Never Outsource Your Core Business ????

We all want to increase efficiency and improve our bottom line. Outsourcing enables businesses to access specialized expertise without the burden of managing additional resources, thus allowing them to concentrate on their core competencies. However, there is one area where outsourcing can be a significant mistake: your core business.

You cannot trust anyone else to build your core business for you. This is especially true for tech companies, who rely heavily on their products to generate revenue and sustain growth. Outsourcing product development may seem like a smart move, but it's not.

The main issue with outsourcing product development for tech companies is that they put their core value proposition in the hands of people who may not fully grasp the vision or share your commitment to quality. A software factory will follow instructions and create whatever they are told to. But there's a limit to the value that could come from co-creating software products between the founder and a lead developer who understands the vision. This co-creation can only happen if both parties are fully committed.?

Another big problem with outsourcing product development for this type of companies is the misalignment of the essence for both businesses: Any software factory is a service company - and service companies optimize their profit by increasing prices and lowering costs. They will probably take as much time and resources as possible. The bigger the project, the higher their income. Of course, they will push for the project to be longer. In the same way, the lower the cost, the better. And the only variable they have around cost efficiency is manpower: the lower the salaries they pay for their engineers, the better. And what can you expect from low-salary engineers? Low-quality products. As simple as that.

Product companies optimize their profit by increasing the quality of their products. They need the best possible talent to build the best quality product.

Non-tech founders building a tech company, in particular, need to be aware of this risk. If you are not familiar with the technical aspects of your product, you may be tempted to rely on someone else to build it for you. You need to be intimately involved in your product’s development and ensure that the people responsible for creating it share your commitment to quality and excellence.?

My top suggestion for non-technical founders building a business where the product itself is the core value of the company is to find a technical co-founder or at least a great engineer as part of the founding team.

The most effective way to guarantee that your product development team will meet your standards is to keep it in-house, meaning you should build a team of developers and engineers dedicated to producing the highest-quality product. Although this might seem intimidating for non-tech leaders, it's worth the effort. By keeping your product development in-house, you can ensure that your product aligns with your vision, brand, and company values. You can also ensure that your team responds to your needs and quickly adapts to evolving market conditions.

Remember, if your product is the foundation of your business, don't leave it in the hands of others.