It’s the age of startups. You have come up with a fresh idea to solve a specific problem and want to develop an app/digital product as a solution to the issue. But what if you don’t have any technical background? As a person with no prior development or coding experience, you may lack some experience that is crucial to launch a successful product: for instance, how to pick up the right tech stack to build a scalable Minimum Viable Product (MVP) that meets your budget & roadmap for its development. People assume that theirs is the next billion-dollar idea and all they need is a technical partner to get the project off the ground.
The next thing you do is Google- ‘How can I find a technical co-founder?’
But do you think it’s that easy?
One of the major challenges that a startup can face in the beginning is to decide who will be responsible for handling the application development. While there are many networking platforms and websites that made it easy to connect with skilled technical people, it’s important to know that "finding" is one thing, but convincing that person to partner with you is another. Why would any seasoned, skilled developer give up a steady job, one that pays hefty remuneration, in a well-known organization and join a startup?
Your odds of getting a technical co-founder/ CTO on board are very low if the only thing you can offer is an idea. The best that you can offer is split a lot of equity and lure the person with the promise of wealth in the future. But none of the finance experts would recommend giving up on substantial equity stake and that too at such an early stage. You will get further diluted with each round of funding and may eventually lose control of your baby startup! However, it doesn’t mean that you should abandon your product development idea if there’s no technical founder or CTO in your team.
Outsourced CTO- To help your Startup Grow
A Chief Technology Officer (CTO) is a position crucial for any modern startup/company related to IT and software services. He is responsible for maintaining control over the whole workflow, understanding needs, and technologies of the moment, oversight, planning, and security. Though this seems like the work of a full-time in-house employee, now you can engage a software development company as your CTO (CTO-as-a-service). With CTO Outsourcing services, you can find a software development company from around the world, with any kind of experience relevant for your project and at any budget.
People have a mixed opinion for Outsourced CTO Services. While some agree on this, some are totally against the idea. Few argue that the biggest issue with outsourcing a CTO is commitment and loyalty to the company. However, with the right CTO Company, this can be solved.
We believe that CTO Outsourcing is quite beneficial from the idea stage to the seed funding stage of the startup and even for small businesses. A Software development company working as Outsourced CTO (“Outsourced CTO”) is a perfect solution that will cover all your needs before you turn into a mid-sized enterprise and require a Full-time in-house CTO for your core team. Most start-ups do not need an experienced full-time CTO. Rather, someone who can manage the software developers, the software development life cycle, and partner with the management team to establish short and long term technology strategies. This is exactly what Outsourced CTOs provide. They will look after the technology while you look after the business. You can focus on Fundraising, PR, Customer Acquisition and other activities that are crucial for Early-Stage Startups.
Outsourced CTO will effectively cater you with all your requirements providing all the detailed insights for the market, opportunities and future challenges. Also, they will help you deliver the products that will meet or exceed your initial requirements. Below are few other benefits of having an Outsourced CTO
1. MVP Development by Skilled Team of Developers
Many software development companies that provide CTO–as-a-service have helped startups develop solutions for them to kick off. By outsourcing, you will get a skilled team of developers who have years of expertise in building many successful products. With such experience, the Outsourced CTO will start working towards MVP development right away. They already have a team of skilled developers in place for product development resulting in faster release and shorten time to market. They will pick up tools for the Tech Stack that match your Product requirements and funding in such a way that you’ll get a Scalable MVP ready for the market and not just a dummy-Proof of Concept. They will also help set up the SDLC (Software Development Life Cycle).
2. Increased Fund Raising Capabilities
With an MVP in place, you can pitch to Investors. The Outsourced CTO companies have a solid influence on the opportunities for obtaining future investors and seed funding since investors generally look for clear evidence of massive technical role with your startup. Investors will be attracted by the credibility and expertise of Outsourced CTO. A ready-to-use product, along with a team of reliable developers will help you get funding for marketing and further expansion.
3. Design Changes and Optimization Based on Customer Feedback
4. Build In-House Developer Team
Apart from the above, Outsourced CTO can also help in building a passionate team of in-house developers. They already have contacts in the software industry and experience of hiring developers. They can help in conducting interviews with potential candidates, making code reviews, onboarding new employees, performing Scrum Mastering etc.
How to find Outsourced CTO
When you plan for an effective startup, it will be perfect if you hire a dependable and well-experienced software development company as a CTO, that is equipped with excellent development capabilities, extensive software development tools and methodologies used, up-to-date web applications and other platforms since you still not have a history of facing different challenges and risks in the ever-changing business world.
CTO-as-a-service concept has been increasing in popularity in the past few years. Selecting the right outsourcing partner is critical to project success. All the tips and suggestions from our blog on ‘How to Find the Right IT Outsourcing Vendor for Your Project’ will be useful in this case as well. Additional points to be considered include -
1. Select companies that particularly focus on startups and small businesses. If they also specialize in CTO Outsourcing, then it’s a plus point. An outsourcing company which caters to medium and large enterprise clients will not give you any special consideration. You will be just another small client to them. And so you may feel a lack of enthusiasm and passion from the development team. You want to find someone who would be committed to your project fully.
2. Look for companies with real experience in delivering successful scalable products on their own. Ask about projects they have undertaken, whether they have worked on a similar project for any other startup and how effective and useful their work has been for that startup. You can also contact that startup as a reference.
You don’t have to worry about the confidentiality of the project as all these companies would agree on executing an NDA. Contact them and conduct your due diligence before finalizing on any one of them. Make sure you look at their experience, past projects and qualifications of team that will be handling your work. If you are unsure whether the company has appropriate qualities and experience to undertake your project, ask them for a pilot project. Nothing can be more substantive than the ability to deliver actual results. A company which is ready to undertake a pilot shows that they are serious about quality, have confidence in their ability to deliver and are willing to maintain a long term relationship.
As an early-stage Startup, you probably feel the lack of a strong technical leader in your team. After all, a CTO role is more about coming up with development ideas, supervising and structuring software teams rather than writing code. CTO Outsourcing is a solution to cover for your needs and can help you build the backbone of your company from the tech perspective and head the development in the right direction. It will be easier for you to track the right path for your company success and to face different challenges and risks effortlessly and effectively.
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