There’s a traditional (or I’d rather say “outdated”) paradigm in the startup world: do your job in-house or they might steal your disruptive idea and you’ll end up being nobody. The same pattern applies to the FinTech startups domain – one must build the solution internally to control all technical aspects without letting your technology partner penetrate into your code.
However, the reality is different. In the modern fast-paced world, the practice of “doing your homework” in-house is actually non-proactive for FinTech startups. It doesn’t make economic sense to build most of the technology from scratch, wasting countless hours on reinventing the wheel. In a nutshell, outsourcing your financial software development is less expensive, quicker, and, in most of the cases, more reliable.
Once you’ve become a startuper, you have to become familiar with notions like flexibility and scalability. Outsourcing is the excellent way to have it. There’s no need to hire additional employees if you want to try out a new framework. You can employ on-demand specialists like designers which you usually don’t need as a full-time employee (especially when you’ve just started). This way, startups can profit from the flexibility their partners bring and reach essential milestones faster.
As a matter of fact, professional outsourcing companies often have greater expertise and more skilled employees. Given this, outsourcing providers enable the best practices and, accordingly, accelerate the time to market when compared to developing the product in-house.
A reliable (you do read the reviews, don’t you?) outsourcing company as your technology partner will resort to using top-notch pre-built software components as pre-built APIs, various frameworks and libraries.
Moreover, if your partner specializes in FinTech outsourcing, its developers are no strangers to online stock trading terminology, logic and accounting terms. Thus, FinTech startups have the opportunity to minimize the development period and launch their product earlier than expected. In short, according to Deloitte’s report, startups which resort to outsourcing lower their product’s time to market by 20 percent.
The key takeaway is this: it’s significantly cheaper to outsource than developing the same technology in-house. Just imagine some of the expenses an aspiring startuper will face when managing a tech team:
- Office space;
- Office equipment (computers, printers, etc.);
- Regular salaries;
- Benefits and quarterly bonuses;
- Spendings associated with possible changes in the business process;
Keeping in mind these numbers, it’s no brainer to conclude why it costs a 35% less to get a white label software rather than employing an internal team to develop one. According to Deloitte, 59% of companies regard outsourcing primarily as a money-saver – enough said. Fair enough, sometimes you may not find all the functions you need in an out-of-the-box solution, but most of them exist already, and can be reused or realigned to better fit your needs. All in all, it’s a matter of proper research.
Undoubtedly, the primary bonus provided by the cooperation with an outsourcing technology company is the quality, speed, and flexibility of your product. To make a long story short, you actually pay less to get more. Surely, it works well only if you choose the right technology partner.
Again, what is the principal criteria when going through the variety of available offers?
A reliable partner must:
- have the knowledge to consult on business workflow;
- perform business analysis to suggest the best possible solutions;
- manage the entire project and both teams;
- use modern practices and technology stack;
- provide support;
Always do a proper research. The process of outsourcing may be a confusing thing (after all, nobody’s perfect), but if you’re lucky enough to find the right partner, using the suggestions above, you will reach your goals faster. Ready for some home work? Here are 2 financial software development companies to analyze and compare – Elinext (headquarter Eastern Europe) and Micro Focus (headquarter Berkshire, England). Remember: many successful FinTech startups outsource most of their software development, instead of doing this by themselves.