Europe has become a breeding ground for startups, with Great Britain, Sweden, Germany, France, and Norway in the first top-5 countries fostering entrepreneurial ecosystems that attract local and international talent. According to recent data, European countries host thousands of IT startups which collectively attract billions of euros of investments.
- How do you build an IT startup?
- What services can an IT startup delegate to an outstaffing company?
- Examples of startups that achieved success thanks to outsourcing or outstaffing
- Why opt for outstaffing instead of outsourcing?
- What are the ten best IT outstaffing companies in Europe?
- How much can an innovative startup development cost with Flytika?
Let’s look closer at the possibilities that IT outstaffing and outsourcing open in front of European startups. Read on to find out how delegating IT functions can help aspiring entrepreneurs scale their businesses.
How do you build an IT startup?
The key steps of a startup foundation can vary depending on the nature of the business and industry. Here are some key milestones startups typically encounter during their foundation phase.
- Idea and concept development. This is the initial stage, where the founders come up with a business idea and develop a concept around it. They conduct market research, identify potential target customers, and evaluate the feasibility of their idea. →
- Market validation. Startups need to validate their business idea by conducting market research, analyzing competitors, and gathering feedback from potential customers. This milestone involves testing the market demand for the product or service and determining if there is a viable market opportunity. →
- Formation of a team. Building a strong team is crucial for the success of a startup. At this step, founders identify and recruit key team members who bring relevant skills and expertise. →
- Business plan and strategy. Startups develop a comprehensive business plan that outlines their goals, target market, revenue model, and growth strategy. This step involves refining the business model, setting clear objectives, and creating a roadmap for achieving those goals. →
- Product development: Startups begin developing their product or service based on the validated idea and market research. This milestone includes designing prototypes, conducting product testing, and iterating based on user feedback. The goal is to create a minimum viable product (MVP) that can be launched in the market. →
- Launch and customer acquisition. The launch marks the introduction of the startup’s product or service to the market. Startups aim to acquire their first customers and generate early traction. This phase involves marketing and sales efforts, establishing partnerships, and building brand awareness. →
- Funding and investment. Startups often seek external funding to fuel their growth. This phase includes securing seed funding, angel investments, or venture capital funding. Founders prepare pitches, meet with potential investors, and negotiate investment terms to secure the necessary capital for scaling the business. →
- Scaling operations. Once a startup achieves product-market fit and secures funding, the focus shifts towards scaling operations. This phase involves expanding the team, optimizing processes, implementing growth strategies, and acquiring a larger customer base. Startups aim to achieve sustainable growth and increase market share. →
- Revenue generation. This step involves implementing monetization strategies, establishing pricing models, and refining sales and marketing efforts to drive revenue growth. →
- Expansion and market penetration. As the startup matures, it aims to expand its reach and penetrate new markets. This milestone involves launching in new geographic regions, diversifying product offerings, and scaling operations to meet growing customer demand. →
- Acquisition or exit strategy. Some startups aim for an acquisition or exit strategy as a major milestone. This involves attracting potential buyers or investors who see value in the startup’s product, team, or intellectual property.
The timeline and sequence of these milestones can vary for each startup. Some milestones may be achieved simultaneously or in a different order based on the startup’s unique circumstances and industry dynamics.
What services can an IT startup delegate to an outstaffing company?
Almost every phase of the mentioned above can be delegated to third parties. If you don’t want to lose control over your new project, opt for outstaffing and simply reinforce your existing tech team with external specialists. Here are some tech departments you can make stronger with some additional help.
- IT Consulting. Outstaffing companies often offer IT consulting services, providing startups with expert guidance on technology strategies, roadmaps, and industry best practices.
- R&D. Hire a research and development team that will help you out with marketing analysis, product strategy, or NextGen technologies like AI or ML.
- Software development. Leverage the expertise of outstaffed software developers to build robust and scalable applications tailored to your unique requirements.
- QA/QC. Ensure the quality and reliability of your software products through comprehensive testing processes.
- IT support and maintenance. Ensure uninterrupted operations and timely resolution of all your technical issues.
- Web and mobile app development. Access specialized developers skilled in building cutting-edge web and mobile applications.
- Data analysis and business intelligence. Take advantage of outstaffed data scientists and analysts. Gain insights for informed decision-making and enhanced business strategies.
- UI/UX design. Make sure that your products provide seamless and intuitive user experiences by delegating design to experts.
- Cybersecurity services. Protect your sensitive data and systems from potential threats.
- Cloud services and infrastructure management. Leverage the cloud expertise of IT vendors to manage your infrastructure, optimize costs, and ensure business scalability.
If you have doubts about whether you should get external assistance at the very beginning of your project, just think of all the companies that made it to the market and beyond exclusively thanks to IT outsourcing/outstaffing.
Examples of startups that achieved success thanks to outsourcing or outstaffing
The following examples demonstrate how outsourcing and outstaffing have played pivotal roles in the growth and success of multiple startups. By delegating certain functions to external experts, these companies were able to optimize their operations, accelerate development timelines, and tap into specialized skill sets.
Spotify. The music streaming giant initially relied on outsourcing to scale its platform, enabling rapid expansion and global reach.
By outsourcing certain development and operational functions, Revolut was able to accelerate its growth and become a leading digital banking and financial services provider.
TransferWise. This disruptive fintech startup leveraged outsourcing to build its peer-to-peer money transfer platform, revolutionizing the traditional banking landscape.
The widely-used collaboration platform, Slack, turned to outsourcing to bolster its engineering capabilities, ensuring a seamless user experience and continuous innovation.
Rovio Entertainment. The creators of the immensely popular game, Angry Birds, outsourced parts of their game development process.
The Finnish mobile game developer, Supercell, embraced outsourcing to access specialized talent for game design and development, resulting in the creation of highly successful titles such as Clash of Clans and Clash Royale.
Skyscanner, a popular travel search engine, attributed its early success to outsourcing key functions such as software development and data analysis.
The groundbreaking communication platform, Skype, utilized outsourcing to enhance its software development capabilities, allowing them to deliver a reliable and feature-rich product to millions of users worldwide.
King. The creators of the addictive game Candy Crush Saga relied on outsourcing to handle aspects of game development, enabling them to focus on game design and user engagement strategies.
The food delivery platform, Deliveroo leveraged outsourcing to expand its operations rapidly, ensuring efficient delivery logistics and customer support across multiple cities.
Why opt for outstaffing instead of outsourcing?
While outsourcing is a widely practiced strategy, outstaffing offers distinct advantages for startups. Here are a few reasons why startups may opt for outstaffing over traditional outsourcing:
- Access to top talent. Outstaffing provides startups with direct access to highly skilled professionals who become dedicated members of their teams. This allows for seamless collaboration and aligning resources closely with the company’s vision and goals.
- Retaining control and transparency. With outstaffing, startups have greater control over the project’s progress, as the team members work exclusively for them. This ensures transparency in project management, progress tracking, and resource utilization.
- Scalability and flexibility. Outstaffing offers startups the flexibility to quickly scale their teams up or down based on their evolving needs. This agility is crucial for startups as they navigate uncertain market conditions and adapt to changing business requirements.
- Cost-efficiency. Outstaffing can often be more cost-effective compared to outsourcing, as it eliminates the need for middlemen and minimizes additional management layers. Startups can optimize their budgets by directly hiring skilled professionals on a flexible basis.
- Cultural alignment. Startups often place great emphasis on company culture and team dynamics. With outstaffing, startups can ensure a better cultural fit by selecting team members who align with their values, work ethic, and collaborative spirit.
- Knowledge retention. Through outstaffing, startups can retain knowledge and expertise within their organization. As team members work closely with the core team, knowledge transfer and institutional memory are preserved, ensuring long-term benefits for the startup.
- Enhanced innovation and collaboration. Outstaffing encourages closer collaboration between the extended team and the startup’s core team. This promotes knowledge sharing, innovation, and the exchange of diverse perspectives, fueling creativity and driving startup growth.
What are the ten best IT outstaffing companies in Europe?
If you don’t know where to start your search for the perfect IT vendor, here is our short list of top IT outstaffing companies that have proved their high professionalism through the years.
- Flytika offers comprehensive IT outsourcing and outstaffing services, providing startups access to a wide range of technical expertise and resources.
- Ciklum offers IT outstaffing solutions across various European locations, with a focus on providing highly skilled developers and comprehensive support throughout the project lifecycle.
- EPAM Systems is a global provider of IT services and outstaffing solutions, offering access to a vast talent pool across Europe for startups seeking to augment their teams.
- GlobalLogic provides comprehensive IT outstaffing services, connecting startups with skilled professionals to drive innovation and accelerate development.
- Luxoft specializes in IT consulting and outstaffing services, offering tailored solutions for startups looking to leverage external expertise and resources.
- ELEKS is a trusted outstaffing partner known for its expertise in software development and IT consulting, assisting startups in accessing top talent and achieving their business objectives.
- MWDN specializes in connecting startups with top-notch IT professionals from Ukraine, Poland, Hungary, and Israel, providing seamless outstaffing services tailored to specific project requirements.
- Intellias provides dedicated teams of IT professionals to startups, offering a wide range of software development and engineering services to drive innovation and growth.
- Proxify is a platform that connects startups with carefully vetted freelancers and outstaffing providers, offering flexibility and access to a global talent pool.
- N-iX specializes in IT outstaffing and software development, delivering end-to-end solutions to startups seeking to extend their teams with skilled professionals.
These are just a few of the top IT outstaffing companies in Europe, each known for their reliability, expertise, and ability to cater to the specific needs of startups. Explore these options and evaluate them based on your project requirements, budget constraints, and desired level of engagement.
How much can an innovative startup development cost with Flytika?
The cost of hiring skilled professionals in Poland, Hungary, the Czech Republic, and Moldova is generally lower compared to Western European countries, which allows us to keep affordable prices for our services while maintaining a high level of expertise.
Disclaimer: The cost of startup development can vary based on the scope and complexity of the project. Factors such as the size of the development team, the number of features and functionalities, and the technology stack required all contribute to the overall cost.
However, as a rough estimate, startups who decided to work with Flytika can expect the following approximate costs:
MVP development: The cost of developing a minimum viable product can range from $20,000 to $50,000, depending on the complexity and functionality of the product.
Full product development: Developing a fully functional product can range from $50,000 to $200,000 or more, depending on the size of the team, technology requirements, and additional features.
Design and UX: Design and UX services can cost approximately 10% to 20% of the overall development budget, depending on the level of sophistication and customization required.
Ongoing maintenance and support: Startups should also budget for ongoing maintenance and support costs, which can range from 10% to 20% of the development cost per year.
IT outstaffing has emerged as a catalyst for startup innovation in Europe, enabling startups to leverage top talent, optimize costs, and focus on their core competencies. By delegating certain services to outstaffing companies, startups can access a vast pool of skilled professionals, drive innovation, and accelerate growth. The examples of successful startups that have grown through outsourcing or outstaffing demonstrate the significant impact these strategies can have on a startup’s trajectory.
As the European startup ecosystem continues to evolve, IT outstaffing will likely play a crucial role in driving innovation, fostering collaboration, and enabling startups to compete on a global scale. By embracing outstaffing as a strategic approach, startups can position themselves for success, harnessing the power of external talent and expertise to fuel their growth and achieve their entrepreneurial vision.