5 Successful Startups With Outsourced Development

Hiring talented software developers is a huge expense for business, even more so when the development has to be fast and for a startup. Many new companies in the US and Europe don't have the budget to pay for full-time developers, with this they must look outside of the local talent pool.

Startups often rely on speed to get the product or service developed and into the users hands, with this the fastest way to have the software outsourced.

We have put together a list of 8 startups that used this fast way of development and have had great success:

1. AppSumo

For those that have not heard of AppSumo, it is the marketplace which offers the best deals for specialized tools, mainly only software. By using a freelance developer, the owner was able to launch and validate the model which in turn meant that more investment could be made into the platform. AppSumo is now the number one software tool platform online often making hundreds of thousands of dollars by simple

2. Slack

One of the fastest growing tools online which went public in 2019. This popular team chat tool allows for companies to collaborate and communicate in a better and more popular way. The owners used outsourcing to create the prototype within 6 weeks, quickly putting them on the road to success. In 2019, Slack had over $400 million in revenues making the owners multi-millionaires within a couple of years.

3. Upwork

Upwork is the platform used by millions of clients and freelancers to complete projects. The company gets a percentage of all tasks taking revenues to over $500 million in 2019. The platform was built by a team of contractors from outside the company. Upwork was able to take advantage of the freelancers on it’s own platform to grow exponentially and complete all the software development.

4. Seat Compare

Seat Compare is the ticket comparison website based in the United Kingdom, displaying ticket prices from all major platforms. The company outsourced all of the development to freelance software engineers using the Upwork platform. By using outsourced development, Seat-Compare were able to quickly get to a level of prototype for the users to test. Seat Compare stands out with it's live seat view from the stadium, meaning users can see the view they will get before purchase. The website stands out in the UK market.

5. SeatGeek

Which SeatGeek initially started off as a comparison website, it quickly developed into a platform to buy and sell seats. The company used outsource development and freelancers since it started to now become number one in the secondary ticket market as well as the primary market. The development of the website was completed at a fast speed and low cost meaning they had a bigger budget for marketing.

Conclusion

As from the above examples, outsourcing development to freelance developers has great benefits. Being quick to the market allows you to validate ideas meaning that you can don’t spend entire budgets before knowing if consumers want your product or service. If you want your startup to succeed it is important to plan and execute simultaneously.