S3Corp. Tech Blog

Outsourcing product development can be an attractive option for entrepreneurs, especially if you lack technical expertise. Large design firms offer the promise of turning your idea into a final product without much effort on your part. However, this convenience often comes with hidden challenges. Below are five essential tips to help you successfully navigate outsourcing product development while ensuring the end result aligns with your vision.

1. Retain Control of Your Product and Keep Learning

As an entrepreneur, your product represents your vision and your effort. The moment you hand over responsibility to a design firm, you risk losing control over your idea. While it might seem appealing to step back and let professionals take charge, doing so could lead to outcomes that don’t meet your expectations. You need to stay involved in every stage of development, not only to ensure the product reflects your initial concept but also to gain valuable knowledge and skills that will benefit your future projects.

You don’t need to handle every task yourself, but your oversight is essential. If you lack technical knowledge, consider adding a technical co-founder to your team. This ensures that someone with the right skills can manage the technical aspects, while you focus on areas such as sales and marketing. By being hands-on throughout the process, you’ll acquire the insights you need for future developments, while ensuring your product remains true to your original vision.

2. Implement Checks and Balances to Reduce Your Risk

When you work with a design firm, they may handle all the checks and balances within their team. However, this comprehensive service typically comes at a high cost. Many entrepreneurs, therefore, opt for freelancers to lower expenses. The problem with freelancers is that you often rely on a single person’s expertise, leaving no one to verify their work. This approach increases the risk of errors or oversights.

To mitigate this risk, consider hiring multiple freelancers who specialize in different aspects of product development. This approach provides you with different perspectives, reducing the likelihood of significant mistakes. Think of it like getting a second opinion from a doctor; you wouldn’t settle for just one perspective when making a critical decision. Similarly, seeking feedback from various engineers will help identify issues before they become costly problems. Even the most skilled engineers can make mistakes, especially when dealing with complex product designs. Regular reviews and feedback from multiple experts will help ensure that the product development process stays on track.

Moreover, conducting design reviews could open opportunities for outsourcing work to offshore developers. While hiring offshore developers can be risky, it is possible to minimize these risks by having independent engineers review their work. This strategy could save a significant amount of money while still maintaining the quality and integrity of your product.

3. Hire Specialized Engineers

Product development, especially for complex electronic devices, requires specialized skills. Rather than hiring a generalist engineer who claims to handle everything, it’s wise to seek out experts in specific areas. Just as you wouldn’t trust your family doctor to perform brain surgery, you shouldn’t expect a general engineer to handle every technical aspect of your product’s development.

For instance, if you are developing an electronic product, you will likely need engineers with different specializations. These might include a circuit design engineer to create the schematic diagram, a layout engineer to design the printed circuit board (PCB), a firmware engineer to program the microcontroller, and a mechanical engineer if your product involves moving parts. Additionally, you may need a mobile app developer for a custom app and an industrial designer to create the physical enclosure. Each of these engineers brings critical expertise that contributes to the success of your product. By hiring specialists in each field, you ensure that every aspect of your product is developed to the highest standard.

4. Don’t Put All Your Eggs in One Basket

Relying on a single engineer or design firm to handle every aspect of your product development can be risky. There are several potential pitfalls, such as the freelancer leaving for another job or the design firm folding. If you’ve entrusted everything to one entity, it can be devastating to lose their services, leaving you to start from scratch.

To protect yourself, consider working with multiple engineers or firms. This way, if one engineer is unavailable or a firm goes out of business, you still have others working on your project. Additionally, you are less likely to experience a complete setback if you hire a diverse team of engineers. Replacing one engineer is far easier than replacing an entire firm, and the risk of losing critical work is reduced.

When choosing engineers, think about building a team that allows you to maintain flexibility. It’s not just about minimizing risk—having a range of engineers with varying expertise ensures that the project moves forward smoothly. Multiple perspectives also improve the overall design, as each engineer brings unique problem-solving approaches to the table.

5. Manage Product Development to Save Money

Outsourcing product development is often seen as a way to save money, but this doesn’t always hold true if you rely on one firm or a single freelancer. Many engineers or design firms charge high rates, especially if they are handling all aspects of your product. A more cost-effective approach is to hire specialized engineers for different stages of development. For example, while a circuit design engineer may charge a higher rate, you could save money by hiring a more affordable PCB designer or firmware programmer for other parts of the project.

By breaking your project into specific tasks and hiring experts for each one, you can manage costs more effectively. When a single firm or engineer manages the entire process, they may charge you a premium for every step. However, by choosing specialists, you can pay lower fees for each part of the project, which adds up to significant savings over time. Moreover, this strategy often leads to a better product, as each engineer focuses on what they do best, resulting in higher-quality work and fewer mistakes.

Conclusion

Managing the development of a new product is not an easy task, but with careful planning and a strategic approach to outsourcing, you can greatly increase your chances of success. Retaining control over your product and staying involved in the process is critical, as is building a team of specialists who can contribute their expertise at every stage. By implementing checks and balances, diversifying your team, and managing costs effectively, you can reduce risks and ensure that your product development runs smoothly. Remember, outsourcing doesn’t mean stepping away from your project—it’s about making smart choices that support your vision and your business goals.