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Outsourcing after the product is finished - what is the best way forward?

I have outsourced the development of my application and it will be finished in 3-4 weeks. When that's over, I will not have any technical team members and need to outsource the ongoing development and maintenance. Should I stick with the original dev team {they've done a good job} or go with the cheapest solution I can find {I'm funding this on my own}?

14 Replies

Steve Owens
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Steve Owens Entrepreneur • Advisor
Finish Line - A Better Way for Small Companies to Develop Products
The most expensive mistake I ever made was hiring a cheap lawyer. Always hire the best people you can find and figure out how to pay them. Steve Owens - Finish Line PDS A Better Way for Small Companies to Develop Products e | Steve.Owens@FinishLinePDS.com p | 603 880 8484 w | www.FinishLinePDS.com 94 River Rd | Hudson, NH | 03051 Click for Product Development White Papers ---- On Thu, 26 Mar 2015 06:54:38 -0400 Philip Welber<[removed to protect privacy]> wrote ---- FD:Discuss New Discussion on Outsourcing after the product is finished. Best way forward? Started by Philip Welber Vice President, Recruiting, Wimbledon Group, Inc.. I have outsourced the development of my application and it will be finished in 3-4 weeks. When that's over, I will not have any technical team members and need to outsource the ongoing development and maintenance. Should I stick with the original dev team {they've done a good job} or go with the cheapest solution I can find {I'm funding this on my own}? FOLLOW DISCUSSION or Reply Directly to this email to participate in the discussion Manage your email notifications
Matias O'Keefe
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Matias O'Keefe Advisor
Founding Director
Hello Phillip,
I normally recommend my clients to keep a close look on expenses until they proove product-market fit.

Do I believe the answer would depend on what stage your startup is in.
If you are already getting users and gave a clear proof that your product is working, I would recommend starting to have a closer grip on development, maybe you can achieve that with a different (more long term) arrangement with your actual vendor.

Hugo Messer
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Hugo Messer Entrepreneur
Co Founder & CEO at ekipa.co; Owner at Bridge
I think it also depends on your satisfaction with the current team. In general, I strongly believe that you need to keep the existing people engaged, since they have the knowledge and built the system. If you transfer that, you always loose speed and money.
If you believe your product will work out and you plan to build it for the longer term, it might make sense to find a long term cost-effective team. I am not sure if a pure focus on 'lowest cost' will help you. Low cost in software development is hard to judge, one team can spend 10-20 times more hours and some charge 10-20 times less than others.
I would be glad to help you spot a strong team and talk you through the considerations
Rob Mitchell
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Rob Mitchell Entrepreneur
Senior Java Software Engineer at Direct Commerce
As a startup or new product owner, you can't pay top dollar for the best people in every need/position so you're going to have to determine what you can and cannot pay for those things that are super-important and not-so-important.

If you're main selling product is this software app and you're out of funds, then you're either going to have to partner with someone to take on the job for no funds in exchange for equity or at the very least a promissory note; or delay any fixes or enhancements until you have funds. Even then, you'll want to determine tradeoff between must-have and nice-to-have bug fixes and enhancements.

Loads of money makes things easier, but where's the challenge in that? ;-)

Good luck!

George Lambert
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George Lambert Advisor
Interim CTO - CTO's for Hire
Before u consider any of that you need to evaluate your operations plans. What are the short term deployment concerns. One this is resolved you can evaluate who can wok in a complementary way make sure that you have a disaster recovery and plan.
Ken Vermeille
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Ken Vermeille Entrepreneur
Founder
Hi Phillip, I can understand that at this stage of your startup you may want to cut costs especially if you believe that there isn't a lot of work to be done. However, In my experience switching teams right before the launch almost always goes awry. You do have a couple of options, your best bet is to find a technical co-founder that you can trust. Someone who can get into your codebase, understand the architecture, and jump in to make improvements and fix bugs. While you're searching for the co-founder you can keep the original development team on a retainer or offer the original team some equity in your company.

Above all steer clear of outsourcing your completed project overseas. As a founder you will feel more comfortable working with someone who you can see in person over a cup of coffee. Finally, you get what you pay for, unfortunately I've run into clients who decided to take the same route that you're considering and eventually they end up spending more (paying the overseas team and paying my team) to complete their project.
Jesse D. Landry
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Jesse D. Landry Entrepreneur
Business Development
At this stage I would stick with the folks that have gotten you here.

A new group could come in a decide there needs to be changes to the code base and such and that could disrupt what you have built.

If you are comfortable with the costs of your current team and can retain them with no to minimal team composition change. I'd ride it out.....

You could revisit your question after launch when you've proven traction. At that point you could be ready to bring a high level tech person in-house to work with the team or bring in a new group to assist - I just feel the timing is wrong to make changes. Too many variables that will ultimately slow you down.
Mathieson Sterling
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Mathieson Sterling Entrepreneur
Senior Software Engineer at Apprenda
I've lead several overseas teams - as well as been hired more than once to clean up a mess from the same.

Keep your original team. There's two reasons to do that. First is that to bring a new software engineer onto a project has a minimum ramp up time, while they get familiar with the code. This is much harder when the original author is not available.

The second is that overseas contractors often do not write code designed to be maintainable or expandable. It's simply not in their business model to do so. But this does mean if you bring in another team they might immediately have to start rewriting the existing codebase to a large degree, costing you money to do so.
Eric Wold
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Eric Wold Entrepreneur
CEO @ RingSeven • Web & Mobile Dev • Startups
Philip,
My 2?: Stay where you are. Keep burn as low as possible while you get to revenue stage.
All,
In future I hope to see more "full stack outsourcing incubator / VC combos" like this: http://www.science-inc.com/hypothesis.html. They are a one-stop shop for what you are doing. They will even invest by doing the dev and product work out of their funds.
What positives or negatives do you see in working with a hybrid Accelerator/VC like Science Inc? What do we even call this type of firm?
(I am NOT affiliated with them in any way)
Jesse D. Landry
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Jesse D. Landry Entrepreneur
Business Development
Eric, My experience is, although a great way to initially get out to market, those firms can only do just that; get the prototype built and don't have the bandwidth to scale a team - They are usually smaller, high quality shops, that will eventually have to pass off to a larger partner.

Another potential issue is their tech capabilities - A few I know only specialize in Ruby. That presents a problem for the future....


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