Outsourcing MVP Development: Pros, Cons, and Best Practices
Global IT outsourcing is predicted to reach a spending volume of half a trillion dollars in 2023, reports Customer Think. In 2022, the total outsourcing spend hit $700 billion, and 72% of global outsourcing contracts are in the IT services sector.
But does outsourcing make sense for building your startup’s Minimum Viable Product (MVP)? We’ve all heard the apocryphal horror stories about outsourcing: Projects gone wildly over budget, a poor product at the end, and the freelancer who simply disappeared.
In these times of uncertainty in the tech sector, outsourcing MVP makes more sense than ever, but only if you do it right. There are pros and cons to outsourcing. If you understand those pros and cons and how to navigate them, you maximize your chances of a successful project.
Pros of outsourcing MVP development
The three major pros of outsourcing MVP development are:
- Access to specialized expertise
- Cost-effectiveness
- Faster time to market
Access to specialized expertise
Finding the right talent for a project can take months. If you need extra skills during the project, you have to go through it all again.
If your needs are few, you might get away with hiring a freelancer for those occasional needs, but onboarding every freelancer for every need is a sure way to bring your project’s development speed to a grinding halt.
Outsourcing gives you access to a wide pool of experts who can “plug and play” into your project with minimal onboarding time.
Cost-effectiveness
Outsourcing your MVP saves both short-term and long-term costs. You don’t have to use resources to find talent or deal with the additional costs and fees of hiring a full-time employee.
Faster time to market
Outsourcing partners usually offer dedicated support for your project, whereas in-house developers might be inundated with other tasks.
Outsourcing companies can also scale to your needs more quickly because they have the additional resources when needed and can thus tap specialist expertise more easily.
Cons of outsourcing MVP development
It’s not all sunshine and roses when outsourcing MVP development, and you need to account for the following cons and take measures to avoid them.
The three major cons of outsourcing MVP development are:
● Potential communication issues
● Intellectual property (IP) concerns
● Quality risks
Potential communication issues
One of the drivers of outsourcing was the cost discrepancy between less established markets and more established Western markets. Less wealthy countries such as Vietnam and India quickly became hubs for outsourced services. Although the developers they offered usually were of excellent quality, the language barrier proved challenging.
Different time zones can also make communication challenging.
Intellectual property (IP) concerns
It’s essential to verify that:
● The code being used in your MVP is not the IP of someone else
● You will own the rights to any code written
This can lead to several murky areas, such as using open-source code in a proprietary app. It all needs to be worked out clearly and in writing before hiring the outsourcing company.
Quality risks
Depending on the outsourcing company culture, you could be treated as “Just another client.” The development team is not as invested in your project as if you were using an in-house team. This can lead to poor-quality code and more bugs than expected.
Ensure that the outsourcing team you hire identifies closely with your project and owns it fully.
Best practices for outsourcing MVP development
At Browserbite, we’ve carried out dozens of successful outsourcing projects for clients and take care to observe the following successful practices. Our customers never have to worry about these points or any of the cons listed above, but you should know the best practices if you work with companies with a different company culture.
Our recommended best practices for outsourced MVP development are:
- Define clear objectives and requirements
- Choose the right outsourcing partner
- Establish effective communication channels
- Protect your intellectual property
- Monitor progress and maintain control
1. Define clear objectives and requirements
An MVP is not a prototype; it also isn’t a full-scale revenue-generating product with all the bells and whistles. Before starting the project, define the goals so everyone is on the same page.
2. Choose the right outsourcing partner
Factors that might influence your decision include:
● Timezone
● Language
● Company culture
● Price
● How long they’ve been in business
● Proven case studies
● Client list
Few problems exist when dealing with a responsible outsourcing company that has a similar work ethic and company culture to your own.
3. Establish effective communication channels
Insist on regular progress updates and how to receive these, such as through a Slack channel or Microsoft Teams. Implement the correct collaboration and project management tools, so you’re constantly in the loop.
The idea is not to have you micromanage the operation but to be kept aware of all its developments.
4. Protect your intellectual property
Get all the paperwork in order, including NDAs, copyright agreements, and other legal documentation, to ensure you own the rights to the work.
5. Monitor progress and maintain control
Finally, keep your finger on the pulse. If the progress reports indicate a problem, follow up with your company contact. Review project milestones and make sure they’re met. If they’re not being met, try and understand why.
Try to understand the problem before jumping to conclusions. But if it becomes clear that the outsourcing team isn’t producing, pull the plug fast and find a more reliable company to outsource your MVP to.
Work with an expert outsourcing team with a strong work ethic
Choosing an outsourcing partner for your MVP is not quite like selecting any other vendor because your company will strongly depend on the outsourcing company’s performance. An MVP can be the make-or-break point for a startup.
At Browserbite, we pride ourselves on our strong work ethic and expertise in delivering precisely what our customers need — and on time. We’re also a startup, so we understand the need for rapid development that doesn’t sacrifice quality.
Check out our case studies to see for yourself.
We’ve helped numerous startups successfully launch their MVPs. Our team of skilled developers and experienced project managers is ready to help you bring your vision to life, guiding you through the entire process, from ideation to launch. Book a no-obligation call today to learn more about our services and expertise.
