outsourcing for startups?
Filed in archive Entrepreneurship on February 26, 2004
Fast Company also covers recent developments in outsourcing. What's surprising for me is that outsourcing is presented as a tool to make any company more competitive. Outsourcing can only produce results in certain environments and mostly it does not deploy many cost savings for small scale startups.
Often internal processes are far from fixed and knowledge about the whole company or product matters much. There is often not much to give somebody else in India (beside inbound calls maybe). So I wonder about this statement:
"Two-thirds of the portfolio companies at Mayfield Ventures, another VC firm, already have offshore operations. And Mayfield won't consider funding new companies without an offshore strategy, says partner Yogen Dalal. "All startups need to be as efficient as possible in getting their developments to market with the least amount of money," he says. "If they can do that by utilizing talent overseas, so much the better."
For more info about outsourcing see our new Outsourcing Weblog.
Permalink: outsourcing for startups?
Tags: outsourcing startups entrepreneurship more technology outsourcing+startups venture+capital samwer+br
Vote for outsourcing for startups?:
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Response from:
Dharmesh Shah
(03/21/06 10:04am)
Response from:
TJ
(03/22/06 5:59am)
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Dharmesh,
thanks for this. Outsourcing the core product development is never a good idea in any case. The knowledge and skills should always remain in-house.
Nevertheless starting early with outsourcing focuses your development team and makes them often more focused and more competitive. So my experience is to give away less critical development tasks from the first day.
thanks for this. Outsourcing the core product development is never a good idea in any case. The knowledge and skills should always remain in-house.
Nevertheless starting early with outsourcing focuses your development team and makes them often more focused and more competitive. So my experience is to give away less critical development tasks from the first day.
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Developing a software product as "cheaply as possible" seems a little short-sighted as there are a multitude of other factors that will determine long-term success. I've been searching for examples where starutps that outsourced their core product development and built a widly successful product and achieved their desired results. I haven't found any yet (but have found many of the opposite).