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IT Outsourcing for Startups: Equipping Businesses for Growth

IT Outsourcing for Startups in South Africa

Why IT Outsourcing for Startups is Essential

Constant adaptability and a willingness to experiment are necessities in the ever-evolving world of startups; these must be pursued alongside the inevitable challenges of leading a young company. In recent years, outsourcing has emerged as a popular strategy.  All types and sizes of new businesses have been affected by this revolutionary tide. According to a 2019 poll by Clutch, 37% of small businesses were already outsourcing at least one important business function, with another 52% planning to do so in the coming year.

The motivation for this approach is the potential advantages it may provide, such as lower costs, easier access to specialised knowledge, greater adaptability, and a shorter time to market. For young businesses, IT outsourcing services can be a great way to save money and get a head start. For young businesses working with little funds, this kind of efficiency is a lifesaver.  By cutting expenses, they’ll have more money to put towards growth and achieving strategic goals. This article will delve into the importance of IT outsourcing for startups and how it could impact your business growth.


Some Considerations Before Contracting Out Your IT

Although the majority of entrepreneurs are technical, you might be non-technical. If you don’t know or want to review your IT requirements, you must be aware of the following information before outsourcing Software Development.


Software Development Life Cycle 

Your first stop is to establish the Software Development Life Cycle (SDLC), which serves as a methodical approach to crafting top-notch, cost-effective software within the shortest timeframe possible. As the founder, it’s imperative for you to familiarise yourself with the Software Development Life Cycle (SDLC) to ensure that your outsourcing partner, adheres to each step meticulously.

The primary objective of SDLC is to deliver superior software that not only meets but surpasses user requirements. Your involvement kicks off during requirements gathering and analysis, where a comprehensive understanding of the software’s needs and objectives is obtained. Subsequently, ASG’s team will formulate a blueprint of the software and initiate the coding process.

Following that, your role includes verifying that the software aligns with specifications through rigorous testing and addressing any identified bugs. Ultimately, the software will be ready for use, underscoring the importance of your ongoing support and timely updates.

When developing software, the SDLC is the big picture, whereas Software Development Methodologies (SDMs) offer a more methodical approach. Knowing the different approaches taken in software development is also crucial.



Software development techniques provide a framework for organising the development process in order to ensure its successful completion. Methodologies for creating software range from Waterfall to Agile”(Scrum, Kanban), Lean, DevOps, Extreme Programming, Spiral, and Feature-Driven Development, to name just a few.

It is crucial for you to pay attention to whether or not your development partner states the technique they will be utilising. Because the software will live on long after the partnership ends, and because you and your team will need a solid grasp of the technique for scaling purposes, it’s important to document and thoroughly understand it.


Goals and Scope of the Project

Successful project delivery is more likely if the chosen methodology is well-suited to the project’s intended scope and objectives. Before hiring a software development firm, it’s important for a startup’s founder to have a firm grasp on the project’s parameters and objectives.

Making good decisions and making sure the outsourcing development team understands your vision for the project are both facilitated by having a well-defined Project Scope and Goals. It will also help you avoid scope creep, which can cause changes to the project, delays, and higher expenses down the line when outsourcing.  When defining what the programme should be able to perform, it is important to ensure that it meets both the project’s scope and goals as well as the technological requirements. That’s why having an accurate picture of the technical specifications is essential.


Technical Specifications

To make sure the outsourced development team is on the same page as you in terms of the project’s technical components such as technology stack, security needs, performance expectations, and restrictions, it helps to have a clear vision. Identifying the project’s needs and objectives is the first step. The next step is to assess the present technological environment and the solutions at your disposal. When deciding on a technological stack for a project, it’s crucial to get input from the development team and other stakeholders.

Constraints, restrictions, and expected performance should all be spelt clearly. If you want your project to be a success, you need to make sure that the technical requirements are properly documented.

The best-outsourced engagement option for ensuring that a software development project is finished on time and within budget is determined by the technical needs of the project. You should learn about the various software development outsourcing engagement models to increase the likelihood of a successful project.

You can choose from a variety of engagement models when outsourcing software development, such as Fixed Price, Time & Materials, Dedicated Team, Outcome-Based Models, Offshore Development Centre (ODC), etc. There are benefits and drawbacks to every possible model; picking the one that best suits your needs and those of your project is essential. The project’s scope, budget, and deliverables can all be better defined with an understanding of the engagement model.

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