Reasons Why Startups Should Work WithSmall Technology Partners

Reasons Why Startups Should Work WithSmall Technology Partners

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Bloomberg’s US Startup Barometer, anindicator of the health of the business environment for private technology companies in the US,was up 30% from a year ago. VC funds, easy availability of credit, and a growing desire among technology executives to embrace entrepreneurship is driving a strong surge in the number and quality of technology startups.

Working with an offshore technology partner to bring their product idea to lifeis a key part of the growth strategy of many startups. But, who would make the ideal partner fora startup like yours?

 

Many startup founders come from larger companies and bring with them the experience of having worked with the top tier technology companies. If that sounds like you then, this post is about why you should not consider working with those large outsourcers. This is about why the ideal partners for startups are the smaller technology partners. Here are 7 reasons why that is the case:

 

  1. They will give you more attention. For these companies, you are not one among hundreds of clients. However small the current footprint of your relationship with them -that business will be important to the smaller company. You will, quite likely, have access to their top management when you need it. All this will obviously translate into greater responsiveness.
  2. You will work directly with the best people there. The work your offshore partner does for you will in all likelihood be driven by the top tech talent there taking a hands-on approach to your project. After all, it’s not like they have a deep pyramid structure with a vast number of less-experienced people to pick from when it comes to staffing your team!
  3. They will be more flexible. They are a kind of startup too so expect the same nimbleness that you yourself exhibit. This flexibility could well extend to the kind of resources you need on your team, the ramp ups and scale backs, the business arrangements, flexible payment options, and so on. You will especially value this flexibility when you have to pivot and change the shape, size, and scope of the work.
  4. They will align their processes to fit yours. The larger companies with their dozens of process certifications will likely force you into working the way they work. This has its advantages if you are still only figuring out the right way to work yourself. But, if you have a fair handle on what works for you, wouldn’t it be easier for your partner to also follow that lead rather than the other way around?
  5. They will have niche skills. The larger companies play the percentages -even in the kind of skills they build and grow. But what if the skills you need are more niche? Smaller technologies companies tend to be built around specific technology competence and the more niche the better. In fact, building up capabilities in hard-to-find and niche skills is a key differentiation strategy for smaller technology companies -as you yourself also probably know!
  6. They will be more invested in you. Given their, more limited, marketing and sales muscle chances are they will believe that their best chance of growth is for their current relationships to grow. They will know that the better you do, the better they will do. They will be willing to go that extra mile to deliver successful outcomes to you. They are more likely to be invested in the business outcomes you achieve rather than the letter of what they have been specifically contracted to do.
  7. Their philosophy matches with yours. Remember, they are also at the same lifecycle stage as you -this is very important. This means these smaller companies will usually be more passionate about the work they do, they will potentially be more innovative and inventive too. They are usually very aware of new technology directions and trends -even as they only just appear on the horizon. This also translates into a willingness to get their hands dirty with these new technologies and to take the initiative to make things happen. Most importantly, making the most of the available resources and doing more with less will be part of their DNA.

 

When a startup turns to an offshore technology partner, it’s not just to outsource a software development project. This is a key part of their strategy and is a critical piece of their growth puzzle. The work the offshore partner must do is usually central to the survival of the startup. Given that, there are at least 7 reasons why startups should choose to partner with smaller companies at this critical juncture!

 

 

 

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