1. Mindfire Solutions is a 20+ years old, 650+
people software development and testing
services company with a global clientele. We
offer custom web and mobile solutions for
companies across all major industries.

2. For any Startup, challenges are plenty — from developing a
robust business plan with the available capital, followed by
setting up a software development team that has the necessary
expertise, and subsequently marketing it fast and good enough to
beat the competition. But if the entire edifice is heavily dependent
on software, either as a pillar or an enabler, possessing the right
capabilities holds the key to everything else. And if the choice is
made to outsource, enough focus and importance have to be then
given towards making the right decision.
The Grant Thornton International Business Report on
Outsourcing, states that the demand for Outsourcing amongst
mid-sized businesses and Startups remains very strong and is
growing. According to the survey, the key drivers for
Outsourcing are ‘Increased Efficiency ‘and ‘Reduce Cost’ which
allow businesses to focus on their core business strategies.

3. The frantic pace of digitalization and globalization are rapidly
changing the customer’s expectations, giving a fillip to the
Outsourcing industry. Outsourcing has reshaped the way
businesses operate and has emerged as the best bet for business
setups to stay relevant. As per reports, the global IT Outsourcing
industry was valued at $3.18 bn in 2020 and is only expected to
grow significantly in the coming future.
Given that Outsourcing is the new norm, for a Startup, choosing
the right IT Outsourcing partner is of critical important as it has
the potential to make or break a business. In this article we
address some of the key drivers that influence a Startup’s
outsourcing decisions:
Will the software partner select the right technology?
IT technology and expertise play a critical role in gaining the
necessary efficiency and speed in delivering a top-notch product.
It is therefore prudent to do a get first-hand information about the
IT Outsource partner and what they bring to the table.

4. Check with the IT outsourcing partner about the tools and
technologies they intend to use for the project and how are going
to handle the outsourcing needs requirements.
Will I get a fast-enough release?
In a world where speed, quality, flexibility, and cost are more
important than demography, the time required for developing the
product is paramount. In this age of changing business scenarios
to be able to make the cut, the turnaround time has to be really
quick. Needless to say, if the IT outsourcing partner fails to meet
the deadlines, it can lead to major bottlenecks.
Startups need to ensure that their IT Outsourcing partner adheres
to the agreed-upon quality and timelines. One of the ways to
ensure this is by having a well-defined Product Scope and a
comprehensive Service Level Agreement, where each point is well
thought out and each point is discussed threadbare with the IT
Outsourcing partner.

5. What is the risk of IPR infringement?
In pursuit of efficiency, cost-effectiveness, and being competitive,
Startups shouldn’t ignore the risks involved in their Intellectual
Property Rights and take the necessary steps to protect them.
Starts Up’s should clearly define the importance of their IPR and
the supporting legal framework to their IT Outsourcing partner.
The startup can approach the IT Outsourcing partner with some
key questions, like:
- Protecting the confidentiality of information?
A reliable IT Outsourcing partner will always offer to sign a Non-
Disclosure Agreement before brainstorming sessions with the
client. For a Startup, it’s important to take note of the agreement
period, pinpoint the categories of information that are covered
and excluded, and if the partners subject to the agreement are
properly stated and represented.

6. - Data Protection
Determine if the IT Outsourcing partner has the means and
capacity to safeguard the IP from unauthorized use, loss, or theft
and guarantee secure connections. Can they set up two-factor
authentication, a robust password policy and password updates
policy, a well-f VPN tunnel, firewalls, and disc encryption? Can
they safeguard home routers for remote work? How often do they
check for system updates and what antivirus do they use?
- Process of effective IPR transfer?
Startups must enquire about how the IT Outsourcing partner
approaches the collaboration and the ownership of the resulting
product. This will help Startups avoid dealing with a company
that wants to create its own products at its expense.
- How do I manage an outsourced development team?
First and foremost is to find an IT outsourcing partner who is
reliable and trustworthy. One way

7. of doing it, is to check the client reviews of the perspective IT
partner, the client base, and the projects executed. Apart from
that, the infrastructure, back-ups for downtime, safeguards, and
the availability of the team will give a fair idea about the
reliability of the IT partner. Communication between Startup and
the IT Outsourcing teams play a key role when developing a
software product. The differences in time zone, culture, and
language are other factors that need to be considered before
managing IT Outsourcing development teams. The IT outsourcing
partner should be competent enough to understand the
requirements clearly so that there are no delays in the completion
of the project.
How do I accommodate the volatile changes in the market?
In today’s day and age, the most critical component for companies
to survive is to initiate and respond to change in a manner that
creates advantage, minimizes risk, and sustains performance.
Since the environment in Startups is more volatile, the challenge
therefore in balancing advantage, risk, and performance, is more
critical than say in bigger companies.

8. - Respond to Change
It is critical therefore to proactively scan the environment for risks and
opportunities while keeping a tab on whether the IT Outsourcing
partner is doing the same. This singular focus is imperative for
innovation and survival — the right product at the right time.
- Agility
How effectively does the team identify and respond to the change?
Through effective communication, leadership skills, trust, and
teamwork, this mindset can be ingrained to appropriately analyze
problems, risks, and take responsibility to respond to problem-dictated
and market-dictated changes, while maintaining the day-to-day
business activities. This is known as Management of Unplanned
Changes — basically how well the Startup reacts to the crises.
- Flexible Attitude
Is the IT Outsourcing partner and the team capable of handling the
changes? Do they have the creativity and the ingenuity to address the
issues of change that may require digressing from the work cut out? Are
they glued to enhancing the customer service? The more flexible the
team is to adapt and focus on customer needs, the faster it will adapt to
the changing environment positively thereby providing the desired
result for the Startup.

9. Can the software partner ramp the team up and down fast?
During the course of a project, it may happen that the scope either
grows or reduces during the course of product development. In
such a scenario, the IT Outsourcing partner should be able to
ramp up or ramp down and respond to the situation positively. A
reliable IT Outsourcing partner will enable a Startup to think and
act “big” by utilizing the available economies of scale, efficiency,
and expertise that large enterprises enjoy.
To conclude, it should be noted that Outsourcing is not just
passing some tasks to an external team but A Strategic
Collaboration with a firm having deep and specialized
knowledge. As the requirements constantly evolve, the industry
continues to build support with both established and new
solutions. For an Outsourcing partnership to be successful, the
client should be prepared to invest and the IT Outsourcing
partner should be willing to embrace change. In the near future
outsourcing will be a significant factor in providing short-term
resilience and long-term growth for Startups.

10. If you need assistance in software development and testing,
Mindfire Solutions can be your partner of choice. We have gained
significant experience over the years working with a diverse
global clientele. With a team of 650+ highly skilled and certified
software professionals, we have developed many custom
solutions and software products for them over the years.
Click here to know more about us and our portfolio of services
across industries.

11. Content Source: Medium
Contented by: Mindfire Solutions