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How to Hire Software Developers For a Start-up?

It is obvious that the most crucial point for a start-up is to deliver its product to the market as fast as possible. And there are many reasons for that: competitors can appear on the market with a similar product faster or start gaining first customers to get the funding for further development and promotion and so on. But how can a start-up accelerate development time?

Actually, there are several options but the most efficient is to hire an external development team. While transferring this job to the development team, the business can concentrate on core activities like business promotion, marketing, strategic planning, etc. Let’s have a look at how to hire a team of software developers and what are the alternatives.

Challenges Of Hiring Developers For A Startup

The necessity to hire developers for a start-up is inevitable as it does not have its own team at the very start. However, finding and adding software developers to the project isn’t easy and is usually associated with a number of challenges. Let’s have an insight into the issues that startups can face when looking for a development team.

Local Market Talents Shortage

Hiring locally implies many benefits for companies, especially when they onboard the specialists to build an unconventional product. Local specialists are always at hand and it’s easy to get hold of the needed specialists and quickly discuss the development issues on the spot. However, in most cases, it’s a perfectly modeled situation. In reality, the shortage of local specialists equally affects small and big companies, and startups are no exception.

The tendency is observed around the world. For example, the Local reports that the Swedish public sector is already suffering from IT talent lack in the public sector.  As a result, many businesses and startups reject the idea of hiring locally only and handing their project over to software outsourcing companies around the world, instead. Find out how to find professional software developers overseas and how to effectively hire outsourcing specialists for your projects.

Talent Retention

Even if a startup has landed some highly-skilled local software developers for its project, it doesn’t provide any guarantees that it’ll manage to retain valuable specialists.

The main issue that startups face at this point is that they have to compete with large corporations which are also constantly searching for unique talents to hire. In addition to corporations, startups have to consider big and medium businesses. Often, they offer more instant perks than startups while the latter can promise the same or higher benefits only in the future.

This way, apart from hiring unique specialists, startups also have to search for “developer enthusiasts” who are ready to contribute to the project, hoping for the possibility to double or triple their income in the case of the project’s success.

Budget Management

When hiring software developers in-house startups have to consider all the financial expenses associated with their onboarding, e.g. taxes, benefits, social security, annual leaves, relevant software and hardware equipment, and more.

Unfortunately, the resulting sums can be too significant for businesses that often have limited budgets. Many startups find a way to reduce costs while outsourcing their software development projects to an external provider. This way, they can eliminate most of the additional expenses on hardware and infrastructure, taxes, and operational costs as outsourcing companies take care of all that.

Benefits Of Hiring Software Developers For a Startup

Here are just some benefits that startups can reap if turning to hiring developers from a service provider.

  • Cost-effectiveness

By hiring a software development team, startups can significantly cut down their costs. This becomes possible due to many factors, including lower cost of living and lower taxes in the outsourcing countries, no need to pay social benefits, vacation compensations, and saving on expensive equipment and office space.

  • Large Tech talent pool

When startups turn to outsourcing service providers they get access to the pool of software developers across multiple technologies, niches and expert levels. Along with that, software development outsourcing companies have various specialists for diverse IT project needs (UI/UX designers, DevOps, QA specialists, Business Analysts, etc).

  • Flexibility and scalability

Usually, outsourcing providers are super-flexible to work with. They can quickly adjust the number of team members when product requirements are changing fast. Startups can easily scale up or down their development teams to align them with the current project needs.

Hiring Developers For A Startup: Steps

Specify Your Project and Product Needs

Before starting to look for a development team, clearly outline the scope of the project, describe as precisely as possible the requirements, and preferably prepare a technical and business specification, or requirements. Also decide who will be responsible for managing the team, a Project manager on your side or a vendor Project manager, or even an independent Project manager. Who will be responsible for the UI/UX design of the application or is it already in place? If you have a prototype, it will ease the design to development hand-off. If you have an MVP and already tested it on real users then most likely you know what features should be added firsthand and what the rest development plan should look like.

Do not forget about the deadline as it is essential for a startup project.

Here’s a sample of a checklist of what you need to prepare:

  1. Outline the scope of the project;
  2. Prepare the requirements;
  3. Create UI/UX design;
  4. Describe the features and split them by priority;
  5. Outline the timeline and budget;
  6. Decide on the management;
  7. Look for the developers.

Once set with the above mentioned points start looking for the developer or a development team.

Decide on the Cooperation Model

When your project and product requirements are ready, consider under what terms and conditions you want to cooperate with your software development partners. Usually, outsourcing companies provide several cooperation options so that you can choose the one best suited for your business needs.

If you don’t have any software developers and need an entire IT team of skilled software specialists then a software development provider can assign you a fully-equipped team of professionals suitable for your project tasks. This team can include front-end and back-