How Can Startups Afford Software Development? Talking Outsourcing with Tom Hughes

How can startups afford software development? A successful tech entrepreneur who specialises in development for new businesses called into the ProfileTree studio to take part in an insightful discussion.

Tom Hughes, of 3rd Digital, explained his own fascinating background and took us behind the scenes of his award-winning company.

He began by outlining his route to becoming CEO of a Northern Ireland-based software development business.

“I had more than 20 years in mechanical engineering, ten of those were in automotive supply chain and a few years in general industrial. I had ten years in industrial hydraulics, a very specialised market, and worked all over the world.

“I was lucky enough to own a few percent of my last business, we grew that into a couple of hundred million dollar business and sold it in 2013.

“From there, a total change of lifestyle: instead of flying more than 200 times per year, I wanted to spend more time with my family and do more based in Northern Ireland.  I ended up mentoring some startups and other businesses plus invested in one or two.

“In 2015, I thought I’d have my own product startup. It was called JumbleFund, basically Gumtree crossed with JustGiving, and that was my first foray into the into the tech start-up world. Everything was great but when we wanted to develop the product it was a complete nightmare in terms of time as well as cost.”

The turning point came when a colleague asked a contact he already knew in India for help.

“We started to give him bits of work and within a few months we had set up a company of our own, today we have 20 developers.

“We have worked on another couple of our own products, but since August 2019 I’ve really been focusing on selling our development to startups because that’s what we know about.”

Tom’s business offers development expertise including web and native mobile apps and can draw on their own experiences with in-house projects.

“Our products have not been stellar successes, we’ve made so many mistakes ourselves we’re proud of it!

“I used to joke when I was in industrial hydraulics that ‘if you learn by your screw-ups then I’m a genius’. That’s how I feel about where we’re at. I don’t describe myself as a genius, but we’ve been on a really steep curve and we can share our experience authentically with other startups to stop them doing the same silly things that we’ve done ourselves.

“We’ve been on both sides of the table.”

Tom, who has a huge interest in Eastern spirituality and plans to live in India part-time in the future, added some essential insights into outsourcing work to India.

“Whilst I love working with colleagues in India, it shouldn’t be a secret there’s a real cultural gap between Western people and Eastern people. I wouldn’t recommend that any startup, or grown-up company, outsource to India without a lot of homework.

“That’s part of the value we add because let’s say you go online and find a dev house in India or answer an email, you’re going to have a nightmare. This is also the fault of the person who doesn’t know how to communicate properly to someone who is in a very different culture with a very different way of communicating from us.

“We’re good at this, because it’s what we do. We’re more expensive, therefore, than going direct to India but you’re going to have all the advantage of working with an Northern Ireland or European-based house with all the extra flexibility.

“We basically charge three to four times more than we charge our Indian company, I’m very open with our customers about our business model.”

Tom explained that working with colleagues in India meant it was less of a serious issue when a project slips a little from the original time estimate due to the project not carrying the cost of a developer in Northern Ireland.

“We have a lot more freedom in this way, it’s a big advantage. We can practically dedicate a person to a startup for not big money.”

He also explained that availability of a developer is almost immediate in India compared to a lead-in time of up to three months for a developer in Northern Ireland.

To discover much more about software development for startups, and how outsourcing can help, see our full video interview. From software development startups to companies who supply software development services for start ups, it is clearly a complex and fast growing opportunity for more businesses to support within.

Requirements Gathering and Analysis for Software Development Startups

Before the first line of code is written, before the pixels of your user interface dance into existence, lies a crucial stage: requirements gathering and analysis. This stage is the foundation upon which your software is built, a sturdy castle constructed from a deep understanding of your business needs and your users’ desires.

A. Understanding Business Needs:

• What problem are you solving? Define the core value proposition of your software, the need it addresses for your target market.
• What are your success metrics? How will you measure the success of your software? Revenue, user engagement, market share?
• What are your budget and timeline constraints? Be realistic about the resources available and set achievable deadlines.
• Who are your competitors? Analyze existing solutions and identify opportunities to differentiate your software.

B. User Research:

• Who are your target users? Create detailed user personas, understanding their demographics, behaviors, and pain points.
• What are their needs and expectations? Conduct surveys, interviews, and usability testing to gather user feedback.
• How will they interact with your software? Define user journeys, mapping out the steps users take to achieve their goals.

C. Defining Functional Requirements:

• What features are essential for your software? Prioritize features based on business needs, user needs, and technical feasibility.
• What are the technical specifications? Define hardware, software, and platform requirements.
• What are the security and performance requirements? Ensure your software is secure, reliable, and performs well.

D. Creating User Stories and Use Cases:

• User stories: Describe user goals and the features needed to achieve them from the user’s perspective (e.g., “As a customer, I want to search for products by category to find what I need quickly”).
• Use cases: Define specific scenarios where users interact with your software, outlining the steps involved and expected outcomes.

Remember:

• Involve stakeholders: Collaborate with all relevant parties – marketing, sales, developers – to ensure a holistic understanding of requirements.
• Document everything: Create clear and concise requirements documents that serve as a reference point throughout the development process.
• Be flexible: Adapt your requirements as you learn more about your users and market.

Software Architecture and Design for Startups

With the foundation of requirements firmly in place, it’s time to construct the blueprints for your software palace. This is where software architecture and design enter the stage, crafting the grand plan that ensures your software is not only functional but also scalable, maintainable, and secure.

A. High-Level Technical Design:

• Overall structure: Outline the major components of your software, their interactions, and how they work together to achieve desired functionality.
• Technology stack: Select programming languages, frameworks, databases, and other technologies that best suit your project’s needs and team’s expertise.
• Deployment model: Determine how you’ll deploy your software – on-premise, cloud-based, or hybrid – considering factors like cost, scalability, and security.

B. Component Diagram and Interfaces:

• Component diagram: Visually represent the individual components of your software, their relationships, and how they communicate with each other.
• Interfaces: Define clear boundaries and communication protocols between components, ensuring modularity and flexibility in your architecture.

C. Database Modeling:

• Data structure: Design the database schema to effectively store and manage your software’s data, considering data types, relationships, and integrity constraints.
• Data access layer: Implement methods to retrieve, store, and manipulate data efficiently, ensuring data security and integrity.

D. Prototyping User Workflows:

• Interactive prototypes: Create visual representations of user interfaces and interactions to gather early feedback and refine designs before development.
• Usability testing: Conduct user testing with prototypes to identify potential usability issues and validate design decisions.

E. Cloud Deployment Architecture: The Missing Key Element

• Cloud provider selection: Choose a cloud provider (e.g., AWS, Azure, Google Cloud) based on factors like cost, features, reliability, security, and compliance requirements. Evaluating cloud infrastructure fundamentals is an imperative first step when exploring how to start a tech company in today’s cloud-native landscape.
• Infrastructure-as-Code (IaC): Define your cloud infrastructure using code for automation, consistency, and version control.
• Resource allocation: Provision virtual machines, storage, databases, and other cloud resources based on your software’s needs and scalability plans.
• Security measures: Implement firewalls, access controls, encryption, and other security measures to protect your software and data in the cloud environment.
• Monitoring and logging: Set up monitoring and logging tools to track resource usage, performance, and potential issues in your cloud deployment.

Remember:

• Involve architects and developers: Engage experienced architects and developers in the design process to ensure technical feasibility and alignment with best practices.
• Prioritize scalability and maintainability: Design for growth and easy maintenance to accommodate future changes and updates.
• Document design decisions: Create comprehensive design documentation for reference and knowledge transfer within the team.

The Software Development Process for Startups

The stage is set, the blueprints are ready, and the orchestra is warming up. It’s time to bring the music of your software to life through the symphony of code and creativity. This is where the software development process takes center stage, transforming ideas into tangible features and functionalities.

A. Coding and Implementation:

• Writing code: Developers translate design specifications into code using chosen programming languages and frameworks, adhering to coding standards and best practices.
• Version control: Use a version control system (e.g., Git) to track code changes, manage collaboration, and revert to previous versions if needed.
• Agile development: Break down work into short cycles or sprints, prioritize tasks, and adapt to changing requirements through iterative development and frequent feedback loops.

B. Code Reviews and Testing:

• Code reviews: Developers review each other’s code to ensure quality, adherence to standards, and identify potential issues early on.
• Unit testing: Developers write automated tests to verify individual units of code function as intended, catching bugs early in the development process.

C. Bug Fixing and Refinement:

• Bug identification: Use testing and debugging tools to locate and fix software defects, ensuring a smooth user experience.
• Code refactoring: Improve code structure and readability without altering functionality, making it easier to maintain and update in the future.

D. Documentation:

• Technical documentation: Create clear and concise documentation for developers, detailing code structure, design decisions, and usage instructions.
• User documentation: Develop user guides, tutorials, and help resources to assist users in understanding and using the software effectively.

E. Integration Testing:

• Bringing it all together: Combine individual components and modules to test their interactions and ensure they work together seamlessly as a whole system.
• Identifying integration issues: Uncover potential conflicts or communication problems between different parts of the software.

Remember:

• Prioritize quality: Enforce coding standards, conduct thorough testing, and fix bugs promptly to deliver a high-quality software product.
• Collaborate effectively: Foster communication and knowledge sharing within the development team to ensure alignment and efficiency.
• Use development tools: Leverage IDEs, code editors, testing frameworks, and debugging tools to streamline the development process.
• Embrace continuous integration and delivery (CI/CD): Automate testing, integration, and deployment processes to expedite development cycles and ensure rapid delivery of updates.

Deployment and Maintenance

The curtain rises, the applause begins, and your software takes its bow on the world’s stage. But the journey doesn’t end there. Deployment and maintenance are crucial for ensuring your software thrives in the spotlight, delivering a seamless user experience and evolving with changing needs.

A. DevOps Processes and Automation:

• DevOps: Breakdown silos between development and operations teams, fostering collaboration and automation for efficient software delivery and improved DORA metrics.
• Continuous integration and delivery (CI/CD): Automate testing, building, and deployment processes to streamline updates and reduce time to market.
• Infrastructure as Code (IaC): Define and manage infrastructure configurations using code, ensuring consistency and repeatability in deployments.

B. Monitoring Performance:

• Monitoring tools: Track key metrics like uptime, response times, resource usage, and error rates to identify issues and optimize performance.
• Alerting: Set up notifications for critical events or performance thresholds to proactively address potential problems.

C. Continuous Updates and Fixes:

• Bug fixes: Release patches to address software defects and security vulnerabilities promptly.
• Feature updates: Add new features and enhancements to meet evolving user needs and stay competitive.
• Version control: Manage different software versions effectively and roll back to previous versions if necessary.

D. Adding New Features:

• Gather user feedback: Incorporate user input and market trends to prioritize new features and functionalities.
• Plan and develop: Conduct careful planning, design, and development to integrate new features seamlessly without compromising existing functionality.
• Test and release: Thoroughly test new features before release to ensure quality and avoid introducing new bugs.

Remember:

• Prioritize security: Implement robust security measures to protect your software and user data from attacks and vulnerabilities.
• Gather user feedback: Actively collect user feedback to identify areas for improvement and prioritize future development efforts.
• Plan for growth and scalability: Design your deployment and maintenance strategies with future growth in mind, ensuring your software can accommodate increased usage and functionality.

Orchestrating the Process: Software Development Methodologies

Just as every symphony has a conductor, every software development project needs a guiding methodology. These frameworks provide structure and rhythm to the development process, ensuring everyone plays their part in harmony.

A. Waterfall vs Agile vs Lean:

• Waterfall: A traditional, sequential approach with distinct phases (requirements, design, development, testing, deployment), often less adaptable to change.
• Agile: A flexible approach emphasizing iterative development, frequent feedback, and continuous adaptation to change, well-suited for projects with evolving requirements and rapid delivery cycles.
• Lean: Focuses on eliminating waste, maximizing value, and delivering working software quickly, often used in conjunction with agile principles.

B. Scrum Framework:

• Popular agile framework: Breaks work into short sprints (typically 2-4 weeks), with daily stand-up meetings, sprint planning, reviews, and retrospectives.
• Product backlog: Prioritized list of features and tasks.
• Sprint backlog: Tasks committed to during a sprint.

C. Extreme Programming (XP):

• Emphasizes customer involvement, rapid feedback, continuous testing, and close collaboration within the team.
• Practices: Pair programming, test-driven development, continuous integration, refactoring, simple design.

FAQ: Your Software Development Startup Voyage Questions Answered

Q: How much does it cost to develop software?

A: It depends on numerous factors like project complexity, team size, chosen technologies, and development methodology. Get personalized estimates from software development companies like Profiletree to accurately assess your project’s budget.

Q: What are the biggest challenges faced by software development startups?

A: Funding constraints, limited talent, fierce competition, and navigating evolving market trends are common hurdles. This guide equips you with strategies to overcome these challenges and increase your chances of success.

Q: What skills do I need to start a software development startup?

A: Technical expertise in coding, design, or project management is valuable, but strong communication, business acumen, and leadership skills are equally important. Profiletree can be your partner, providing expert services to fill any gaps in your team’s skillset.

Q: Where can I find more resources and support for my software development journey?

A: Attend industry events, join online communities, and access valuable educational resources available from Profiletree and other software development specialists.

Q: How can Profiletree help my software development startup succeed?

A: Profiletree offers comprehensive services covering project management, talent acquisition, marketing and communication tools, data-driven insights, and expert guidance. We’re your one-stop shop for navigating the software development journey and launching a thriving software product.

Conclusion: From Symphony to Success – Unleashing Your Software Dream

Building software is an orchestra of code, creativity, and dedication. This guide has equipped you with the knowledge and tools to conduct your own software development symphony, from understanding user needs to deploying and nurturing your software creation.

But remember, this is just the beginning. Embrace the challenges, learn from failures, refine your process, and stay flexible in the ever-changing digital landscape. With the right passion, a dash of technical expertise, and Profiletree as your trusted partner, you can transform your software dream into a symphony that resonates with users and conquers the market.

Take the first step today. Compose your software story, one line of code at a time, and watch your startup rise to a standing ovation on the grand stage of the software world.

Insights from ProfileTree Business Leaders

What is Energy Monitoring | What is Sustainable Tourism | How to Create Digital Products | Online Learning for Business | Why is FDI Important | How to Create a Culture of Innovation | What is Augmented Reality | How to Manage a Restaurant | Do you have a Tourism Strategy | What is Conflict Resolution | Intercultural Training | How to use Mindfulness at Work | Bookkeeping for Small Businesses | How to get a Better Job | How to Start an eCommerce Business| What is Learning Technology | Starting a Business| Advice for Developers