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Why you should hire an agency to develop your startup product

When it comes to scaling your startup’s technology team, generally they have two options. Either build an in-house team of programmers, designers or outsource product development to an external agency. But which is really better?

Let’s explore both the options.

Following are the reasons you should hire an experienced agency.

Good Agency brings enormous experience & they are not expensive

Experienced Agency has a lot of different talent under one roof and experience to produce world-class output. It is tough to create your own in-house team with enough variety in skills. Agencies have interviewed a lot of candidates in order to find the talented group of people they work with every day.

If you try to create your own team, it is highly probable that you will end up spending the same amount because either it will take a long time to build something or it won’t be of the same quality or both.

Outsourcing minimises distraction

As a founder, your focus should be on business strategy, operations and finance than on fixing bugs and fighting for feature deadline. It is equally important when the entire business is on digital products, but since you have already hired an agency lot of burden is off the shoulder to focus on other facets of the business.

Outsourcing allows you to focus on sales & marketing

The most important part of any business is getting customers in the door. Customers are the first thing your company should be thinking about. Many times, entrepreneurs who are starting up are very product-focused, which can certainly be a good thing and a way to drive customers.

However, there’s a risk there as well. If you spend all your time managing the product and the development of your product, who will bring the customers? If you have an agency creating the product, you can get enough time for sales & marketing.

Agency bring flexibility

Agency is flexible on rapidly increase or decrease team size whenever it is required. They also bring flexibility in terms of providing short term specific skilled resources when it is required versus hiring a high salaried resource for a short time.

It Increases speed to market

Correct hiring takes time, and it’s an expensive affair as I mentioned earlier. Short on time? Hire a junior designer and you’ll end up paying more as he/she may need more time to build something right. An agency with experts helps build MVP and get your product to market faster. so you can start bringing in revenue sooner.

It reduces risk

If you have investors, they want to protect their money from risk exposure. This is why Y Combinator startups partner with agencies like viget and many more. They trust them to get it right the first time. And investors feel better having the experience of a 13-year-old agency of 66 people behind their small, nascent founding team.

With all good points there is dark side of it, one should do a proper due diligence before hiring the right agency, because not all the agencies are worth your time and money and that’s the topic of my next blog article on what things to take care while hiring an agency.

  • Posted on March 29, 2017

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