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Paving Way through Outsourcing in the IT Startup

With the growing success of the IT industry, there is no other better startup than this one. Securing 599 places on the Inc. 5000 list of fastest-growing private companies in the U.S. in 2017, there is no better option other than IT for a startup. It is expected that the amount spent on IT services would reach around $2.65 trillion by 2020 and that is a huge figure.

If you are coming from a background that does not really have any technical training then it does not really matter. You can start building a startup even if you have zero knowledge about the IT industry.

If you are still not sure then let us look at the examples below who tried their luck in this industry without having any technical education: 

  •  - Coming from a background of sales, Larry Ellison built the second largest software called Oracle.
  •  - Founder of Alibaba, Jack Ma acquired her degree in English. Her company comes in the top 10 biggest companies in the world.
  •  - Andrew Mason graduated with a degree in music and went on to create Groupon. Having earnings of over $930 million, his e-commerce marketplace has about 50 million users.
  •  - Brian Chesky and Joe Gebbia are designers who founded Airbnb.

Jason DeMers is an entrepreneur contributor and his article listed the 10 most important factors that determine the success of a startup. These factors are given below:

  1. 1. Idea
  2. 2. Leadership qualities
  3. 3. A team
  4. 4. Assets
  5. 5. Plan
  6. 6. Execution
  7. 7. Timing
  8. 8. Crisis response
  9. 9. Marketing
  10. 10. Growth

Technical expertise is completely absent in this list. A number of sources can be found that lay stress on the same factors.

It sounds weird when it says that you can start an IT business without having any technical knowledge. However, it does show that in the modern world there are no barriers or hindrance like the background in the way of success.

The answer is simple. If you have good leadership qualities, the plan, and a dedicated team then you can always find a way to outsource the technical stuff.

What are the Advantages of Outsourcing?

One of the key elements of the success of online companies is outsourcing. It has been and continues to be a determinant of success.

Noah Kagan, a former Facebook employee, and serial entrepreneur outsourced services while developing AppSumo. Jason Fried also relied on outsourcing for Basecamp.

In order to increase the success rate and improve development, Alibaba, Google, Slack, Skype and GitHub outsourced stuff to an IT partner. With these facts, you can see that outsourcing is beneficial because of the following:

  •  - Reduction in operation cost- If you are outsourcing stuff then you might not feel a need for retention, training, hiring employees, IT infrastructure and office real estate.
  •  - Less distraction- You can invest your time and focus on things that require your attention and are crucial to the company.
  •  - Gives access to highly qualified IT professionals- You get to work with the best and competent people.
  •  - Efficiency: You can avoid the fuss and hassle because the people you hire know what to do and they can complete the job quickly.
  • Gives a better use of internal resources- You can give employees tasks that suits them better.

These benefits are enough to establish the crucial role of outsourcing in the success of an IT startup. However, there is certain caution that comes with outsourcing and that is you need to choose the right IT partner.

Each IT outsourcing provider is different. Some lack the skills or resources and some are not good enough to be given the task. This is the reason that choosing the right IT partner is essential as one wrong decision can destroy your business.

What to Look for in an IT Partner?

Choosing an IT partner for your startup is an important decision. Do not rush things and take time to reach the right one. Following are some of the factors that should be considered while choosing an IT partner.

  •  - Reliability- Outsourcing is regarded as a business relationship. Having no background in technical education, you need someone who can guide you well and help you in completing projects. While choosing a partner you need to check the performance of a company and its history.
  •  - Expertise- You need to be aware of your needs and requirements and only then you can convey well to the company. You should be sure that the IT partner you are choosing has all the expertise that you expect to see.
  •  - Communication-  IT can be nerve-wracking sometimes and you need a partner who is available. You need to see if they are available to talk when you need them or are they giving you a prompt response when you need it. This would determine the success of your partnership in the long run.
  •  - Experience- You need to look at the past record of the company. Who has it worked with? How was the performance? What results did they produce? A good history of delivering successful projects can end your search of a competent partner.

Testimonials- The feedback from previous clients is important. You need to look at the client’s feedback about the company. Were they satisfied or not? Have they recommended them? Testimonials can answer a lot of questions.

 

What did We Learn?

If your tap is leaking you do not fix it yourself but seek the help of a plumber. Similarly, if you need help in the IT department you go to the person who has knowledge.

If you do not have a technical background, fret not and rely on outsourcing to get successful results.

In this way, you will get time to focus on things that need your attention while your partner can look into other stuff. It is one of the easiest ways to grow a business at an economical rate. If you have found the right IT partner then do not let them go.

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