The integration between technology and finance has given rise to a whole new, and fast-growing, industry known as FinTech. Long gone are the day where you need to pay a personal visit to the bank to get your business done, you can now do that through an application on your smartphone. And yet, as more and more Fintech companies join the scene, new challenges arise. One of the most common patterns of thought is that the companies, or startups, want to do everything from scratch. While that is both respectful and admirable, this poses an important question.
Which is better: Developing your own software in the hands of your in-house team, or outsourcing the development to specialized agencies?
In-House Vs. Outsourcing software development
As an emerging startup, entrepreneurs have some traits in common. The most famous of which is wanting to create everything in their own taste. While that is an essential element in being an entrepreneur, what’s even more essential is weighing the options and figuring out the most efficient and cost-effective approach they can take.
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Wanting to develop software for their Fintech startup takes a lot more than they can usually bargain for. Here are their options: hire a full in-house team of IT developers to get their project out and running, or (which is usually the case) being limited in resources to one developer. If luck is on their side, they can hire two developers. You can see why this isn’t the best way to kick start a whole company that depends on the Fintech software for operation.
Meanwhile, there’s a growing trend among Fintech companies of outsourcing the software development to specialized agencies. For instance, many startups choose to hire qualified FinTech developers in Ukraine to get their software ready. This process of outsourcing offers a much faster, efficient, and cost-effective solution which is also of the highest quality.
When it makes sense to outsource FinTech software development
If you’re a Fintech startup and you’re still weighing your options, here are some scenarios where it’d make more sense to outsource your Fintech software development:
1. You need to cut down on budget
Outsourcing your Fintech software development is one of those cases where outsourcing is much more cost-efficient than carrying the operations in-house. To produce this efficient, flawless, software, you’ll need to hire a full team of It developers to get the job done: one or two developers just won’t cut it. When you weigh the costs of payrolls, benefits, physical resources (like office space and hardware), and management fees and time, against the outsourcing budget of the whole project, the numbers become in the favour of outsourcing. Most agencies even offer different packages depending on your budget and needs.
2. You want reliable results
The fact is that even if you find good developers who are ready to work in a startup, they’ll still have to go through a long learning curve to obtain the years of experience a specialized agency can offer. That’s another perk of outsourcing, you are handing out your project to the experts who have learnt the best practices and maximized their workflow efficiency to cut off all unnecessary steps.
3. You’re short on time
If you have a new idea, which is super rare, you’ll know that it’s only a matter of time till someone else thinks of it and executes it. Ideas are gold in the world of business, and time is of critical value. As the Fintech scene is welcoming many new startups and practices, it’s even more urgent to get your idea out into the market and establish your footprint. This is something that a reliable agency can provide you with, as opposed to the time needed by an in-house team to develop, test, update, and then develop some more.
4. Your software needs variable skillset
Specialized agencies provide their services for a living, and they wouldn’t have survived long if they weren’t damn good at their job. When you hire an agency to take care of your software development, you’ll be calling on a team full of experts of varying levels. Most of the agencies also have developers who are trained to use your own terminologies and language, so you don’t have to worry about different backgrounds or mindsets. They understand your work, needs, and environment, and they can deliver the project accordingly.
5. You want to ensure a risk management plan
Especially in the case of emerging startups, the risks and threats often outweigh the factors going for them. With all of the risks you need to put in mind and create backup plans for, wouldn’t it be a relief to cross one (that concerns the core of your work) off your list? That’s something the professional agencies have acquired in their line of work, learning how to be agile in the face of changes without sacrificing the quality of their project. If you have one risk management plan, you can rest assured they have multiple ones.
With the rapid development in the FinTech scene, new ideas are becoming precious gold. It makes little sense to start from scratch and reinvent the wheel in such quickly developing times. When looking for leaner, cost-effective, and efficient way to kick start your Fintech company, outsourcing software development is becoming the trend nowadays. That’s for good reasons, too. If you want to cut down on budget, you’re seeking reliable results, you’re short on time, you need help from a varied skill set of professionals, and you want to have a risk plan ready, outsourcing your software development can be the smartest way to move.