Google, Alibaba, and Other Tech Giants Started with Outsourced Developers
Startups often operate with limited budgets, and with junior developers worldwide earning an average of over $60,000, hiring a full-time in-house team can be a significant financial burden.
However, by outsourcing their development work, startups can save money while still accessing skilled programmers.
In fact, some of today’s most famous companies began their journey by using outsourced developers.
According to Michael Solomon, CEO of 10x Management, “Even companies that have the money often spend four to eight months searching for the right talent.
If they don’t use freelancers as a temporary solution, they’ll burn through their capital without building their products.”
A report by Startupgrind highlighted some examples of startups that successfully outsourced their development in the early stages:
- Google
Google, one of the world’s most famous companies, started its outsourcing journey in 2011 by hiring over a thousand employees worldwide to handle technical support inquiries.
By 2018, the number of outsourced developers exceeded the number of internal employees, reaching 89,058.
Google did this for two main reasons: first, to connect with technical experts it didn’t have in-house, and second, to cover peak workloads and maternity leaves.
- Fab.com
Jason Goldberg, the founder of Fab, hired a software development company in India to build his e-commerce services project. Over time, he noticed that the website’s needs were becoming more complex, so he decided to acquire the Indian company. - Groove
Alex Turnbull, co-founder of Groove, wanted a co-founder with a technical background. He didn’t have enough product experience to handle the development of a Software-as-a-Service (SaaS) company. When he couldn’t find the right person, he decided to hire an external company for the technical aspects of his business. He realized this would allow him to retain full ownership of his company while saving the money he would have spent on full-time employees. - Alibaba
Alibaba is known as the world’s largest e-commerce marketplace. However, according to the book “Alibaba: The Inside Story Behind Jack Ma and the Creation of the World’s Largest Online Marketplace,” the company initially hired an American company to develop its business.At the time, foreign development talent was still scarce, and the U.S. had the necessary skills for Alibaba to compete with e-commerce giants like eBay. Despite Chinese internet restrictions, they succeeded.
