Saturday, April 17, 2010

Should Tech Startups Outsource Product Development?

Article: Techcrunch:

Should Tech Startups Outsource Product Development?

When startups ask me whether they should outsource product development, I usually advise against it. If they’re desperate to save money, they should outsource some testing or ancillary-product development, not core products.  That’s because the developers of innovative technologies need to interact with each other and be close to customers and markets.

I think one of the main points against outsourcing is the need for documentation. Though good documentation is always needed, in a fast moving start-up it frequently takes a backseat to actual coding and development time. When working with outsourced companies they generally require more up-front documentation so that they can commit their resources accordingly.

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