Startups outsourcing

The Importance of Startups Outsourcing Software Engineering

The Importance of Startups Outsourcing Software Engineering

You probably heard the saying “every company is a software company.” The world is becoming increasingly reliant on technology and the software that we use has become very important in our lives. We rely on it for work, communication, and entertainment.

Exactly because of this reason, demand for software engineers has been on the rise. However, on the supply side, the number of software engineering graduates has not been keeping up with the demand. This makes software engineering a costly process.

It’s not just the software developers that cost money, but also other aspects of the job such as equipment and hosting. For startups Outsourcing software engineering to a third party can be an excellent way to save on these costs while still getting quality work done.

In this article, we’ll discuss why outsourcing your software development matters so much to your startup and how it will help you succeed in making a profit off of your business idea.

What is a startup?

Before getting started, let’s define what a startup is. This is a challenging question and has various definitions. The most popular definition is from Paul Graham, who defines a startup as “a company designed to grow fast.”

This means that a startup is not just a small business, it has a specific goal in mind: to become big and successful. Therefore, startups are often founded by entrepreneurs with the aim of quickly disrupting an industry or creating a new market and rapidly expanding into this new market.

What is outsourcing?

Outsourcing definition

Now that we know what a startup is, let’s move on to outsourcing. Outsourcing is the process of hiring a third-party company to do work for you instead of doing it in-house.

This work could be anything from software engineering to programming, graphic design and marketing.

Today, outsourcing became a very popular business practice and it’s not just reserved for large companies with a lot of financial resources.

Small, medium and even some big businesses are now outsourcing their work to professionals who specialize in different fields such as software engineering or graphic design.

Why is outsourcing software engineering important for startups?

Alright, now we know the definition of a startup and we understand what outsourcing is. Let’s talk about why it matters and how it will help your startup succeed.

Access to a larger talent pool

Startups are fragile by nature because they are still small and growing. Because of this, they often lack the resources needed to hire software engineers and other employees.

This is where outsourcing comes in. By outsourcing software engineering to a third-party company, you suddenly have access to a much larger talent pool.

This is because the third-party company will have already built relationships with various software engineers and they will be able to provide you with a list of candidates that match your specific requirements.

Partnering with an experienced software engineering company allows you to tap into their knowledge and expertise on a global scale. They will be able to guide you through the process of outsourcing and help you avoid any potential pitfalls.

Saves money

Saving money is one of the main reasons why businesses outsource their software engineering. However, this point becomes even more relevant for startups.

Outsourcing your software engineering to a third-party company can save you up to 46% on costs. This is because the third-party company will have already purchased the necessary equipment and software, as well as have the infrastructure in place to support your project.

Likewise, some of the best outsourcing partners are located in low-cost regions such as Eastern Europe and India. Therefore, by outsourcing software engineering you can save on costs without compromising on quality.


Saving cost is not the only reason why outsourcing software engineering matters to startups. Outsourcing your work will also save you a lot of time and energy because it allows you to focus on your business idea without having to worry about the technical side of things.

If you still think that hiring an in-house team is better, consider this: according to Forbes, 30% of your time will be spent on non-revenue generating tasks.

This means that you are wasting 30% of your workday doing things that don’t really matter for the success of your business, such as administrative tasks or marketing. By outsourcing software engineering to a third-party company, you can save up to half of this time and use it for more productive tasks.

Instead of wasting time on the hiring process, you can now focus on building your product and expanding your business.

Faster time to market

Fast execution

Think of outsourcing as a magic formula that will allow you to release your product faster. This is because outsourcing software engineering allows you to build a functioning product in less time, which means more time for testing and refining the final version of the product before it goes live.

By spending half or even one-third of the amount on hiring an internal team, you can speed up the process of getting your product to market.

Outsourcing software engineering is important for startups because it allows them to access a larger talent pool, save money, and focus on their core business. By partnering with an experienced outsourcing company, you can avoid any potential pitfalls and speed up the time to market.

Scaling up quickly

As your startup grows, you will need to start scaling up your operations. This means that you will need to add more employees, and in most cases, this will include hiring software engineers.

We already know that hiring in-house software engineers is extremely expensive and time-consuming. And going through this process, again and again, can severely hamper your growth.

Therefore, it is important to find a way to scale up quickly without having to spend too much money on hiring in-house software engineers. Outsourcing software engineering allows you to do just that by giving you access not only to high-quality talent but also to the infrastructure and processes needed for scaling up fast.

High-quality work

There is a common misconception that outsourcing software engineering leads to low-quality work. And this is true if you partner with a bad outsourcing company.

The truth, however, is that outsourcing companies like us at MaxinAI offer not only low-cost but also high-quality work.

This is because the quality of work is the top priority for a reputable outsourcing company since it is what determines the reputation and future of the company.

This means that a reputable outsourcing partner works very hard to hire only top-notch software engineers and ensure that they have the necessary skills and experience to deliver high-quality work. For this exact reason, some of the world’s most successful companies, such as Google, Microsoft, and Intel, outsource software engineering.


In today’s competitive business environment, outsourcing software engineering is no longer a luxury but a necessity. This is especially true for startups that are looking to get their product to market quickly and at a fraction of the cost. By partnering with a reputable outsourcing company, you can access the high-quality talent and infrastructure needed for scaling up fast.

We hope that this article has convinced you of the importance of outsourcing software engineering.

Get in touch
E-mail Facebook Linkedin Instagram
© 2021 - MaxinAI | All Rights Reserved
© 2021 - MaxinAI | All Rights Reserved