Skip to Content
App Development
6 minutes read

How to Hire Developers for Startup Companies Looking to Optimize Costs

By Robert Kazmi
By Robert Kazmi
App Development
6 minutes read

To hire developers for startup companies, the key is to optimize costs while maximizing talent. Unfortunately, the reality is that hiring developers is a lengthy and costly process. Typically, startups don’t have time to waste when it comes to app development or software development. Startup companies need to attract investors, deliver an MVP, and establish a foothold in the market. Without software developers, accomplishing these tasks is far more complex. 

So how can startups hire developers with enough experience to deliver a quality product without overspending or squandering precious time? This post will explain the best strategy startups can utilize to find developers and employ the industry’s best tech talent. If you are an entrepreneur trying to bring an app development project to life, you will be interested in this blog post. 

How Startups Can Hire Skilled Software Developers 

Do you want to hire world-class developers for your startup but are unsure if you can afford to do so? Startups are in a uniquely precarious position. They need to attract investment to build products and innovate, but they also need to have an innovative product or service to attract investors. As a result, startups need to be cost conscious and spend their financial resources wisely. 

To hire developers for your startup, the best approach is outsourcing. When it comes to app development outsourcing, you are likely picturing an office full of software developers in the far east, in places like China or India. First, this is called offshore outsourcing, and while it is an option, you don’t have to settle for offshore outsourcing, which, as we will explain later, is not a great option anyways. 

Second, outsourcing can also refer to team augmentation. For example, instead of sending your app development project to software developers, you bring skilled tech talent into your business to augment your in-house team. In most cases, you won’t physically bring augmented talent into your offices. Instead, they will join your in-house team remotely. 

The key difference between IT outsourcing and team augmentation is the project management responsibilities. When you choose team augmentation, your startup is still entirely in control of managing the software development project and employees. On the other hand, when you outsource app development, the daily project and talent management tasks are left in the hands of the app development company your startup has hired. 

Some companies will offer development and staff augmentation services, but most companies will specialize in one service or the other. Consider your needs and determine which approach is best for your startup. While costs may vary between outsourcing and augmenting your in-house team, both options are significantly cheaper than recruiting, hiring, and retaining an in-house team of software developers. Beyond cost savings, there are other benefits to these approaches that are ideally suited for startups, including:

  • Scalability 
  • Access to talent 
  • Faster time to market 


Startups have to be able to scale to meet demands as their product grows. Outsourcing and staff augmentation allows startups to scale their software development efforts quickly. If the development needs of your startup change, these approaches offer flexibility that the traditional hiring process cannot match. 

For example, if demand spikes and your startup needs to quickly add additional tech talent to the team, outsourcing and augmentation make this possible without significant delays. On the other hand, trying to hire new software developers as demand outpaces growth will likely lead to delays and disastrous results. 

However, the flexibility afforded by these options is beneficial for slower times too. For example, if your project concludes or cools off after you have invested time and money in hiring development talent, you will have to fire software developers. It is much simpler to scale down when needed than to fire software developers, waste hiring resources, and potentially get a bad reputation with tech talent in the job market. 

Access to Talent 

Besides cost savings, outsourcing and staff augmentation are great options for startups that want to hire developers because these options give companies greater access to tech talent. However, finding developers with the exact skill set your startup requires in your local area can be hard. In addition, if your startup is located in an area with a smaller population, you might discover that you can’t find developers for your projects. 

Outsourcing and augmentation both give your startup access to the top tech talent. By choosing one of these options, your startup is not limited to the software developers nearby. As a result, your startup can access the best tech talent in the world and find specialized developers with the exact skill set your project requires.

Faster Time to Market 

In the startup world, efficiently getting to the market is critical. Outsourcing and augmentation can help your startup get its product to market faster. Instead of spending your time searching for the right tech talent to hire, turn to a provider that can get started on your project immediately. In addition, when you outsource or use staff augmentation services, your startup gets experienced development talent that can start the project immediately. 

As a result, your startup can get its product to market sooner, start making inroads with its target audience, and attract additional investor attention. Sometimes the first product to market gains an insurmountable advantage over the other competitors in the industry. 

Why Your Startup Should Avoid Offshore Outsourcing 

Startups may be drawn to offshore outsourcing because of its low cost. However, offshore outsourcing can put your startup at a disadvantage, complicate its development project, and lead to a poor net result. From a cost-efficiency and quality perspective, the best option startups have is nearshore outsourcing

Nearshore outsourcing doesn’t send software development across the world, where simply syncing up with the development team is difficult because of the significant time difference. For startups in the US, nearshore outsourcing refers to outsourcing in Latin America. 

Yes, nearshore outsourcing is a little more expensive than offshore outsourcing. Still, nearshore outsourcing ensures that you operate in a similar time zone as your software developers, share a stronger cultural bond, and have little to no language barrier. Ultimately, nearshore outsourcing produces better results than offshore outsourcing because communication is easier, and the process can be more collaborative. 

In addition, nearshore outsourcing is the only way you should ever consider team augmentation. Managing offshore tech talent and maintaining regular communication with them when the time differences are vast is exceedingly difficult. 

Final Thoughts 

Recruiting and hiring developers is difficult, especially for startups that might not even have an HR team. The best way to hire developers for a startup is to outsource the entire project to a skilled software development team or utilize team augmentation services. If you need help determining which approach is the best for your startup, reach out to an experienced app development partner. To hire developers for startup companies, you need to be realistic about your budget and expectations.

Girl With Glasses

Want to Build an App?

Contact Us