This article could have discussed the fact that 74% of companies outsource information technology services, global IT outsourcing is predicted to exceed $460 billion this year, and all global tech players, from LinkedIn to Google, leverage the services of software outsourcing companies (resource: its majesty, ChatGPT).
However, since you are here, we assume, you already know that. As a blockchain startup founder, what interests you more is whether blockchain software outsourcing is worth trying.
In this article, we’re going to explore the top 5 benefits of outsourcing developers in the blockchain field, and how it can positively impact your innovative business endeavor.
But before we dive into that, let’s set the stage…
First Things First: What’s Outsourcing?
In the realm of blockchain development, just like any other software development field, outsourcing involves hiring external professionals or development firms to implement a blockchain-based solution for your startup. This can encompass a range of services, from outsourcing software development tasks to design, quality assurance, and even project management for a product.
It’s important to note that outsourcing is different from outstaffing, where remote employees are hired through a third-party provider to work as a part of an existing team. With outsourcing, a company or a startup entrusts a project to a software development company to receive assistance in building a solution.
Companies often opt for outsourcing when they lack the necessary expertise or resources and are eager to enter the market as swiftly as possible.
As indicated by Crunchbase, there are currently more than 3000 blockchain startups out there. If you are one of them, bespoke software development can be a win-win scenario for your business, and here’s why:
Reason #1: You Get Access to a Global Pool of Blockchain Talent
It’s no secret that blockchain expertise is not evenly distributed across countries worldwide. As stats and practice show, India, Eastern Europe, Southeast Asia, and Latin America are among the regions with the highest concentration of qualified blockchain developers.
Let’s say, in your own country, you’re facing a challenge in finding a skilled blockchain developer with the specific scope of experience you need. Due to a limited number of specialists in your region, it becomes time-consuming or even impossible to secure the right talent.
This is where blockchain software outsourcing comes into play. By considering the option of outsourcing developers from abroad, you open up access to an extensive network of talented professionals from all corners of the globe, breaking free from the constraints of geographic limitations.
Moreover, this approach allows you to compare the skill levels of blockchain developers from different countries, which will help you improve your business go-to-market and talent recruitment strategies.
Reason #2: Getting More for Less: It’s All about Reduced Costs
You might initially think that hiring a team for blockchain software development would be costlier compared to relying solely on your in-house team. However, in reality, software outsourcing can lead to significant savings.
Actually, according to the research done by the Entrepreneur, 59% of companies surveyed mentioned price reduction as their main reason to go outsourcing.
Firstly, hiring an outsourcing company is often more economical than hiring full-time employees directly. You can leverage the expertise of a specialized team without the overhead costs of maintaining an in-house team.
Secondly, as said before, by conducting thorough global research, you can identify countries with lower per-hour payment rates and hire a team from one of these regions, resulting in cost-effective solutions.
Moreover, when you hire an already established team of blockchain professionals, you do not have to spend your money and time resources teaching them the things they already know.
Lastly, choosing outsourcing developers eliminates the need to invest in physical office facilities and related expenses.
All these factors make blockchain outsourcing services a prudent decision, especially for early-stage startups with limited resources in terms of personnel/finances/technical expertise/whatever.
Reason #3: Blockchain Outsourcing = Faster Results
We all know how time-consuming it can be to hire an in-house blockchain developer. Even if you’re fortunate enough to find one, training them will add more delays.
With outsourcing developers in blockchain, things become much simpler and faster:
- There is no need for you to look for and educate them – they are already here and possess the specialized knowledge and skills you require.
- A blockchain outsourcing company typically has a well-established communication and development process. You won’t have to waste time guiding them through tasks they excel at and have already handled for numerous clients.
- It’s not just limited to software outsourcing. Whether your project is growing or starting from scratch, you can tailor the team size to your needs. You can request professionals for various roles, such as designers, PR managers, project managers, QA specialists, and even HR managers.
- Blockchain software outsourcing allows you to allocate your time and internal resources to other crucial aspects of your business, such as enhancing your marketing and business strategies, acquiring new partners, and more. Delegating blockchain development tasks leads to increased overall productivity and faster business growth.
Reason #4: Wanted Dead or Alive: You Get Access to the Needed Blockchain Expertise
Although blockchain technology has been with us since 2009, due to it complicated adoption, it’s still in its relevant infancy. Thus, finding a blockchain developer with solid experience and high-level skills remains a challenge, especially in countries where cryptocurrencies are heavily regulated or even prohibited.
Depending on the product, a blockchain developer must possess a stack of specific knowledge in the relevant high and low level languages for smart contracts development, standards and proper development stacks, specifics of CEXs, DEXs, dApps, decentralized game development, and more. However, blockchain expertise doesn’t end there. A proficient blockchain specialist must know how to ensure the product being built is:
Since they keep sensitive data, blockchains are attractive targets for hackers. Developers must extensively look into smart contracts and dApps’ most common attack vectors to avoid like double-spending, unauthorized access, 51% attacks, and smart contract vulnerabilities. This may include utilizing established libraries and frameworks, conducting thorough code reviews, performing regular penetration tests, implementing robust key management practices, selecting the appropriate consensus mechanism, conducting regular audits and system updates, and more.
When the number of participants and transactions increases, your blockchain network may face scalability and performance challenges. A skilled blockchain developer must consider these factors while designing a system that can manage a high volume of transactions without affecting the network performance.
As mentioned in one of our previous articles, currently, Web3 is not interoperable. This means different blockchain networks cannot communicate directly, operating more like separate ecosystems rather than a unified network of different chains. This is one of the most pressing issues being solved in the Web3 world by different cross-chain protocols, crypto bridges, and more.
Achieving blockchain interoperability can be challenging due to differences in data formats, protocols, and consensus mechanisms. A good blockchain developer has to know how to build and support a blockchain system compatible with other chains.
The decentralized nature of blockchain often requires users to manage their cryptographic keys and interact with unfamiliar concepts like wallets, addresses, and transaction confirmations. A skilled blockchain developer must simplify these complexities and provide a seamless user experience, making the product easy to use and navigate, thus facilitating its adoption.
Reason #5: We are Who We Work with: Outsourcing Software Development Is about Experience Sharing
It’s not just about blockchain developers from different countries; any new member added to your blockchain team can bring a fresh perspective and novel ideas to tackle intricate blockchain challenges.
When you outsource developers, you automatically initiate a process of exchanging diverse experiences, fostering creativity, and encouraging innovation. This collaboration results in the creation of a more robust and cutting-edge blockchain solution.
Consider blockchain software outsourcing as a form of mentorship for you or your in-house team, potentially propelling your business to new heights.
As an outsourcing development team ourselves, Syndika has demonstrated all the benefits of outsourcing developers presented in this article.
Want to know more about us?
At Syndika, we are building the world’s first Web3 and AI syndicate – an ecosystem of Web3 leaders and experts that provide corporates, companies, and initiatives with full-scale capabilities in Web3 and AI.
With the support of our syndicate Members, our team of blockchain specialists offers an extensive array of Web3 services. These encompass everything from consulting and R&D to architecture, outsourcing software development, business development, and related services.
Unlike traditional outsourcing companies, we give access to a big ecosystem of Members – a group of Web3 professionals that assist in building and scaling your startup.
We treat each startup we build as a part of our ecosystem, thus, rest assured: your product is entrusted to safe and capable hands.
To get our tailored blockchain services, please, contact us here.
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