Why to Outsource MVP Software Development in 2025
Starting small is a popular approach in entrepreneurship. With a minimum viable product, you focus on the must-haves, build gradually, and get it out on the market faster. If you successfully address your target audience's primary pain points and demonstrate value from the outset, you'll find your first customers, collect data, and base further decisions on feedback. In turn, this can possibly help attract outside investment (since you'll have a functioning product with proven traction to demonstrate).
But how do you plan and build an MVP most optimally? Thorough planning and excellent execution should be part of the equation. Transforming innovative ideas into market-ready products implies technical know-how, significant resources, and time, which may all often be in short supply.
If you don't have the due expertise, the time to assemble an in-house team, or can't figure it out on your own, outsourcing MVP development can be a great option. A team of pros can help you save resources while creating a solid, user-friendly solution that resonates with your customers. What else can you save and gain by hiring an MVP development team? Let's find out.
Who Can Build Your MVP?
The minimum viable product project timeline and costs typically depend on the project's complexity, deadlines, team size, and hiring path. The three most common approaches are finding individual freelancers, doing it in-house or outsourcing. Below are some pros and cons associated with each option.
In-House
Hiring on-site employees is worth it when your company or startup is self-sufficient. Nonetheless, this can be quite time-consuming and labor-intensive. For instance, you'll have to spend immense effort to hire MVP designers, developers, Quality Assurance engineers, and other roles separately. Can you imagine how long the recruitment process with screening and interviews alone could take? Not to mention onboarding, purchasing hardware, software, and work area necessities for each in-house employee.
And even that doesn't guarantee that the people will get on well and "click", possibly delaying MVP launch. Additionally, you'll need to manage aspects like sick leave, time off, project coordination, and management all on your own.
Freelance
Exploring non-in-house options, some consider freelance MVP creation, that is, hiring individual contractors. Platforms like Upwork or Fiverr have dozens of specialists to choose from, and such work can come cheap. The flip side? Freelancers can be unreliable and may leave the project unexpectedly. You might find yourself spending excessive time tracking progress or face disrupted timelines, and the quality may be unpredictable as well.
Outsourcing
If you prefer to avoid the hassle of managing freelancers or the time and costs associated with hiring in-house developers, teaming up with a vendor can be a cost-effective choice. Quicker access to an experienced team, shared project oversight, and payments broken down by sprints are a few of the things to count on. We'll explore all of this in more detail next.
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Why Is MVP Outsourcing a Smart Business Move?
Who can benefit from the latter hiring path instead of assembling your own team or turning to freelancers? Actually, various-sized companies can, from early-stage startups without their own developers to large-scale businesses seeking augmentation or help.
Getting the chance to hire a well-versed, experienced team quickly is tempting to many businesses. In fact, recent statistics show that the IT industry is rapidly shifting toward external suppliers, with over 64% of such projects dealing with application development. So, it's no surprise that the global IT outsourcing market revenue is expected to reach over 777 billion USD by 2028.
Let's go over the main reasons why outsourcing MVP software development can be the right choice business-wise.
Freeing Up Internal Resources
The same resource suggests that 49% of business owners think that outsourcing allows them to concentrate on core business activities. Whether the MVP is a side project or one a startup doesn't have a tech team, passing development work to a third party gives the core team the chance to work on other business-related things, be it the marketing strategy, finding investors, acquiring early adopters, strategizing, or anything else that matters, boosting overall productivity.
A Way to Save Money
The aforementioned findings also state that 45% of IT outsourcing initiatives are aimed at reducing costs. The thing is that business resources aren't endless. At a time when the majority of companies break down their expenses, running a business on a budget is integral for staying afloat. Even more so, startups have seen a visible decline in investment since 2022, meaning that getting startup funding is a lot tougher than before.
Either way, smart resource allocation is the only option. And hiring external resources typically proves more cost-effective than in-house hiring, making it leverage for cutting expenses.
Calculating the MVP project budget realistically can be hard too, especially if it's your first time. Too many companies faced awful financial drain consequences halfway through execution when they found out that their initial estimations were way off. It is best to put in the time to outline the milestones before development starts, counting in developer rates along with the monthly usage expenses on things like third-party services, infrastructure, and so on. Lots of blind spots can be cleared up after consulting with an outsourcing partner you'll work with.
Getting a Technical Consultation
There are plenty of decisions that you have to make prior to MVP software development to ensure that project execution goes uninterrupted without delays, do-overs, and budget overruns. Some of the toughest calls are technology-related or regard features. System requirements, architecture, frameworks, databases, external services, security, and so on must all be decided on during the discovery phase. But what if you lack such knowledge or are unsure which set is optimal?
Relying on an experienced team that built multiple minimum viable products can take the load off your shoulders, especially if you're a non-tech founder or don't have your own specialists to seek advice from. In this case, seasoned external specialists can advise which non-essential features to leave for later, the tech stack to use, and how to cut corners. They can give tips for the product to turn out better even in its earliest version and provide insights on ways to omit costly roadblocks. Ultimately, risk management becomes better.
It's a way to get fresh perspectives, as well. For instance, they can suggest what to create using custom development and recommend which third-party applications can be a better fit for the non-integral parts of the solution. In turn, this may leave you with cut costs and a streamlined release.
Filling Skillset Gaps
On a similar note, data reveals that outsourcing MVP development enables 46% of businesses to access skill sets that are not available internally. Say, you want to include AI functionality to your MVP scope, but what should you do if no one on your team has previously worked with such integrations?
In this event, hiring a team that knows generative AI development like the back of their hands can lead to much faster and higher-quality results than making your in-house team struggle to learn the ropes. After all, they might not even have the time to get distracted by external projects, which can harm their main areas of responsibility.
Faster Delivery
Quicker and smoother release is another major factor in opting for traditional outsourcing. When done right, all "rules of the game" are outlined and signed before development is initiated. This means that the tech partner will follow a clear MVP roadmap without straying off course, accelerating the development cycle, and leading to faster time-to-market.
Most outsourced MVP teams are dedicated teams. This means that the people assigned to the project work on it as if they were part of their partner's company. Since the team most likely worked on similar projects together, they have clear processes and a well-structured and organized approach, letting them deliver the MVP within agreed timeframes. On average, it takes 3 or 4 months based on feature complexity, with results shown every two weeks or after milestone completion.
Simple Scale-Up or Down
Many organizations also view the need for outsourcing minimum viable product development because of the possibility of cutting down or adding on more specialists from the partner's talent pool. Such an approach offers the needed flexibility in terms of team composition. So if an additional UX/UI designer, project manager, developer, testing engineer, or other role is needed to speed up MVP release, augment an existing team, or scale operations, this can be taken care of quickly and effortlessly.
A Part of the Workforce
A partnership with a decent provider doesn't have to be something short-term. Many such projects can be distilled into a collaboration that goes a long way. Employing organizations think of their outsourced teams as a part of their workforce and can continue working together after MVP release for years, bringing additional features to life and scaling the solution.
How to Find an MVP Software Development Partner [8 Tips]
Before you start Googling "MVP software development agencies near me", here's a collection of recommendations on how to select a technical partner to help you with minimum viable product creation.
Where to Find Them
Reach out to someone you trust for agency suggestions. If you're part of a startup community or are communicating with other entrepreneurs or founders, asking them for advice can be a good start. You can also look on LinkedIn, perform a Google search, and explore platforms such as GoodFirms to get a few options.
Company Location
Domestic MVP outsourcing can be quite expensive. To compare, choosing to outsource to Eastern European countries, such as Poland, can save you about 50%, while outsourcing to Asian countries like India can reduce costs by approximately 70% if compared to hiring similar specialists in the USA or UK. This is why many teams that want to make MVP solutions for startups explore overseas agencies for their software needs.
Typically, managing developers in Eastern Europe tends to be more efficient due to closer time zones, as well as linguistic and cultural similarities. This makes the daily operations as manageable as working with a local company.
Company Size
Finding an ideal MVP development team size is a key best practice for successful partnerships. Collaborating with a small team of 20 or fewer members could limit your options if you decide to scale your team (for instance, to release the MVP faster or add in an extra technology that the agency might not have a specialist for). They won't be flexible enough.
On the other hand, engaging with big outsourcing companies that boast hundreds of developers often means higher rates and costs, as well as less personalized attention. Are you sure their larger clients won't be their number one priority over your MVP project?
A team size of around 50 to 80 members might be an ideal compromise. Ideally, you need to select an agency with the right scale to handle potential challenges and at the same time one that demonstrates genuine interest in your project.
Certification and Tech Stack
Experience and years on the market can also be key factors when selecting a partner. A stronger track record may help avoid costly MVP mistakes at your expense. Verifying their credibility by checking relevant certifications.
Be cautious of agencies that claim to work with an overly broad tech stack, this can indicate a lack of specialization. Ideally, you want a partner with focused expertise in specific technologies, which can mean faster and fail-safe delivery without low-quality code "made from mud and straw".
Case Studies and Reviews
Investigate whether the company has previously delivered MVP solutions for startups by looking through their case studies. While going through the portfolio, pay attention to the challenges they encountered, how they resolved them, and what the end result was.
Additionally, look for client reviews and testimonials beyond their website. What do earlier clients say on Clutch or GoodFirms? You can even reach out to them via LinkedIn or ask for referrals.
Experience Building Similar Projects
You shouldn't necessarily look into examples of projects identical to yours. That might be impossible! What matters more at this point is finding some common ground in terms of the type of user or customer they catered to. Don't stress too much about specific industry experience, yet focus on finding a match in the end-user demographics.
Own Products
Did the MVP development company create and successfully launch its own products? This might as well be a positive sign, as they might better understand the intricacies of product growth, the challenges, and other business aspects. For such teams, it's not just about the tech process, so they might be good at not only execution, but also planning, consulting, and other vitals.
Quotes and Pricing
Getting a few quotes, three or four, could help you compare offers. Don't look solely at the final price or estimated MVP cost, look into the deliverables, deadlines, and inclusions.
What if a few weeks of post-launch support are included in the quote? Or what if there are extra guarantees available, like a "two-week money-back policy" in case you're unsatisfied with the collaboration? These little things really count. And if an MVP calculator is available, use it to get some rough estimates.
Best Practices for Establishing an Effective Relationship with Your MVP Partner
What should you count on when working with an MVP agency? Which issues or challenges can you potentially face? Here are some best practices for communication and collaboration.
Improve Communication
Prioritize open and timely communication through regular meetings, updates, and feedback sessions on project progress and any obstacles. Even if you're in different time zones, use reliable communication and collaboration tools to avoid connectivity issues. Having a designated project manager really helps MVP software development.
Distinguish Areas of Responsibility
If you decided to outsource your MVP, successfully managing the project involves juggling numerous components. You'll need to get organized and focus, otherwise, you'll get a delayed mess. How can you better coordinate development efforts on your end? If you want to limit the administrative pressures associated with managing the project, set the rules from the very start.
Have a Roadmap Outlined
Make a clear plan with a timeline to follow so everyone knows what they are in charge of and when to expect the next milestone's completion. If you don't have it, it's worth going through the discovery phase. You'd be surprised, but some MVP development companies can actually give you a hand with that too, helping you plan out the entire project from user stories and design to tech peculiarities.
Learn to Describe What You Want
Your MVP development partner will only build what you explicitly ask for. So, as an employer, you have to be able to clearly articulate what you have in mind and be precise in your requests. No matter if it's a prioritized feature or some small software functionality, you need to provide a detailed yet high-level overview of the primary user flows at least like this: "If a user wants to do A, they go to B, click on C, and see D." Your description of how things should operate must be straightforward and easy to visualize.
Agreements and NDAs
Solid contracts and official documents are crucial for a successful outsourcing relationship too. They define expectations, deliverables, timelines, and terms of engagement, providing a framework for the project. You will be sharing sensitive information with an external partner, so agreements have to be in place to safeguard intellectual property and data.
Looking for a reliable tech partner?
Upsilon can help you plan and develop an MVP that'll grow to be a success!
Final Thoughts on Getting an Outsourced MVP Development Team
The decision to follow the MVP software outsource path can let you focus on your core business processes. It is important to follow the product-led approach when you hand over the technical side to a trusted partner, preferably, having a detailed execution plan lined out to ensure smoother communication.
Who should you partner with? A company that has a solid track record in MVP creation and a skilled web development team. Ideally, they should share your goals, have successfully launched their own products, and strive for a lasting partnership.
If you have an MVP project in mind, Upsilon will gladly give you a hand. We have transparent pricing and can be there for you right from the start, as our discovery phase services are aimed at seamless project planning. We are also available afterward with MVP development services to help bring your product to life, on average, it'll take around three months. Feel free to reach out to discuss the details!
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