New companies need to invest in software development. This can be done by creating their own development team or hiring a software consultancy.
We can say that most startups are tech related and not only because their main service is an app, a platform or an electronic device; but because even if they sell fruits and vegetables, they can do it using a website, social media or an app. This means that for optimizing products, sales channels, leads, brand awareness and others, companies require software, so the next step is to make the best decision about how to get it. In this article, we are going to focus on hiring services from a Software Consultancy.
My startup team doesn’t have a strong background in Software Development
This is a very common scenario due not every entrepreneur has a background in tech fields. When this happens, a good option is to look for a Software Consultancy that can guide the company in the software development process.
Because this Software consultancy is going to be a very important part of the startup team, we recommend taking the time to solve all questions, to check if there is a good feeling between parts, how fluent the communication is, does the consultancy have a propositive attitude or are they more passive, etc. Additionally, there are different approaches to hire software development services, you can get it by hours, by project, or by alternative methodologies like “Story Points”.
If you need a specific task to be done, it’s recommended to hire a Scope-based service, so the deliverables, the budget and the duration are defined. On the other hand, if you require a continued development service (which is the case for most companies) it’s recommended to hire : - Staff augmentation: Pay by team member. - Monthly plan based on development hours: Pay by hour. - Monthly plan based on Delivered Story Points: Pay by Story Point Delivered.
My startup doesn’t want to enroll employees.
There are several aspects to have in mind when a company decides to hire employees. There are different requirements regarding the state, the country, the tasks to be done, among others. For startups that don't want to deal with these matters, hiring a software consultancy is a very good option.
My startup wants to optimize the expenses.
A strategy to optimize expenses can be hiring services from a company based in developing countries.The exchange rate between dollar and other currencies may bring savings to companies based in most developed countries.
Additionally, differences in cost of living between countries, also may cause lower fees. This is something good for both startups and software consultancies, due the two parts are going to be happy with the budget.
When someone decides to go for this approach, language and time zone differences have to be considered. These two matters affect communication quality.
Hiring a Software Consultancy benefits summary
Technical help to create solutions when the knowledge is not part of the startup team.
Possibility to adapt the work modality to the actual requirements of the startups (Scope-based, time-based, staff-based, others)
Not having to enroll employees and dealing with all the matters related to this task.
Optimizing expenses compare to direct hiring of local talent for startups based in developed countries.