Starting a startup is not an easy task, especially when you have an idea that needs to be brought to life through technology. Here, outsourcing can be a viable option for obtaining external support and development for your idea, but it also presents various risks and challenges. FinView, a startup with an idea to disrupt the traditional debt collections industry through technology, chose to outsource their whole IT development to an external company, Finaps. A bold choice considering the solution developed by Finaps is the foundation of their entire revenue model.
Revolutionising the collections industry
After decades of working in the corporate world, the founders of FinView made the bold decision to leave their regular pay checks behind and become entrepreneurs. Drawing on their extensive domain knowledge, they recognised an opportunity to revolutionise the collections industry. They created a platform that leveraged cutting-edge technologies, data analytics solutions, and redefined the collection process to enable a more personalised and empathetic approach.
According to Tebbitt “The decision to outsource the development was driven by the fact that we did not have the technical experience or know-how to develop the solution.”The option for FinView to hire a team of developers in-house was there, but how would they assess the technical skillset on an architectural level ensuring the platform would be developed to scale? Another risk of hiring in-house developers would be the limited perspective and skills while for the development of the platform many development angles were there to consider such as different ideas and perspectives.”
“The pressure and risk on ensuring the platform’s success were significant, as the platform came before the revenue.” Despite the risk, outsourcing development gave them a talent pool they could not afford to bring in-house.
Finaps as our external CTO
According to Tebbitt, the benefits of an external CTO in the starting phase of FinView were immense. The level of experience and knowledge in the team ensured that they resolved issues with innovative ideas, while also providing subject matter expertise that the startup lacked. The outsourcing decision also ensured that they were able to work closely with Finaps to brainstorm ideas and develop the solution.
Looking back, FinView would make the same decision to hire Finaps as their external CTO at the start phase of the company. “The product is now evolving into version 2, which is even more powerful than we initially envisaged” Tebbitt states. “The success of the solution is driven by excellent teamwork from both sides.”
“The success of the solution is driven by excellent teamwork from both sides.”
In conclusion, outsourcing can be an excellent option for startups with disruptive ideas that require technology solutions. However, it is important to consider the risks and challenges that come with outsourcing and to carefully evaluate potential partners before making a decision. The success of outsourcing depends on effective communication, collaboration, and a strong relationship between the startup and the external company.
