Unleashing Potential: How Outsourced Software Development Companies Help Startups Succeed

Software development outsourcing as a revolutionary strategy for startups seeking to leverage technical knowledge and streamline
their operations.
In the dynamic and highly competitive world of startups, finding the right balance between limited resources and ambitious goals can be a significant challenge. Outsourcing software development has emerged as a game-changing strategy for startups seeking to leverage technical expertise and optimize their operations. In this article, we will explore how outsourcing software development companies can help startups unlock their potential and drive success.

Access to Specialized Expertise

Outsourcing software development provides startups with access to a pool of highly skilled professionals who specialize in various technologies and domains. According to a study by Deloitte, 81% of executives turn to third-party vendors to provide, in full or in part, their cybersecurity capabilities. These outsourcing companies have experience working on diverse projects across industries, equipping them with valuable insights and knowledge. By partnering with an outsourcing company, startups can tap into this expertise without the burden of building an in-house team from scratch, thereby accelerating product development and ensuring high-quality results.
In which of the following functional areas does your company currently use external service providers today?

Cost Optimization

Startups often operate on tight budgets, and outsourcing software development presents a cost-effective solution. According to a report by Accelerance, outsourcing helps by realizing a 40% to 70% reduction in development costs. Businesses are better able to control expenses and budget. By engaging an outsourcing company, startups can significantly reduce expenses associated with recruitment, training, infrastructure, and employee benefits. Outsourcing allows for flexible resource allocation, enabling startups to scale their development team up or down based on project requirements. This cost optimization empowers startups to allocate their financial resources strategically and focus on core business activities such as marketing, sales, and customer acquisition.
Reasons for Outsourcing: Cost is Top Priority Among IT Leaders

Faster Time-to-Market

In the fast-paced startup ecosystem, speed is critical. Outsourcing software development enables startups to expedite their time-to-market and gain a competitive advantage. A survey conducted by Statista found that 60% of companies outsourced to speed up development, they follow efficient development methodologies, possess streamlined processes, and have access to cutting-edge tools and technologies. This enables startups to accelerate their product development cycle, meet critical deadlines, and seize market opportunities before their competitors.
Statista : 60% of companies outsourced to speed up development

Scalability and Flexibility

Startups often experience fluctuations in their workload and project requirements. Outsourcing provides the necessary scalability and flexibility to adapt to changing needs. A study by Clutch revealed that 62% of businesses outsource to reducing expenses and bringing industry experience onto the team. Whether it's increasing the development team size, adding new features, or exploring new platforms, outsourcing companies can quickly adjust resources to meet these demands. This agility allows startups to respond to market dynamics swiftly, stay ahead of the curve, and adapt to evolving customer preferences.
Clutch: 62% of small businesses being concerned about a potential recession, the top objectives for small businesses in 2023 are to grow revenue, build their teams, and acquire new customers.
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Focus on Core Competencies

Startups thrive when they can concentrate on their core competencies and strategic initiatives. Outsourcing software development offloads the burden of technical development, maintenance, and support to the outsourcing partner. According to a study by Gartner, 57% of organizations outsource to focus on core competencies. This empowers startups to channel their energy and resources towards activities that directly contribute to their value proposition and market differentiation. By delegating software development to experts, startups can focus on areas such as business strategy, product innovation, and customer engagement.
Gartner: 57% of organizations outsource to focus on core competencies.

Risk Mitigation

Startups face inherent risks, and outsourcing software development can help mitigate some of these challenges. Reputable outsourcing companies follow stringent quality assurance practices, ensuring that the developed software is thoroughly tested, secure, and reliable. Moreover, outsourcing partners often have experience working on similar projects, allowing them to identify and address potential risks and pitfalls early on. A study by ISG Research found that business process outsourcing (BPO) soared 73 percent, to US $873 million, driven by growth in engineering services and facilities management. By leveraging the expertise and experience of outsourcing companies, startups can reduce the risk of project failures and minimize costly mistakes.


Outsourcing software development has emerged as a powerful tool for startups to accelerate their growth, optimize costs, and gain a competitive advantage. Startups can tap into specialized expertise, reduce development costs, expedite time-to-market, scale efficiently, focus on core competencies, and mitigate risks.

At Fayrix we had a number of startup clients and each project had its own specifications, limits and potential for further development. We're confident that this is a very promising niche and just want to share a few success stories of our clients.
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Development of the automated cow monitoring platform SenseHub. The SenseHub system designed for a health checking of animals, cow's reproduction, milking statistics and other more.

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Railway mobile technologies
Fayrix team has implemented a range of mobile services and two mobile applications for iOS and Android OS. The app enables passengers to review long-distance train schedules, select trip parameters and purchase digital tickets directly from their mobile devices.

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Innovative PM system
Dedicated development team formation for developing an innovative project management system (ACTECH) for tracking key points, monitoring execution and automating the work of contractors.

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