Why more Tech Startups in Silicon Valley are Outsourcing Jobs?

Outsourcing Jobs is nothing new in the tech world. Here you get to know why silicon valley tech startups are outsourcing Jobs. Silicon Valley is a land of hopeful tech startups as well as prosperous established companies like Google, Apple, and Salesforce.

There was a time when local talent was trending that is called “Onshoring”. The software development community was very sure about they can get high quality in the US only that’s too in Silicon valley. On the one hand, companies like Facebook built their core product in-house. Other silicon valley tech startups are looking for high quality but a lower-cost option. So the solution to this is “Outsourcing”.

Silicon Valley Start-Ups Survive With Outsourcing Jobs :

No matter what the location is- getting a startup from the ground is hard work. Obviously, a place like silicon valley (a super competitive world) makes it more difficult. Embracing outsourcing jobs can give you the hights of benefits here. Before we are dive into why silicon valley startups are outsourcing jobs, first let’s know about outsourcing and its benefit.

An introduction to Outsourcing

Outsourcing is a business practice. In this, a company hires another company or an individual to perform tasks or provide services. That is either executed or had previously done by the company’s own employees.
These days finding a skilled software developer is to do already a difficult task. Upon that you need a whole team to manage that. This could be time-consuming as well as expensive. Outsourcing helps you with this.
Software development outsourcing is providing a vast variety of choices. As thousands of companies providing this service around the world. They are managing outsourced software development as well as ISVs.

Here are some benefits of Outsourcing:

• Active Management, You can take the string in your hand. And directly involve with the developer had a conversation about building your product.
• Cost-saving, Varies on the outsourcing location.
• Faster Production, Less competition means more time for your developer to dedicate to your product.
• Top talent, Outsourcing development means you get to choose from a global range of developers.

Why Startups Are Outsourcing Jobs

As we all know silicon valley is the Mecca of technology innovation. It has some of the world’s best talent as well as an active venture capital community. But It also comes with the package of challenges, especially for the startups. The Bay Area features crowded technology fields and labor costs are too high. A strategy that has major advantages for startups is outsourcing. Let shed some light on it:

Help With Minimal Viable Product:-

There are companies in America that say,” They will create your MVP and offer technical support outside of San Francisco,”. They might then take a share of the company, due to the risk. Outsourcing can help a Silicon Valley startup to go from proof of concept to minimum viable product. Even though it doesn’t scale well.

Commitment To Open Source:-

Startups like opensource, Outsource know this world very well. This positions them to help get quality code written fast.

• Open Source market is very mature right now.
• Open source startups are inexpensive and powerful.
• They have professional support around it.
• They scale very well.
• Outsourcers are equipped to deliver.

Support In Management:-

A startup rarely has the core competencies to run every aspect of its business. Place a team that can run all the aspects of a company. Or finding individuals that are multi-talented, is a major barrier for small firms.

That is why it makes sense to outsource some non-core business functions. Whether that be marketing accounting, design, manufacturing or software development.

Crushing Overhead:-

As everything is very expensive in silicon valley. Labor costs are very high and that is not only for top-notch programmers. Startups with limited budgets simply can’t afford that. So outsourcing jobs to lower-cost can help in maintaining the value proposition while improving the balance sheet. It will make the startup more viable for VC funding.

For example:- Smartphone startup Nextbit Systems, which is based in San Francisco. They outsource the software for its phone’s launcher interface. And save a decent amount.

Experience Benefits:-

An outsourcer is going to have more experience than a startup. So this is quite obvious they better know how to adapt to changing conditions.

“The market is changing all the time in Silicon Valley”, every 18 months there is a new buzzword. A few years ago it was Big Data. Now its API and IoT are trending. And soon there will be something else in place of it.

Silicon Valley is very demanding in the matter of tech. An experienced outsourcer will know what to deliver as well as how to deliver.

Remote Development:-

Possibly the best part of outsourcing. Silicon Valley may be ground zero, but that doesn’t mean you have to be there all the time. There are well skilled remote developers who will work for the project even you can hire the whole development team to manage your project.

For Example- Tom Gerhardt and Dan Provost of Studio Neat have outsourced virtually every aspect of their company. Which designs consumer products. They are the only employees If they want Vc funding from Silicon Valley, its a plane ride away from their homes in Austin, Texas.