6 successful companies that outsourced development

Not just a cost-saving strategy, outsourced IT services, particularly software outsourcing, can substantially fuel innovation and growth in entities ranging from early-stage startups to large corporations. In fact, IBM data reveals that only 27% of companies use outsourcing as a cost reduction tool. In contrast, a larger proportion, 36%, leverage the skills of external developers through outsourced IT services to stimulate innovation and improve their business development.

Companies of all sizes can benefit from an outsourced development team, which can bring a fresh perspective and new ideas, exactly when they are needed, without spending all available capital.

6 large companies that outsource

You might be surprised to learn that some of the world's most successful companies, including Alibaba, Slack, and Skype, used outsourcing to get started, or even continue to outsource some of their development today.

Here are six highly successful companies that have used software development outsourcing to grow their businesses.

Clearance #1

The web interface of this favorite corporate communication tool was primarily designed by MetaLab , a design company. MetaLab not only refined the design of the messaging app that is nearly ubiquitous for startup teams, but also redesigned its logo and website.

Following the American multinational technology company's meteoric success, several other companies, including Brit+Co and Coinbase, hired MetaLab to build original branded content.

#2 GitHub

GitHub is now an essential platform for developers to document, share, and edit private code, but an outsourcer built much of its backend. Current GitHub CIO Scott Chacon met GitHub CEO and co-founder Chris Wanstrath at a Ruby on Rails meetup in San Francisco, where the latter noticed Scott's impressive knowledge of Gits.

Although the GitHub team didn't have enough money to hire Scott full-time, they hired him to write Gist, GitHub's sharing feature, which continues to be a core feature for the platform.

#3Skype

Although video conferencing is now common, Skype pioneered video calling in the early 2000s. None of its successes would have been possible without three Estonian developers, Jaan Tallinn, Ahti Heinla, and Priit Kasesalu, who developed the entire backend of the app.

Although the developers were eventually onboarded as partners, their work as an outsourced team allowed the product to become a common tool for companies around the world. Skype was eventually acquired by Microsoft for $8.5 billion.

#4 Sumo App

Serial entrepreneur Noah Kagan founded AppSumo for just $50. The site, which offers daily software deals, started with a simple PayPal button and a credit card form, which Kagan purchased from a developer for a small sum. . Using his previous experience at Facebook and Mint.com, Kagan was able to boost the site's initial growth by using favors from influential entrepreneurs to secure ad placements.

Kagan says having a strong concept allowed him to outsource core development and create a cohesive product from the ground up.

#5 Base Camp

BaseCamp is made by a remote team, for remote teams. The popular project management software, originally an offshoot of web consulting agency 37Signals, was slowly growing after its launch in 2004. To move the app forward, founders Jason Fried, Carlos Segura, and Ernest Kim outsourced development and application refinement for freelance developers.

As it started to gain traction, they went full-time on BaseCamp and now employ 50 people in 32 countries.

#6 Alibaba

Alibaba is now the world's largest online marketplace, but it couldn't have started without the help of developers in the US. According to Alibaba: The Story Behind Jack Ma and the Creation of the World's Largest Online Marketplace, Jack Ma outsourced much of the site's initial development to a company in the United States since talent was difficult to find in China. and Internet restrictions made finding local programmers nearly impossible.

By outsourcing back-end development from Alibaba, Jack Ma was eventually able to compete with established giants like eBay and Amazon in the global market.

Outsourcing with BairesDev

Companies that outsource development know that it is much more than a cost reduction tool. While hiring a freelance developer or agency abroad can broaden a startup's path, some of the most successful companies are also turning to outsourcing to develop their core products and bring new ideas to the table. Companies with established development teams occasionally bring in third-party developers to supplement and develop new projects. Outsourcing is a versatile tool that can boost the bottom line of companies large and small.

What are the main benefits of outsourcing IT services?

Outsourcing IT services offers cost savings, access to global talent and advanced technologies, greater efficiency and flexibility in scaling operations. It allows companies to focus on core activities while external experts take care of IT needs.

How do you choose the right software development outsourcing company?

Selecting the right company involves evaluating their experience, portfolio, client testimonials, and compliance with industry standards. Communication practices, language skills and cultural alignment are also crucial factors to consider.

What is the typical cost structure for outsourcing IT services?

The cost structure typically includes a fixed price model, a time and materials model, or a dedicated team model. It may vary according to the complexity of the services, the level of expertise required and the geographic location of the outsourced company.

How does working with outsourced companies impact the team’s internal dynamics?

Outsourcing can lead to greater focus and productivity in internal teams as routine tasks are offloaded. However, it is essential to maintain clear communication and set expectations to ensure a collaborative environment and avoid any feelings of job insecurity among internal staff.

Can outsourced IT services help scale a business?

Yes, outsourced IT services provide scalability and flexibility, allowing companies to quickly adjust to market demands without the constraints of internal resource limits. It's an efficient way to access specialized skills and technological knowledge as needed.

How does IT outsourcing align with overall business operations and strategies?

IT outsourcing aligns with business strategy, enabling more efficient resource allocation and cost management and focusing on core competencies. Supports strategic objectives such as digital transformation, market expansion and innovation, providing access to advanced technologies and qualified professionals.