7 IT outsourcing case studies every startup can learn from
In today’s competitive labor market, finding and retaining top talent is a crucial challenge for companies looking to meet their strategic goals. To build their future workforce, more and more IT firms are thinking beyond traditional hiring approaches and exploring expanded talent sourcing ecosystems that incorporate external service providers.
Inspired by the numerous successful outsourcing examples of startups and industry leaders, businesses are recognizing the benefits of remote teams. For one thing, hiring offshore developers allows them to access a global talent pool beyond their immediate locale and enhance long-term workforce planning. Outsourcing also solves a number of issues from cutting software development costs to finding niche technical skills.
In this blog, we will take a deeper look at seven compelling case studies of innovative startups that have embraced offshore teams. The examples provide insightful models for companies looking to unlock greater potential through effective outsourcing.
Outsourcing – a key to harnessing expertise across business functions
Considering the global tech talent shortage, outsourcing is becoming a desirable option for businesses looking to gain access to new capabilities and specialized skills. As many companies are facing the challenge of technology changes outpacing feasible adoption timelines, they are leveraging external partners to quickly bridge skill gaps and stay competitive and responsive in a climate of fast-paced innovation.
Deloitte Global Outsourcing Survey shows that 76% of companies rely on third-party providers for delivering their IT services. The study highlights that while outsourcing was once seen primarily as a means to eliminate routine tasks, allowing internal technology teams to focus on core competencies and innovation, the attitude towards this business practice has changed considerably over the past two decades. It is now valued for providing access to specialized capabilities across a wide range of IT functions.
While IT is leading the charge in adopting third-party service delivery, outsourcing now encompasses many business activities. Numerous departments beyond tech can benefit from outsourcing including HR, finance, customer support, marketing, legal, and more.
Outsourcing examples of companies built by remote teams
With the rise of global connectivity, a growing number of companies worldwide are building distributed offshore teams to develop software and services. This trend allows enterprises to tap into the global talent pool and expand their reach.
By examining case studies of forward-thinking startups that use remote teams, we can see how they leverage these distributed teams to grow their business, outpace competitors, and access global markets. Here are ten successful outsourcing examples that illustrate these benefits:
Pricena
This move proved to be a wise one. Within just six months, Pricena’s new Android app amassed over 50K downloads and a 4.3-star rating on Google Play. Given the tremendous success of the mobile apps in a short period, it was no surprise when Pricena won the Online Startup of the Year award for 2015.
Riding this momentum, Pricena decided to further improve the customer experience by updating the web version of their platform. They hired a full-stack engineer to lead the web development efforts. The goal was to provide seamless integration between the mobile apps and the web platform.
The series of technology investments allowed Pricena to make major strides forward. Today, the company provides a unified user experience across all major platforms and devices. Omnichannel availability, well-designed features, and pricing comparison capabilities have become a key competitive advantage for the company, allowing it to take the lead in the MENA market.
CuriosityStream
In 2019, Curiositystream hired a team of six programmers, who helped them develop the video feature for the web version of the platform and background playback capability for mobile applications. Introducing new functionality led to a significant increase in the number of hours watched.
Andre Silva, CTO at Curiositystream, commented on the company’s outsourcing strategy: “Outsourcing is of 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 definitely worth it.”
StudyTube
Seeking to access dedicated, highly-skilled tech professionals, Studytube opted to build an outsourced development team in Ukraine. This move aligned with the company’s priorities for expanding platform capabilities and accelerating innovation. Since switching to nearshore engineering, the startup has been able to build momentum and scale more efficiently. This strategic decision has already enabled Studytube to secure three rounds of investment totaling €1.5 million.
Slack
By collaborating with MetaLab, the Slack team received valuable feedback that helped to evolve the minimal viable product into a user-friendly tool ready for widespread adoption. Within two weeks following its launch, the platform gained a remarkable 15K users.
Today, the service boasts an impressive 20 million active users. It has been integrated into the daily business activities of high-profile organizations including IBM, BBC, and Oracle.
WidgetBrain
Check out Widgetbrain’s outsourcing success story:
Oktopost
Vive
Rogier Roukens, the CTO of Vive, stated that he was impressed not only by Ukrainian developers’ level of education, experience, and English but also by their investment in the project’s success. “We have the same goals, which creates a special team feeling and I think our Ukrainian developers are a really important part of that.”
Grow your business with Grid Dynamics
Given the proven benefits of outsourcing like cost savings, access to specialized skills, and flexibility to scale resources up or down, and the shifting mindset toward embracing blended workforces, its adoption levels will continue to rise. As companies navigate the ever-evolving landscape of global innovation, this cooperation model provides the adaptability and capacity that is essential for driving business growth over the long term.
If you consider leveraging the benefits of IT outsourcing, Grid Dynamics is here to help. We can help you build a remote team perfectly suited to your unique business needs and technology requirements. With our expertise in offshore product development, we can assemble an engineering team with the precise skills and experience necessary to successfully deliver your project.
Our process is pretty straightforward:
- Provide us with your software development needs and desired team size. Whether you need one developer or a full team, we are here to assist.
- Interview the candidates from a pre-screened pool of engineers that best suits your project specifications.
- Once assembled, your team works under your command. We help you establish effective cooperation and implement robust retention initiatives to minimize turnover and maintain the satisfaction of your remote employees.
- Stay focused on driving your development process forward while we handle administrative tasks like taxes, payroll, office management, HR, and more.
If you are ready to explore the opportunities offered by our model, get in touch with us!
