Advanced technology is something that fintech startups really need. A properly developed product enables constant growth and scaling of the business. A few years ago, a popular trend among fintech startups was launched by an in-house tech team that was responsible for this process. Nowadays, this situation has changed.
The change is dictated by the development of outsourcing. This form of delegating tasks to companies specialized in a specific area has gained popularity not only in the IT industry. One can confidently assume that this is a trend to be developed in the near future. However, a question rises, why is this phenomenon so popular and effective? To give an answer, let’s take a closer look at fintech startups.
Fintech startups require advanced technologies, without which their growth would be impossible
Nowadays, probably every startup (regardless of the industry) has a large part of its activity based on advanced technology. When starting a business activity with proper financing, startup’s development usually goes in a fast and dynamic way. Due to this fact, it may seem quite problematic to organize an in-house team in such a short time. This is a huge challenge, especially because there are no specialists on the market.
In such conditions it should come as no surprise that building an in-house team seems more than complicated. And this is where the opportunity for outsourcing arises: you just need to find a reliable partner and you can start working without delay.
Outsourcing usually is much cheaper
What about costs? If a startup wants to organize an in-house tech team, human resources should not be its only concern. The need for an office space, equipment and other features multiplie the costs. Apparently, low costs begin to soar. Moreover, investment in an in-house team, development of the employees or any appropriate benefits are an obligatory. Normally, outsourcing doesn’t face these problems. It is enough to contact a selected software house, set the details of the project and receive its evaluation. In this way, you can verify outsourcing profitability. It is also worth emphasizing the fact that the sum of costs is transparent and easy to estimate from the very beginning.
Outsourcing as a guarantee of quality
Considering the advantages of outsourcing, it is difficult not to mention this exact feature. Popular software houses around the world are made up of experienced developers, who have had an opportunity to work in many international projects. It is a guarantee of both relevant knowledge and skills, and, at the same time, an access to current market trends. Cooperation with specialists can guarantee the highest standards of created products.
Using outsourcing, fintech startups save up to 35% of cost
This is the result of a report published by Deloitte. In addition, we can also see that the costs of building an in-house team usually outweigh the amount of investment related to the cooperation with a specialized partner. Interestingly, half of fintech startups choose outsourcing, taking this for a chance to reduce costs. The Deloitte report is the best proof that choosing outsourcing is a right decision.
2. Reducing the time of product creation
3. High quality
5. Support of experienced developers
To cut it short, these features present the most important advantages of outsourcing in relation to an in-house team. They can be particularly visible in the case of fintech startups. The specifics of this industry usually requires advanced technologies and dynamically developed products and all of this is ensured by outsourcing.