Outsourcing Product Development-Doing Things The Right Way!

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Planning to outsource your next product development? Download our Complete Guide To Outsourcing Product Development and get the complete analysis of the outsourcing situations, advantages & cost included in the endeavor. It will help you to calculate the cost-benefits of outsourcing, and some tips and strategies to succeed.


The evolution of incredible customer-first digital technologies in the Global markets has changed the way businesses work. Most of the organizations today are staying competitive by expanding their workforce with additional outsourced professional teams that make them more tech-efficient and too with an improved ROI.

For Start-ups especially, developing a product or service and launching it into the market rapidly and efficiently requires a pool of dedicated professionals and a well-defined process. You need to ensure your startup offers value in terms of quality, innovation ,and convenience, irrespective of having limited resources. Competing with the competitors in the fast running digital space is necessary for survival. Outsourcing product development enables businesses to tap the expertise of companies that have created well-defined systems for managing the process.

Also Read: Remote Product Development: Everything You Need To Know

But remote product development isn't just for start-ups. Businesses of all scale, across all domains can utilize the strengths of a skillful remote tech team. Whether you need to get that complex feature executed or want to get one or multiple products completed and out in the market, your extended technical team can help!

When Do Businesses Outsource Their Digital Product?

Check out in what scenario a product company, businesses, or Startups outsources:

1. When some features are required to be modified or create a new one

One of the factors, when small businesses or startups outsource their digital product is the modification in the existing features or developing the new one. When the complex coding efforts are required to design and develop the features of the product, we outsource as we don’t have the right set of professionals.

2. When remote teams are required to perform a niche task

Sometimes high-level expertise is required to develop a niche of the product. In such a case, entire team is hired which we called as remote teams to get things done in the right way. Remote teams are on-boarded and collaborate with the in-house team when developing a product.

3. When the entire product development is required

Sometimes enterprises or startups outsource the entire product development-from ideation to delivery. The product development lifecycle includes planning, development, design, testing, delivery, post managing product. Startups find it easy to outsource the complete product development to the remote team as they don’t have sufficient resources.

why outsource

Source: Bloggersidekick.com

Advantages of Outsourcing Product Development

Let's dig out some of the key benefits of product development outsourcing to India or any other outsourcing destination that help businesses thrive ROI and growth for future expansion.

1. Reduced Labour cost

Managing a budget is quite a challenging job for startups. But, all thanks to outsourcing product development, it provides a global talent pool at a low cost. With a large no. of talented professionals working on your product design and development, the faster things get done and the project is exposed to a myriad of opportunities. Also, you can divert your attention to crucial tasks and keep your in-house team stress free.

2. Control Capital cost

Cost-cutting is not the only reason to outsource, but it's certainly a major factor. For small businesses, product outsourcing helps by converting fixed costs into variable costs, releases capital for investment, and allows you to avoid large expenditures in the early stages of your business.

Also Read- How To Build A SaaS Product?

3. Easy Scalability

It may happen that the scope of the product development either grows or reduces with some changes that need to be implemented while doing product development. In such a case, the in-house team should be scaled up or down which is extremely difficult. It is difficult to find another team member with the same set of skills.

But with outsourcing, such problems never arise.

4. Raising the level

Most small businesses simply can't afford or capable to manage the in-house services that giant companies offer to the customers. Outsourcing supports small businesses to think and act "big" by utilizing the same economies of scale, efficiency, and expertise that large enterprises enjoy.

5. New Projects Are Welcomed

Your outsource team is experienced in the niche of your product and offer you more solutions to problems or even suggest creative ideas to make your development successful and demanding in the market. With the more efficient and active employees involved in product development, your product is exposed to numerous opportunities. The outsourcing process is not as easy to implement as it requires a lot of effort and resources.

5. Embracing Positive Work Culture

A business owner whether owns a (startup, small enterprise, or an MNC) wants a positive work culture and a streamlined workflow in the organization as it ultimately leads to a higher level of productivity. Product outsourcing benefits businesses by embracing a positive work culture and a mutual understanding between the teams.

78% of respondents in Deloitte’s survey say they feel positive about their outsourcing relationship with other companies.


6. Lower Risk

Developing new products comes with a lot of risk factors, but when outsourcing is there, the risk is comparatively low. The product development done by in-house teams involve uncertainities in terms of feasibility, expertise and budget. On the contrary, the outsourced team having more knowledge and experience so ,therefore, you can low the risk.

7. Focussed On Core Objectives

For startups, it’s crucial to focus on the high priority things. The biggest advantage outsourcing provides is making you free so that you can focus on core objectives. 15% of people around the world outsource to access expertise free up time and more focus.

When you have a product development team with immense knowledge and efficiency on a particular project, it means your in-house team has enough time to focus on other tasks.

8. Deliver Faster

Having more knowledge and expertise in the niche of the product, the outsourced product teams develop products faster. They are efficient in developing products and time management. When a company hires a set of expert professionals that focuses solely on a product, it is bound to be stronger, greater, and faster when it enters the competitive market.

9. Implementing New Technologies

The upcoming new technologies requires in-depth knowledge and rich experience. The outsourcing provides the benefit of hiring talented and experienced professionals that can help you in product development faster and too with trending technologies.

The outsourced team is all aware of the newest developments so they can help you respond quickly related to market trends also enter the market in a smart way. For instance, if you have a great app idea, then what to do next. In this case, the outsourced team can help you with the latest app features and design patterns.


Source: Deloitte

Concluding Lines

Outsourcing is not just limited to passing some tasks to another team, it is a lot more than that. Outsourcing is collaborating with a firm having deep and specialized knowledge. A Good remote team works collaboratively with the in-house team in achieving the set benchmarks in the way to a common goal-delivering successful product.

Hiring remote product development teams plays a pivotal role in the success of an organization. There is no better way to get faster results and too with efficiency and efficacy.

Are you planning to get your product development outsourced? You just need to search the right outsourcing company, or hire remote developers, to get your product developed with great expertise and intelligence.

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Topics : Remote Teams

Kanika Gupta

Written by Kanika Gupta

Kanika Gupta, a professional tech writer works as a content writer in Classic Informatics, a leading web development company. She loves to write master tech pieces and let readers connect with them fluently.

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