce businesses in the world.

  1. The Slack

Early on, the business communication platform Slack contracted out services and software development. They were able to rapidly develop and refine their product thanks to this method, which has contributed to their current $27 billion valuation. Their narrative serves as a potent illustration of how outsourcing can be used by startups to boost expansion.

  1. The Gliffy

Tech development for Gliffy, a company that provides web-based tools for making different kinds of diagrams, was partially outsourced to outside teams. By doing so, they were able to concentrate their internal resources on their primary business operations and leverage specialized skills and expertise. Their accomplishments demonstrate the advantages of strategic outsourcing for technology development.

Things to consider before choosing a software development firm for a startup

The question of whether or not startups should outsource their software development to a development team is still up for debate, particularly when it comes to the specifics of what and when to outsource. What then are the fundamental prerequisites for development teams for startups that are both successful and outsourced?

Always make sure the business has a solid history of working with startups.

It is important for you to know who you are hiring. Make sure a business has a track record of successfully working with startups. Never give in to doubt. Simply never. Selecting a subpar supplier in return for cheaper prices will put your company in a difficult situation.

When selecting a development vendor, employ a methodical assessment procedure.

You are fully entitled to demand documentation attesting to the vendor software developer project manager’s expertise. Examine their website, get references and case studies, and run a brand check. In summary, always give communication your full attention.

Don’t overly restrict your spending.

It is highly recommended to have a financial plan for a minimum of one to two years before approaching a vendor. This will assist you in luring a seasoned partner or outsourcing provider for technology that will help you expand and grow your company.

Remember to safeguard your idea and intellectual property legally.

Sign official contracts or agreements whenever you deal with a vendor. Although it should go without saying, the majority of startups actively promote informality while consistently ignoring legal requirements. Keep in mind that intellectual property agreements are essential to safeguarding your company’s intellectual property and releasing you from future legal troubles. Always confirm NDA with legal professionals.

When selecting a software vendor for software development services, always keep a broad perspective in mind.

This will enable you to focus on what’s crucial for your company and hand off the CTO-related project management tools to the tech-savvy guys. If this is the best course of action, you can always mix and participate in all business-related activities, such as managing a group of developers and seeking assistance in getting your company into the marketplace.


The strategic advantages of outsourcing are demonstrated by these ten prosperous startup outsourcing success stories. Take what you can from their experiences to streamline processes and drive your own company forward.

Moreover, if you are looking for a company through which you can hire dedicated DevOps developers, then you should check out Appic Softwares. We have pre-vetted developers that can help you gain the most out of your software. So, what are you waiting for?

Contact us now!