There are quite a lot of points of view on whether to use outsourcing teams or develop your product and brand in-house. In order to establish whether to outsource your product development or create it internally, you need to ask the following questions
1.What are the Goals of Your Business?
Your business goals/objectives and the type of product you want to build are the primary factors in deciding on the product development technique to take.
Are you creating a product that has not been lucratively tried before? Or are you just manufacturing an improved mousetrap? For the former, you’re confronted with a lot of fears concerning market/product fit and concept validation, because your hypothesis is not yet proven by any current product on the market.
Are you prepared to take the undue risk by employing a team in-house on an idea or concept not yet proven? Startups tend to outsource in this situation.
However, your risks are much lower if your product falls within the second category as your product idea has already been confirmed through available products that are doing well. It is now up to you and your ability to sell the idea to possible clients and iterate on the product growth.
2. What’s The Funding Available to You?
Having enough funds available will have a tremendous impact on your decision to build in-house/internally or outsource. A good number of projects are outsourced mainly for budgetary reasons. It’s noteworthy that outsourcing the maiden edition of your product can be far more economical.
A good number of the renowned products of today were outsourced in their first days. Achieving the right market/product fit in the early stages of your startup should then be of major importance.
Therefore, if outsourcing tech will help you reach the market faster and at a reduced cost, use that strategy to the level where you will be able to establish customer demand for your product.
3. When Do You Want To Market?
In fact, no entrepreneur or a single startup would want to get to the market later than faster. Conversely, there can be a lot of them to whom reaching there rather quickly is particularly vital. Outsourcing product development is the obvious choice in those situations.
Creating a product in-house necessitates a team that comprised of quality assurance experts, engineers, UI/UX designer, and a business analyst. All these roles are highly dedicated and significant to any product development.
On the other hand, getting a team ready in-house can take between three to six months. But if you outsource, you can really get your product to market within that same time frame.
Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! Inspires entrepreneurs to build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.