15 Startups owing success to outsourced development

Starting your own business might be a real challenge. First, you have to implement your idea within the limits of your starting capital. It is not as easy as it may seem. Second, you must ensure competitive quality. No matter how innovative you are, you will have to deal with the rivals in the industry.

So, how do you combine your wishes with your capabilities?

Well, the solution consists in the wise investment into human capital. People are the fuel for the business engine. The more talented ones you hire, the further you will be. I’ll tell you more. You can afford brilliant employees within your financial scope if you turn to outsourcing.


Related: Why outsourcing will help your business?


Believe it or not, many worldwide corporations obtained their power through outsourcing development. Startup outsourcing is tried-and-true and trustworthy.  While you still doubt if it would work for you, there are 15 startups that have accomplished something using success outsourced solutions.


1. Alibaba.com. Also known as “China’s EBay,” this website was once a small Internet company. Its founder Jack Ma had only $20,000 when he began to grow his startup and outsourced website building to some people from the U.S. The outsourced development brought huge revenue to the company in just three years and made it huge.

2. AppSumo. This startup became successful as a first website for distributing web apps. Its founder Noah Kagan built the initial version of the website himself. Next, he hired a freelance developer to build a Paypal button. Hiring the developer cost him only $50. Today, this succesfully outsourced startup is valued at more than $2 million.

3. Basecamp. The company started with only four people working for it. Nevertheless, it has used outsourced development as its core business strategy. It hired many people who completed development from home. The practice aligns the very definition of the outsourced development. Today, it is a technology leader well-known for remote workers.  

4. Fab.com. Its founder Jason Goldberg have spent three weeks on building a website that was going to become great. What he did was outsourcing the initial site development to people outside U.S. That way Goldberg and cofounders kept the costs low and saved time. A few weeks later, Fab received its first $1 million.

5. GitHub. This startup owes its success to a talented outsourced consultant Scott Chacon. In the beginning, its founders hired Scott Chacon as the company outsourced consultant. His task was to write the backend of Gist, which is a sharing feature on GitHub. As a result of the outsourced development, the company successed to attract over 11 million users, and its value reaches $2 billion today.


Related: Is it better to outsource to large corporation or small company?



6. Google. In its earliest days, Google was the company that had only 60 people. As a startup, Google relied on outsourced development as it does today. Now, it is called outsourcing to subcontractors and is used by many big tech companies. This practice has turned Google from a little startup to one of the most powerful tech giants giving a prominent example of the most succesfull outsourcing company.

7. IBM. Information technology services are the largest source of revenue of IBM today. When it was a new venture, IBM invested heavily in outsourcing, hiring and training it professionals. Today, IBM invests over a $1billion a year in education for its employees, much of it is done via distant learning.

8. JPay.com. The company was started by Ryan Shapiro with headquarters in New York. However, he delivered building the technology and infrastructure to the offshore developers. They had to provide quality assurance, engineering, and hardware. Later, owners to sold the successful company to Securus Technology.


9. MySQL. This startup became successful thanks to one person Michael Widenius, its inventor. Meanwhile, he understood the value of developed outsourcing. From its earliest days, MySQL practiced outsourcing staff in different countries to boost operations in each of the locations. Today, MySQL runs on four million servers.

10. Oculus Rift. This startup never outsourced their entire product because its value is grounded in technological innovation. Nevertheless, it used a team of outsourced development to boost the speed of production. Thus, outsourcing consisted in the work that is not a part of the company’s intellectual property.


Related: Outsourcing mobile development for startup


11. Opera. When Opera was just a startup, its founders did not know if it would be successful. To save the costs of the risky venture, half of developing was outsourced to developers in other countries to create and implement its platform. This developed outsourcing resulted in the successful public release of Opera.


12. SeatGeek. Two friends Russel D’Souza and Jack Groetzinger started this ticket-selling startup in 2009. This company befitted from outsourcing special tasks to talented developers in other countries. Outsourcing helped them build their infrastructure quickly and at a low cost.


13. Skype. Its founders Niklas Zennström and Dane Janus Friis wanted to create a program empowering voice-calling. They outsourced their development to European experts who built the platform for making calls via the computer. When Skype was released, it gained more than a million users in few months and became an instant hit.

14. Slack. Its founder Steward Butterfield delegated Slack’s development to a designed agency. This agency designed the logo and the website for the app. When the program was released, it became a success. In two weeks, 15,000 people were using it. Today, its worth is estimated as almost $3 billion.

15. Staff.com. This startup is centered around the remote human capital at its very core. Staff.com utilized outsourcing to grow from a start-up into a globally successful business. Even today the company prospers thanks to the outsourced development provided by the employees from nine different countries.

In fact, the list of successful outsourcing examples can be endless. They all have been unknown startups once. What made some of them worldwide famous is a clever business strategy that is outsourced development. Their example confirms that delivering development to talents from other countries can bring significant benefits from outsourcing. Not only it saves your time, but also it saves your money. For that reason, outsourced development can become one of the brightest decisions for your venture.    

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