Successful Companies That Outsourced Some of Their Development
Although cutting costs is one reason for outsourcing software development, many companies also recognize that these providers can be used to boost innovation within their own business.
Outsourced teams obviously come with a certain skill set that an organization needs but they also add new ideas and a fresh perspective to help innovation. Some of the world’s most successful and well-known companies outsourced during their start up-phase and continue to outsource today. Here are 6 popular and successful organizations who used software outsourcing as a way to grow their business without breaking their budgets:
Slack is a company communication tool that was designed by MetaLab on an outsourcing basis. MetaLab also redesigned Slack’s logo and website and because of Slack’s success MetaLab picked up contracts from other companies.
GitHub is used by developers and is a place to share, document and edit code. The back end of GitHub was built mostly by an outsourced developer. Scott Chacon, current GitHub CIO, was employed by the co-founder Chris Wanstrath to write Gist. This is the sharing feature of GitHub and remains a key part of the business today.
Skype was the pioneer that launched video conferencing into the big time. All of the success comes as a result of the developers who built the back end. At the beginning these three developers worked as an outsourced team and eventually became partners. Their product has since become a widely used business tool and eventually Microsoft bought Skype for US$8.5billion.
4. App Sumo
Noah Kagan spent just US$50 when he founded AppSumo which provides its customers with daily software deals. It started with just a credit card form and a PayPal button which was produced by a developer. Having had experience at both Facebook and Mint.com, Kagan used his connections to boost the site with ads. Using a developer meant that there was a cohesion right from the start backed up with a great concept.
The founders of BaseCamp outsourced the development of the app to freelancers after it got off to a slow start. These developers later joined the team at BaseCamp as the app took off. The company is ranges across 32 countries and employs 50 people having developed into one of the most popular project management software tools.
Alibaba became the world’s biggest online marketplace because Jack Ma, the founder, outsourced the early development. Unable to find the necessary talent in China, Ma looked to the USA and outsourced the back-end development. By doing so he has competed successfully with other giants like Amazon and eBay to take top position on the global marketplace.
Although many of these companies outsourced to get things started at a lower cost, many continue to use outsourcing to stay ahead of the game. Even those companies with established in-house teams benefit from bringing outsourced developers on board from time to time. It is a valuable resource that can help large and small companies stay competitive.
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