5 IT Outsourcing Case Studies Every Startup Can Learn From
High tech companies have grown so much and outrun their competitors globally by cooperating with remote teams and outsourcing. For the last few years, majorly due to the Covid pandemic, many companies were forced to work remotely, resulting in an increased number of successful outsourcing examples. Many successful firms opt for IT outsourcing, such as Whatsapp, Oktopost, Klout, Slack, Pricena.
Because there is a skills shortage in the digital business, outsourcing people is a cost-effective alternative. It reduces the software development costs and expands the pool of expertise available. As a result of the excellent outcomes of these case studies, business owners have discovered that remote work and outsourcing are realistic, if not desirable, solutions for promoting their companies’ growth and development during and after the crisis.
These companies were investigated to learn how they continue to expand and compete in the international market. Offshore developers are hired by global organizations that want to concentrate on their core business. Many organizations are outsourcing their HR, accounting, and payroll departments in addition to tech staff to keep their businesses lean and hyper-functional.
Despite numerous successful outsourcing cases by large corporations, many startups remain wary of outsourcing web development to other countries due to worries about trust and delivery. The practice of major corporations, on the other hand, demonstrates that the reality of outsourcing is quite different. To dispel certain myths and draw some lessons for cofounders, we’ve compiled a list of successful Case studies on outsourcing from large corporations.
Successful Outsourcing Examples
Pricena first began in 2013 and has been providing reliable price information on home appliances and electrical equipment across numerous stores in the United Arab Emirates ever since. Later, in June 2015, this company teamed with Daxx to hire full-stack and mobile developers who assisted in developing Pricena’s iOS and Android apps and the web version. Pricena was named the Online Startup of the Year in November 2015 after its Android App received over 50,000 downloads and 4.3 stars on Google Play.
In 2013, Oktopost, a social media management software, was introduced. They employed 22 people in three countries: 14 in Israel, 3 in Ukraine, and 5 in the United States. However, this company recruited software developers through Daxx in 2018 and expanded its outsourcing program. It even adds flexibility to the business entirely due to outsourcing firms. The key benefit of establishing such a development hub in a remote location is that outsourcing firms may increase the available skill pool.
“I can surely claim that offshore development helped us extend our roadmap and build the things we weren’t able to develop earlier,” Liad Guez, Oktopost Co-Founder and VP Product remarked.
Slack is an instant office collaboration application that includes topic-based chat rooms, private groups, and direct messaging. One of the most well-known firms, Slack owes much of its success to outsourcing. The company recruited MetaLab, a Canadian design firm, to assist them in turning the beta version of their business strategy into a widely successful product. They’ve hired freelancers to aid with web design, logo design, mobile and web applications, and other tasks. Slack’s tale exemplifies outsourcing success and exemplifies why it is such a potent instrument for business growth. The company amassed a $250 million investment for a total valuation of $5 billion by outsourcing to employ creators to construct their website, logo design, and mobile applications, making $5 billion in July 2017. By May of 2018, the users had surpassed 8 million, with major corporations such as IBM, BBC, and Oracle using Slack daily. Slack was able to enhance and polish its existing model with the help of MetaLab, and the Slack team was able to gather crucial input, allowing them to produce a remarkable solution that racked up 15,000 users within two weeks after its original debut. Slack’s story exemplifies how a firm may outsource development yet attract many customers and investors.
CuriosityStream is a video-on-demand streaming service and an international media corporation. CuriosityStream has seen numerous organizations benefit from outsourcing before attempting it themselves.
CuriosityStream, a global independent media organization, has already seen the benefits of outsourcing from other companies before attempting it on its own. CuriosityStream had seen many other organizations take advantage of the various benefits of outsourcing before deciding to try it with their own company. As a result, they decided to give it a shot. CuriosityStream engaged a team of six programmers in 2019 to assist them in developing a video feature that would allow them to boost the number of hours watched. CuriosityStream was able to save money by outsourcing software development.
CuriosityStream’s decision to outsource new employee software development has also helped the company save considerable money. According to CuriosityStream’s CTO, Andre Silva,
“Outsourcing is great value for a business, as hiring remotely makes it easier to scale. The main advice – try to figure out a way to integrate the offshore team with the on-site one. It can be challenging, but the return on investment is worth it.”
StudyTube, a Netherlands-based online education business, relies entirely on nearshore programmers. Even though they began as part-time engineers, the company quickly discovered that this method was not the greatest for developing a robust product and sustaining long-term growth.
As a result, the corporation chose to outsource nearshore personnel with the appropriate engineering talent and talents. The corporation hired Ukrainian developers as a result of this move. Since deciding to outsource to Ukraine, the firm has received three rounds of funding totaling €1,500,000 and is growing.
Hiring developers cope with many business problems that a company faces. Here we have mentioned some factors that companies pursue when outsourcing developers.
- It reduces the overall development and operational costs, as hiring the remote contractors deducts the extra costs.
- Startups tend to save funds and invest them into the products; therefore, they outsource CRO, web, and app development.
- Save employee recruitment costs and time and provide social benefits.
- Outsourcing a subject specialist, rather than looking for different people, is less effort-consuming.
Given the worldwide tech talent scarcity, outsourcing is becoming an increasingly more appealing choice for organizations, as it solves various issues, from lowering software development costs to overcoming the difficulty of obtaining qualified personnel. While outsourcing is a simple answer to many expertise and staffing issues that can be seen by scrum case studies discussed above, it often presents plenty of issues of its own. However, with correct utilization, guidance, and strategy for outsourcing, the benefits significantly outweigh any disadvantages, making it a cornerstone in many firms’ operations. Regardless of your company’s size, business model, or age, the examples above demonstrate that outsourcing is a feasible strategy that can save it.