Jun 15, 2021

about 5 min read

Perks of IT outsourcing for startups

Technology is changing and evolving everyday. Having your current employees handling these tasks well does not guarantee the same outcome in the future. Staying on top of IT updates is very necessary to remain competitive and not be left behind. That is when outsourcing comes in.


Not only it helps startups to reduce the cost of hiring and training additional people but also gives you more time focusing on core functions and important aspects of your business.


This outsource-or-not decision is mainly made during startup stages. But before getting into how startups can benefit from IT outsourcing, let’s have a quick look at what IT outsourcing is.


1. What is IT outsourcing?


IT outsourcing is the practice of having a third party service provider to do some or all of your jobs and deliver the outcome in terms of software development, infrastructure and project management, strategy directions and other IT solutions consultation.


IT outsourcing


A company may use one provider for all their IT requirements, or multiple service providers to deliver different elements.


2. When would one decide to outsource or not?


In order to understand whether or not your startup business has demand for outsourcing, you need to break this down into 3 smaller questions: 

Is technology part of the core value proposition of the product? Or is it a vehicle to solve a business need?

Who’s your targeted audience, tech professionals or non-tech customers?

Is there one way only to implement this technology?


IT outsourcing


For most startups if your answers fall into:

Technology is just a tool to solve your business needs but not the main core

Your business targeted customers are non-tech audiences

There are several ways that you can get this technology method executed and implemented,

then it should be a wise choice to outsource an IT department for your business. 


Besides getting your job done almost perfectly by experts in those fields with so much less cost than hiring your local employees, you can also have more mind space to concentrate on something more important to your business. 


It is a win-win situation for both and it is a really worthy decision to some extent.This brings us to the next concern, which is what could be the advantages from getting some/all of your IT department outsourced?


3. Perks of having an IT outsourcing department


We have discussed IT outsourcing and also when a startup should consider making this buy-or-make decision or not. Let’s take a look at these actual benefit once you decide to outsource


IT outsourcing


Cost and time saving

Hiring a third party doing the job that would possibly take your current employees months to learn with only half of the cost is definitely a goal. In other words, you are only paying for what you really need. No training cost or hiring cost which we all know could be very expensive. No time wasted in waiting and choosing the right first employee for onboarding. 


Increase Efficiency and Competitiveness


Startups that try to do all the IT services themself will have to face extreme hectic plans just to realize that nothing is done perfectly. They spend too much time on doing research and still can not manage to implement as finely as experts do. Gradually this will increase cost and reduce productivity, leading to a failed business in the very short 



Quickly Implement New Technology


A quality and trustable outsourced IT service organization will have all the resources and the knowledge available to start the projects right away with latest tech updates. The years of experience that these developers put into your work will always ensure the best quality possible that might not be acquired by your in-house team. 


Stay Focused on Your Core Business


Resources of every business are limited, so is the manager's time and attention. Outsourcing can be a super good way to get your problems solved instantly. In the meantime, you can maintain the highest productivity in boosting your sales or whatever more important tasks you have to do.   


4. Case studies


Still not sure whether to outsource or not to an IT department, let’s look at these big companies becoming successful thanks to outsourcing. 


IT outsourcing




Consider Alibaba, which outsourced software development to a firm in the United States. Many others have chosen to outsource software development at the start of their journey for a variety of reasons.




Upwork was primarily developed by contractors. 150 of their 200 product and engineering employees are hired on a freelance basis. By doing so, they were able to tap into some of the top talent on the planet while also demonstrating the importance of their initiative. 




Skype entrusted the development of its platform to an Estonian trio of programmers. Niklas Zennstrom and Janus Friis, the company's founders, established in 2003 that international freelance collaboration was not a hopeless business, as many believed at the time.




They have looked into Russia, where co-founder Jan Koum recognized some of the world’s best offshore developers to conduct their services.


5. Top countries for IT outsourcing and why Vietnam


According to Market.Insider, Vietnam is one of the top 5 best countries for outsourcing beside China, Philippines, Taiwan and Ukraine. “Microsoft, Intel and IBM all invest in software development in Vietnam. Due to the influx of high-tech companies invested in the region, Vietnam also tends to excel in artificial intelligence software projects”. 


IT outsourcing



So, what makes Vietnam the most frequent destination for outsourcing? According to Hochiminh Computer Association, Vietnamese labour is far less expensive than China’s or India’s. It has attracted customers who previously outsourced to China, India, and Eastern Europe due to their cost advantage


Additionally, Vietnamese government has invested a lot more heavily in ICT infrastructure in order to export more IT services in recent years. These are considered to be the key sectors contributing to the country’s economic development.


6. Choosing the right IT outsourcing partner for your business


Choosing the right IT outsource provider for your business from the beginning is extremely important to go right. Hence, partnering with experienced companies in the markets with positive reviews from customers is highly recommended. Golden Owl, with several experiences in IT solution consultings, has implemented hundreds of projects for clients across 15 countries. 


With a wide range of options for business especially startups in IT solutions, Golden Owl believes in tackling any of your technology issues and fulfills your requirements. Our experts would leave you nothing but satisfaction and impression. 


Visit our portfolio and our amazing work for our client at https://goldenowl.asia/portfolio


We are ready to support you with our best. Are you ready to schedule a meeting? Contact us right here


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