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Startups: A tech startup fully outsourced. What problems would be in this situation?
TM
TM
Tamer Maher, CTO / COO- M&A Business Consultant MBA & PMP answered:

Bad Idea..

Sorry to say that. I've consulted startups for years.

You don't outsource a startup project. When your company grows, you may outsource one of the operations , if it is beyond your area of expertise, and then assessing outsourcing VS starting a new subsidiary or department to solve the problems you are facing will still be another option.

For startups , it is always recommended to hire professionals to help you manage what is going on.

For example , if you are making a web app or a mobile app and you are not a developer, then you should hire a project manager or a CTO , to help you hire a tech team , manage them and be under your control to turn your ideas to reality.

And think about the money you will spend on the outsourcing and spend it on your internal team.

This is important for lots of stuff:-
. You will learn a lot. Which is priceless.
. If the company fails, what you learn will help you move forwards to your next startup .
. As a startup, whatever you have in mind will change a lot on the go , based on updates in business, funding , competitors , or if things boom and you want to have funding from a venture capital or investor or even be acquired. If you outsource things, you loose control on what you have about your company insiders, especially on technology stuff, and also you don;t have the needed flexibility to do all the changes you want on that short notice if compared to the case that you have your internal team.

You may hire CORE team for important stuff, and keep hiring freelancers here and there for short tasks that you don't need frequently . And these people will still be willing to join you later on a full time contract or a return basis.

My answers are high level , but will give you an overview on where to go. If you need more details , we can have a discussion and I can help you from A to Z on how to move forwards on your work, what exactly to do internally and what to outsource of even buy .

Good Luck !

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