Business

IT start-ups. How to grow?

Editor

Although not every startup will become a unicorn, there are many people with visions who decide to set up a new business. How do you develop it? Where can you find support? Where do you get knowledge and competence, especially at the start?  Is IT outsourcing a good idea for small companies? Read the article and find out.

Almost 1/3 of all start-ups are created in the tech industry

The leaders in the startup market have not changed for years. In 2022, the USA, the United Kingdom, Israel and Canada were again at the top. And although the biggest development is taking place in the software development industry (32% of all startups) we can also observe a shift towards healthcare industry.

80% of startups fails after a year

According to the available data for 2021, 80% of startups fail after one year. This is still an improvement, considering that the proportion was 10% higher in 2015. Why so many new businesses can’t make it through?

There are several reasons:

  • No business plan – many startup founders are visionaries with experience in the IT industry. In management, however, you must be both a dreamer and a planner, so you need to take the time to make market research and get to know your competitors (and potential partners!). You also need to discover the needs of customers.
  • Inappropriate target – in other words: “For whom am I doing this? Whom want to reach?”. Targeting too broad, or the opposite, a very narrow niche, can bring fatal results.
  • Financial issues – unfortunately, it turns out that it all comes down to money. Before a company can make a profit, it is necessary to obtain financing, usually in the form of cooperation with investors. The loss of financial resources for many new businesses that are unable to stand out often means the end of the company.
  • Lack of experience in management – many founders have practical experience, still – running a company is governed by its own laws. A great programmer can be a charismatic and well-organized CEO, but he needs to acquire knowledge and commit to the new role. For many developers leaving their profession is out of question.
  • No marketing – be visible, otherwise – you will be missed. Today, there are many ways to reach potential customers (and employees!) and promote your brand. Social media, content marketing, ads campaigns, or personalized mailings are the absolute minimum.

Is using IT outsourcing a chance to growth?

IT outsourcing is widely believed to be a solution for large corporations. Over the years, more cooperation models have emerged in this model, so that today companies from the SMB sector can also benefit from it. Many software houses allow you to hire a specialist for the short time and geographical boundaries are no longer an obstacle, especially when it comes to popular Nearshore software development.

To what extent can IT nearshoring support a startup?

  • Business Analysis – a business analyst in the team facilitates the implementation of projects and helps technical experts and customer representatives to find a common language. The presence of an analyst enables you not only to develop your project, but also to understand and improve processes on a general level and to better manage your documentation.
  • Involvement of additional developers – in times of high employee turnover, keeping specialists on the project is an ever-increasing challenge.  Software programmers want to constantly develop and work with the latest technologies. If the project doesn’t offer them what they need, they search for it elsewhere. It is also worth bearing in mind unexpected situations, holidays, sick leaves, or sudden changes to the scope of the project. Reinforcements in the form of an experienced developer can help deliver the software product on time and even save the entire project.
  • Software testing – today, many teams, especially in the IT branch, take advantage of Agile methodologies. In an approach like Scrum, the team has all the necessary skills, including testers, to deliver the product. However, including an external tester can shed new light on the product thanks to independence and a fresh look. The partner tester can also conduct an audit of the process and recommend implementing best practices and new testing tools as well as provide advice and assistance.
  • IT Consulting – in any other situation, it is also worthwhile taking advantage of the experience of companies present on the market for a long time. IT outsourcing companies often offer a comprehensive portfolio of services and professional support in many areas.