Negotiating the many start-up learning curves - Outsource or In-house software development?

In the first 18 months of a digital healthcare start-up, the learning "opportunities" (hurdles) keep coming. This blog addresses some pros and cons of an Outsourced Software development team for a mobile and web-based digital healthcare application suite.

As a newly experienced CEO/ Founder of a start-up healthcare company in late 2019, I found the idea of working out how to outsource or create an in-house software development team for a new mobile platform app somewhat daunting.

Business mentors experienced in software development gave me clear, practical advice. At the time, I didn't have much technical software knowledge or hands-on experience working with IT software companies. Still, I quickly understood the importance of building effective software development teams needing to reach a broad audience.

Here are some expected benefits and risks of using an outsourced IT software company to develop a mobile app for a start-up company.

Benefits of Outsourcing - the pros

• Cost-Effective: Outsourcing the development of a mobile app can save costs on hiring an in-house team. This can be particularly beneficial for start-ups that have limited financial resources.

• Access to domain expertise: Outsourcing to an IT software company can provide access to a team of experienced developers who have worked on similar projects. This can help ensure the app is developed to a high standard and meets industry standards.

• Time-Saving: Developing a mobile app is time-consuming, and outsourcing can help save time and resources by allowing the start-up to focus on other challenging aspects of the business.

• Achieving Scalability: Outsourcing can make it easier to scale the team up or down as the project requires, making it easier to manage resources as the company grows.

• Incorporating the latest Technologies: An IT software company can provide access to the latest technologies and tools, which can help ensure that the app is developed to a high standard and is efficient.

Risks of Outsourcing - the cons

• Communication Barriers: Outsourcing can create communication barriers, mainly if the IT software company is in a different country or time zone. Or are they becoming increasingly busy with other projects?

• Maintaining a high level of Quality Control: Outsourcing can create quality control issues if the IT software company doesn't have a robust quality control process.

• Intellectual Property Protection: Outsourcing can create intellectual property protection issues if the IT software company doesn't have a robust intellectual property protection process.

• Poor Value / Cultural Fit: An outsourced team may not fit with the start-up's culture and values, leading to potential conflicts and misunderstandings.

• Data Privacy Concerns: Outsourcing to countries with lax data privacy laws and regulations can put the start-up's sensitive data at risk of theft or unauthorised access.

I elected to start with an outsourced team. After due diligence, we commissioned a white paper on the best mobile app development for start-up ventures. We then commenced interviewing several credentialed companies. We selected an excellent Sydney-based team. They were switched on, experienced and knowledgeable. We were off and running...

Conclusion

Outsourcing the development of a web-based / mobile app can be a viable option for start-ups looking to save costs and access expertise they don't have in-house.

However, it is essential to be aware of the risks associated with outsourcing and to take steps to mitigate them. Therefore, start-ups should do their due diligence when selecting an IT software company, including researching their quality control and intellectual property protection processes.

Effective communication channels should also be established to ensure the app meets the start-up's requirements. By carefully considering the risks and benefits of outsourcing, start-ups can make informed decisions and successfully develop a high-quality mobile app.

In the first 3-6 months, all can go well in a carefully chosen process (honeymoon phase). In our experience, this was when (post six months) the risks started to surface. But isn't that normal in any working relationship?

What's essential is anticipating the issues, defining your needs, adjusting to new demands and optimising workflows.

Additional blogs will explore these areas in an ongoing narrative over the next few weeks.