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How Startups Can Benefit From Offshore Software Development

Let's make something clear - to succeed as a tech startup today, you need a scalable product. Most tech startups go the solo route when it comes to building their software, but this is an inefficient and cost-ineffective approach to software development. Traditionally, startups would use software development outsourcing (or simply "outsourcing") to scale. This can help a great deal in the beginning, but sooner or later you'll reach the limits of what an offshore team can provide in terms of quality, responsiveness and pricing. If a technology startup were to instead pair up with a software development team extension, they could see rapid improvements in their product's functionality and quality while saving them a ton of money in the process. At this point, it's time to think about a software development team extension.


What is a software development team extension?

A software development team extension is pretty much what it sounds like: a company that specializes in software development will provide you with a developer or developers who can join your team and help augment its capabilities.

A software development team extension is a hybrid model of outsourcing that allows you to outsource your projects while keeping your IT staff fully integrated. When you work with dedicated developers, you can choose when and where they work, and how much time they spend on specific tasks. This allows you to outsource various parts of the project without disrupting your in-house team or compromising quality.

Working with a software development team extension means that you aren't outsourcing your projects to a third party company. Instead, you are working with a remote team of dedicated developers who act as an extension of your team. You can hire one or two developers who specialize in certain technologies, or you can build a full project team from scratch. You will be able to communicate directly with your developers and even manage them like any other member of your team.

This option is usually much more cost-effective than hiring an additional employee and can be a lot less hassle than working with an outsourced team or dealing with a freelance developer.


How can a tech startup benefit from a software development team extension?

One of the most important resources for a technology startup is software development. Without it, your company cannot function efficiently and may end up losing money from not being able to deliver what customers want or need on time. A software development team extension could help solve this problem by giving you access to skilled developers who will work with your existing staff on projects that require coding skills but would otherwise take too long for one person alone. This means you won't have any delays because there isn’t enough time for everyone else in the office.


What are the differences between a software development team extension, outsourcing, and an in-house development team?

Everyone has heard of outsourcing, which is the practice of having a third party do the bulk of your work. The idea behind this is that if you outsource some of your work to someone who has the hands-on knowledge, they can do it faster and at a lower cost. This makes sense if you want to save money and focus on other things, but what happens when you're not saving money or time? What if you don't have any money or time to spend?

Software development team extensions are an alternative to outsourcing. You might think that a software development team extension would be more expensive and take more time than outsourcing, but you'd be wrong. Software development team extensions are beneficial because they offer several perks over outsourcing.

In-House development team. This is the traditional approach to building a software development team. Recruitment, training, and overhead costs can be expensive. You'll also have to pay attention to employee retention, which takes time and more money. It's a good option if you have a lot of experience with software development—otherwise, you may not know what you're doing and end up wasting resources on people who won't produce results. But if you've got the basics down and want control over the team, an in-house strategy could be the way to go.


Why extend your team with developers located in an offshore location?

As a startup, you'll be in the market for software developers. You may consider hiring someone based in San Francisco or, even better, San Francisco Bay Area. But what if your company is small and you don't want to pay the premium for a Silicon Valley-based candidate? What if you can't find anyone remotely close to your location who's as good as the ones you've found on LinkedIn, and the local talent pool doesn't have much depth?

There are several reasons why you may want to consider moving part of your development team offshore:

A team extension is easier to scale than outsourcing

One of the biggest problems with outsourcing software development is that it can be tricky to scale. It takes time and patience to find a partner whose work ethic and quality are up to your standards, and once you do, it's not guaranteed that they'll be able to meet your deadlines when the time comes. If your project is delayed due to their unavailability or unwillingness to hire additional staff, you could end up losing the opportunity altogether. Luckily, there are other options out there for startups looking to get a leg up on their competition.

One such option is a team extension, which is beneficial both in terms of speed and scalability. A team extension is essentially an expansion of your current in-house team, where you have full control over the hiring process without having to do any of the work yourself. You simply provide the specifications for what kind of person you're looking for—the skill set, experience level, etc.—and let the experts go out and find candidates for you. This can be especially helpful when looking for people with very specific skill sets who might not be local or may not even reside in the same country as your headquarters.

A team extension is easier to communicate with than outsourcing

Technology startups face a lot of challenges beyond developing the right product. There are funding, marketing, and legal issues. The last thing you want to worry about is communicating with your team extension—but that can be a serious hassle with outsourcing. When you're outsourcing your development needs, it's easy for things to get lost in translation. A team extension is more likely to understand your startup lingo, and they'll have more experience working on projects like yours.

A team extension is more affordable than hiring additional in-house talent

Many startups struggle to afford the rising costs of IT talent. This is because experienced, highly skilled software developers and IT engineers command an impressive salary. However, hiring a software development team extension is a more affordable option. This is because your company will be able to take advantage of a large talent pool residing in a country with a low cost of living.


Why Should You Consider Hiring a Software Development Team Extension?

When your startup grows, so does the complexity of its codebase and infrastructure. Your workload increases as well and it's impossible to do everything without sacrificing quality. This is when a software development team extension comes in handy. They can help you develop new features, maintain and scale existing products, and achieve your business goals faster.


Top 5 Reasons Why Your Tech Startup Should Benefit From a Software Development Team Extension

The competition on the startup battlefield is fierce. With the number of tech startups growing exponentially each year, it's getting more and more difficult to succeed. Of course, you want to do the best job possible when it comes to your business, and you want to make sure you're doing everything you can to properly implement top-notch software solutions. You know that software development is an important part of your business and that it can directly affect the productivity, performance and value of your company. What you may not realize is that many startups are getting software development team extensions for some or all of their software development needs, which has several benefits.

Save money and time on the hiring process

If you're a tech startup, you already know the drill: suddenly, a bunch of new users have started coming to your website and you realize that it's time to upgrade your software. Since this is a new experience for you, the first thing you'll need to do is hire some engineers who can address the problem. But before you move forward with hiring people, let's consider an alternative option: extending your team by working with a software development company.

Why do this? It will save your startup money, time and energy. First of all, if you had to create your engineering department from scratch, there would be numerous costs associated with hiring and firing people until you find the right team for your needs. You would also spend a lot of time on the hiring process—interviewing candidates and trying out various solutions until things are working as they should be.

Another advantage of working with an extended team is that there won't be any uncertainty about whether or not they'll deliver results. They are professionals who know what they're doing and can be relied on to get things done promptly. Finally, they'll bring a fresh perspective to the project at hand, which will help make your software even better than it was before.

A cross-functional development team from day one

Having a cross-functional development team from day one is ideal. When you are extending your development team, you can hire people from different backgrounds and skillsets who will bring their unique perspectives to the table to achieve one common goal for your company.

It gives your startup the ability to solve challenges faster, test out new ideas and build innovative products.

Here's an example: Your startup develops a mobile app and also creates a web platform to support it. Your in-house team builds the first versions of both products and launches them. Now that the basic functionality is there, you want to improve those products and add some new features.

In this case, it makes sense to hire a QA engineer with mobile app testing experience to help you test the app internally before releasing it to beta testers, as well as externally. Then you can hire an API developer who can build an API for the web platform that can be used by other companies so they can access your data and integrate it into their apps or use it on their sites.

With this extension of your development team, you have specialists who focus on specific aspects of product development and who work closely with each other daily to provide better performance for customers.

You get direct access to expert team members

The developer team you hire is conveniently located in another part of the world, which means you'll have to communicate with them remotely. But the upside is that you'll have direct access to expert team members. You can share your vision for the product and get immediate feedback from the experts who know exactly what will work and what won't. This allows you to make changes early in the development process, which will save you a great deal of time and money in the end.

The ability to speed up the development process, grow your tech startup faster and reduce risks

Dedicated software developers can help any startup scale faster and grow successfully. It's important to find the right team of experts, however, as that can make a huge difference in how your company develops. You want people who are available, cost-effective and able to tailor their skills to your needs. Here are some reasons why you should consider hiring a dedicated development team to enhance your startup.

Speed up the Development Process

Startups often struggle with getting their products on the market fast enough. According to Startup Genome, more than 90 per cent of startups fail because they lack market need—they're not making products that solve real problems for consumers. A dedicated development team can help you speed up the product development process so that you can get your product out there sooner and start finding out whether or not it is meeting customers' needs.

Grow Your Tech Startup Faster

The ability to get products out quickly gives startups a huge advantage over established competitors that have to make sweeping changes to reach new markets or offer new features. Tech startups can grow quickly by offering innovative tech products before competitors do, but only if they're able to get those products out fast enough. That's where a dedicated team of software developers comes in handy—they'll help you get your products out and into the hands of customers ASAP.

You get access to expert knowledge and resources at a fraction of the cost

You'll get access to expert knowledge and resources at a fraction of the cost it would take to have a dedicated development team all your own. Plus, you'll save time by not having to go through the trouble of hiring new employees. Your pool of developers is already carefully picked, so you don't need to worry about whether the people you'd hire will be up to par with your startup's needs.



Extending your team with developers located in an offshore location can be a boon to tech startups. Software development teams based in India can help shorten development cycles, save money on salaries, and eliminate the need to go through a difficult hiring process.


At Accoty, we help companies like yours in building their software development team extension to work only for them in India. If you are still not sure whether you want to build your team tension, you have two options; 1. You can keep googling for the information, or, 2. You can contact us and find out more about how a dedicated development team extension can help you achieve your goals faster.