Outsourcing for Startups: Agile Software Development Applications

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Many organizations have turned to using external service providers for agile software development.

Though this practice has been around since the 80s, entrepreneurs, CTOs, and product managers are now embracing this practice for business-eccentric improvements in full force.

Statistically, the IT outsourcing market globally will generate $351 billion in revenue by the end of 2021.

Companies building their structure and capacity in the business world are turning to agile software development outsourcing. They gain the support of expert IT professionals that are trained in agile methodology.

Thereafter, they can handle complex project tasks easier with better productivity guarantees and fewer operational disruptions.

However, some questions still plague most specialists in this field, such as:

●       Is it necessary to outsource?

●       Is this solution better for enterprises or startups?

●       What types of risks are high here?

●       What avenue does this benefit?

●       How can one get the best out of outsourcing agile software development?

If you are still wondering about the benefits of outsourcing agile software development for startup companies, this article goes into more detail.

Benefits of Agile Software Development Outsourcing

Indeed, for companies, adopting an agile methodology means better transparency, results, and collaborations with the projects. Startups can gain many benefits from combining outsourcing and managed agile practices.

The following are the main reasons outsourcing agile software development is a good strategy for startups.

1. Accelerated Product Delivery

Statistics show that small companies outsource 37% of their IT and accounting tasks to external service providers. One of the main reasons for this is better time management with a complete product development cycle that this solution ensures.

In general, the time to complete software projects depends on the type of development project on hand and its scale. Options like cross-platform or native apps may take a few months.

However, if one is building complicated software solutions that involve advanced technology like machine learning or AI, the development time can become much longer potentially.

At this point, depending on small in-house IT teams is not feasible for most startups, especially because of other workloads they have to handle. Here, turning towards agile software development outsourcing is the better alternative.

Agile professionals can create and deliver at least one MVP (Minimum Viable Product) within 12 weeks. This ensures an overall faster time of project completion.

2. Synchronization of Each Phase of the Software Development Cycle

The software development lifecycle for most projects involves some key elements- planning, research, building, testing, and then execution.

Different professionals handle their areas of expertise. However, without proper coordination between the various departments, information and load sharing is limited.

With an outsourcing strategy, companies can work with their off-shore Agile team for the tasks and work interdependently.

Plus, this means sharing risks with the outsourcing service provider as well, who contribute as dedicated to plan solutions to problems in the development cycle.

3. Improved Quality

Agile software development guarantees better-quality product delivery as well. Since the startup leaders and officials are collaborating with cross-functional agile development IT team members, both parties work towards better efficiency, speed, and productivity together.

Professionals focus on testing and solving bug issues continuously before the final product reaches the launch phase.

4. Streamlined Code

The agile methodology relies on team management; different professionals like developers and testers work in tandem on projects.

Many of these professionals have pre-set solutions that are useful for different project cycles. Startups that take outsourcing services get access to such streamlined universal code that fits different projects well.

5. Less Cost and Time in Software Development

The team in charge of agile software development tasks can ensure faster delivery of their work by outsourcing it.

This reduces additional costs that are common in in-house software development tasks. Statistically, 70% of firms choose outsourcing strategies with cost reduction as their main motivation.

Major Challenges of Agile Software Development

Like advantages, there are potential issues with agile software development that startups should notice.

1. Access to Resources

Not all companies, especially startups, have access to many resources or budgets. This leaves them at a disadvantage with task management, i.e., deciding priority development tasks.

2. Ineffective Collaboration

One of the common problems that teams face is related to information sharing. Some teams do not share valuable data with their outsourcing partners or vice versa. This creates a vacuum of misinformation, confusion, and distrust; both parties cannot contribute solutions that work cohesively.

3. Goals Setting and Prioritizing

Startups and even bigger companies sometimes struggle to prioritize a particular goal with their projects. Agile development allows the ability to focus on different aspects simultaneously.

4. Physical Distance

Outsourcing to external service providers usually means sharing work with others in another country. The physical distance is not easy to handle for many startups regarding communicating or checking progress.

When Outsourcing comes with Agile Software Development

These are what you can expect through combining Agile Software Development with Outsourcing development services.

Ensures Collaboration and Cooperation of Development Teams

Startups get ready to handle market challenges better with agile methodology support. Both the on-site team and the offshore service providers collaborate to handle working code through iterations and short sprints.

They can later deliver better-quality solutions after errors detection/recovery. Whether outsourcing or agile, both involve global developers working in sync to create streamlined code.

So, agile and outsourcing complement each other well as development-related solutions.

Scalability in the Software Development Process

In agile software development outsourcing, the company has the right to adjust its employees and teams.

They can change the number of members or give responsibilities to professionals with specific skills that can handle it. In both agile and outsourcing, this transition occurs smoothly, which improves scalability, work productivity, and work quality.

Agile Outsourcing Ensures Higher Productivity

An in-house IT team in startup companies can work on their projects. However, they are bound by schedules, work regulations, strict deadlines, and other project pressures.

Instead, adopting agile methodologies allows them to operate in a sprints-sharing manner. This helps with smoother information sharing between members, quick bug fixes, MVP building, feedback access, and quicker issue resolutions.

Final Words

Overall, agile development through outsourcing is a suitable choice for startups regarding cost reduction, timely delivery, and better productivity. Choose your service provider carefully, though, and focus on communicating well. Thereafter, the chance of revenue growth and work efficiency improvement is high.