Why does it make sense for Startups & Scaleups to Offshore Software Development?

Dedicated software development team

Having a great idea doesn’t mean you have the technical expertise required to put it into production. Perhaps there aren’t enough professionals with experience in the specific technology you need to work with. Maybe you need more time & energy to focus on business aspects or innovation.

Both startups and established businesses strive to deliver software products faster and at a lower cost as the market grows. It is quite a challenge if you think about it, since scaling up requires adequate wiggle room to experiment with teams, explore technologies and build a scope as per scale.

Which is where the premise of Offshoring software development or that of a Dedicated team comes up.

By 2022, the market for IT outsourcing is expected to reach $409 billion. No one has ever thought about Eastern Europe, India, or South America as possible development centers. However, they are as famous as Silicon Valley now.

Let us take a step back…

Being a tech startup, what’s your main goal?

Obviously, to put your idea into production & bring it to market.

You will be engaged in many activities, such as meeting with investors and partners, devising strategies, measuring analytics, adding features, etc.
At the backend of your operations, though, there is a team that is supposed to handle what goes into your product. Thus, the hiring part of the team is crucial.

Why Are Scaleups Hiring Offshore Software Development Partners for Productivity Enhancement?

There are now businesses with less than 100 employees and zero offices – and this can largely be attributed to remote technical talent. The size of a scaleup business’s workforce used to be determined by its size, but these days it is more about how many people it employs.

Avoid in-house development task

Scaleups are increasingly relying on offshore software development partners. Remote talent has been precious for businesses operating in high-cost areas or tech hubs. By taking this approach, they can avoid the challenge of building and scaling an in-house team – a task that can be difficult and expensive.

Quick plug: Hire a team of remote developers at Netsmartz with decades of experience providing top-quality software solutions. Build your team with our skilled IT professionals (onshore, offshore, nearshore) that align well with your business goals & culture. To learn more about our engagement models, feel free to reach out to us.

No office space required & the team is accessible

A remote team requires no office space and little internal investment, which is also very convenient. Companies can keep their operational costs down by avoiding HR necessities like benefits, pensions, and bonuses. It also allows senior staff to focus on getting products to market and growing their business.

A ready-built team of technical professionals

Scaleups can jump right into action because they instantly have access to partner experience and a ready-made team of technical professionals. This speeds up the development process and gets features to market quickly. This can often make all the difference in driving growth and fulfilling business ambitions.

Moreover, this improves speed to market, enhancing development efficiency as the team already understands technical best practices learned from previous experience.

Alleviating the Strain on Internal Staff

By bringing in an offshore software development partner, startups can alleviate the pressure on their internal teams with less reliance on third-party developers and freelancers. For example, offshore development teams can pick up time-consuming but straightforward jobs or handle more complex tasks like developing websites and mobile apps for startups.

Why Do Scaleups Work with Offshore Software Development Firms?

When scaleups engage an offshore partner, they can often develop competitive advantages that give them an edge in the market. Here are a few reasons:

Control Over Money

46% of startups fail because they run out of money, so managing cash flow this way makes sense for all involved.

More control over costs allows money to be more effectively managed and allocated when needed most. It’s easy to see why scaleups embrace offshore software development partners since their flexibility can differentiate between success and failure.

Technical Expertise

Scaleups cannot afford inefficient, inexperienced, or compromised technical delivery. It’s critical to find specialists that can deliver above and beyond expectations. When it comes to optimizing resources for niche projects, this is especially important. Find specialist developers who can provide outside of their comfort zone.

Distributed workforce approaches can reduce the need to hire staff by tapping into the global talent pool and ensuring that technical skills and knowledge are not barriers to their ambitions. By eliminating location limitations, distributed teams can be built quickly at an affordable cost, enabling rapid scalability and efficiency.

Build an MVP Successfully

In reference to a recent McKinsey report, 43% of organizations are currently experiencing skill gaps.


As a startup founder/cofounder, you need your MVP to run smoothly and have as few bugs as possible. In-house teams face quality assurance challenges since quality control is no laughing matter. The developers may be debugging their code, but you need to focus more on quality than usual.

Also read, How to build a Minimum Viable Product (MVP) for a Successful Business

To Wrap Up

Offshore development reduces costs and delivery time. It will work well for startups and established firms if they have small projects. You can approach offshore partners with a bare idea or a developed one, or even after the software is released.

Scaleups that embrace an offshore software development partner will supercharge their productivity, reducing the time it takes to get features to market with the best professionals for daily job delivery.

Getting started

Would you like to save your startup’s budget by offshoring IT? We’ve got you covered. We have covered many industry insights on how to get started with IT outsourcing, from benefits to who it will work for, how offshore software development is the future, how to build an offshore team, and much more. Contact us now!


Why does it make sense for Startups & Scaleups to Offshore Software Development?
John Ogden
Published on
April 12, 2022

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