Every startup is unique, but generally all travel down a similar path regarding innovative solutions. Having a R&D team for developing tech solutions is the way companies use to differentiate their value offer. However, hiring a complete team with multidisciplinary knowledge may be quite expensive , making software development for startups a high cost task.
Different approaches exist to deal with this matter.
Software development for startups - Outsourced R&D consultancy and development team
This is an interesting approach when a Startup team has a great business idea, but not technical background.
Outsourcing the complete development solutions, from conceptualization to implementation, could be useful as well for companies that are starting their digital transformation path.
This approach could be less expensive than others due it is not required to hire a complete team with multiple talents to work inhouse. There are software development companies that can provide the holistic solution for reasonable fees.
However, extreme care has to be taken with the contract modality. A working hours based contract could be dangerous for companies due the loss of control in their budget and schedule. Defined Scope Contract is recommended for having more control of time and money during the development process
Software development for startups - Inhouse R&D strategic team and Outsourced development team
This approach works well for startups that have technical knowledge in their “spine” but could need additional help with coding or complementary background.
For example, a company that needs to develop an special AI based feature for their product, but doesn’t count on that specific background in their team, could make use of this approach.
Software development for startups - Inhouse development team
This is a great approach for startups and for any kind of company. Having the whole team inhouse, can make things flow smoothly. The downside of this approach is that it requires a large budget, because a proper development team should involve different kinds of talents. Hence this may be difficult to afford for some startups.
It’s typically used when the core of the business is the technology solution.