Outsourcing Development for Digital Health Startups - image

Outsourcing Development for Digital Health Startups

Outsourcing digital health software development can be a trouble in itself, or can be the solution to a whole series of problems. However, it all depends on whether you find an outsourcing partner that matches your wishes and that you can safely trust with your project. Effectively managing the process can also be a summons, especially if you are completely new to the processes and important nuances of outsourcing.

Although we almost scared you from the beginning of our article, outsourcing development can help you achieve your goals much faster, complete projects on time and efficiently, and scale your team while saving costs.

Outsourcing Explained

To get the best possible result from the process of outsourcing development, you need to understand what it is all about. Don’t rush to ask questions on the Internet or Chat GPT (only if the latter is the bot on our site) — and let’s unravel this outsourcing tangle together!

Outsourcing is the approach of employing an external provider to attain control of a certain work project (or a part of it). Simply put, you engage other people to do specific work for your company — in our case, to develop digital health solutions. When do companies outsource development?

  • When a company or startup doesn’t have an in-house development team. At a certain point, they find themselves at a “crossroads”: either to start a complicated, long, and expensive hiring process or simply to find a team that specializes in the right issue, can start to work promptly, doesn’t require any equipment purchases and has the right experience;

  • When there’s an in-house team, but it lacks certain skills. For instance, you have a team of brilliant iOS developers but need to release a web version;

  • When there are project deadlines, they are not just tightened, but they almost don’t let you breathe. In this case, outsourcing specialists to perform part of the work can significantly reduce the pressure on your employees and ensure a timely release;

  • When the project is too voluminous and the company’s capabilities are, unfortunately, insufficient for its successful implementation;

  • When “support from the flank” helps the team focus on priority tasks. For example, you’ll hire a team of third-party contractors to test software, while your internal staff can move on and start working on other projects.

Why Outsourcing Development for Healthcare Is Special

Offshore development for digital health is special because it involves dealing with sensitive patient information and complying with strict regulatory requirements. And now — about the reasons in more detail.

  • Regulations: The digital health industry is highly restrained, and outsourcing development companies must adhere to strict rules and regulations related to data privacy, security, and compliance with healthcare laws. The team must deeply understand these issues to develop obliging solutions.

  • Domain expertise: Developing digital health solutions requires a deep understanding of the healthcare domain, such as medical terminology, standards, and clinical workflows. The outsourcing company must have the compulsory field knowledge to create products that meet the unique needs of the healthcare industry.

  • Data privacy & security: Healthcare solutions deal with sensitive patient information, so the highest level of information safety must be ensured. The development team must have experience in implementing security protocols, complying with regulations such as, for example, HIPAA (in the US) or GDPR (in the EU), and protecting sensitive data from cyber threats.

  • Quality assurance: Such creations must be of the highest quality, as errors or bugs can have very serious consequences and the stakes are extremely high. The outsourcing vendor must have robust testing and quality assurance processes to guarantee that the solutions meet the highest standards.

  • Communication: Clear and timely communication is critical for successful offshore development in every field, but it can be challenging in digital health due to the complex nature of the industry. Your outsourcing partners must have strong communication skills to ensure that they understand your needs and can provide updates on project progress.

Startups’ Benefits Of Outsourcing Development in Digital Health

One of the challenges that digital health startups face is the need to develop complex healthcare applications, including EHRs, telemedicine platforms, medical device software, patient engagement tools, etc. Developing these solutions by own force can be expensive and time-consuming, especially for startups with limited resources.

To overcome these issues, many healthcare businesses choose to outsource their development work to third-party vendors. What are the benefits of doing so?


Cost is one of the primary factors that drive healthcare startups to outsource their development work. Third-party vendors can provide a team of developers at a lower cost than hiring full-time employees. Additionally, outsourcing allows companies to avoid investing in expensive hardware and software infrastructure, as the vendor is responsible for providing the necessary tools and resources.

Faster Time-to-Market

Another major benefit of outsourcing development for digital health startups is faster time-to-market. By working with third-party providers, businesses can tap into their existing expertise, infrastructure, and technology. This can help accelerate the process and enable the company to launch its product or service faster.

Furthermore, outsourcing development lets startups focus on competencies like marketing and customer engagement, so they can devote more time and resources to building their brand and acquiring customers.


Outsourcing development also provides startups with scalability. Digital health companies often face rapid growth and unpredictable demand. By working with a third-party vendor, they can scale the team up or down as needed, without the time and expense associated with hiring and training new employees.

Furthermore, such a way of development process entitles startups to tap into the provider’s existing infrastructure and technology. This can help them handle sudden spikes in demand without having to invest in new infrastructure or technology.

Risk Reduction

Developing a new product or service is inherently risky, as it requires a significant investment of time and resources. The outsourcing process allows startups to mitigate this risk by sharing it with a partner.

Furthermore, outsourcing development can help reduce the hazard of technical errors or security breaches. By partnering with a provider that has experience in data security and regulatory compliance, startups can ensure that their product or service meets industry standards and regulations.

Main Outsourcing Scenarios

There are diverse modes to approach outsourcing in your software development. One doesn’t necessarily have to employ the complete team if they need only one element, a consultation, or professionals that work with a specific technology.

Let’s inspect various outsourcing scenarios to understand which strategy fits your needs:

Help from Specific Tech Experts

Some enterprises already have a proficient in-house development team. However, they may need to add certain technology to the project or create a version of the project for a specific platform.

This can be solved by hiring remote developers who are familiar with the technology. The number of professionals required largely depends on the scale of the project: you may need just a few outsourced employees for smaller projects or an entire dedicated team for larger ones.

Full Development Team

Many startups, especially small ones, do not have a full development team. Hiring various professionals responsible for software creation (engineers, quality testers, UI/UX designers, and others) can be pricey and time-consuming.

Outsourcing development allows businesses to create technical solutions for their audience while saving money. Companies can also decide how large and functionally diverse teams they need and how deeply they will be involved in the working process. Such outsourcing employees are 100%-dedicated to your project. You manage them fully like an in-house team but for a much lower price and no official employment.

Assistance of a High-Level Professional

All enterprises need to innovate and develop to keep forward with the competition. Turning to outsourcing companies to get professional tech assistance is one of the quickest ways. Such specialists can not only accomplish your requests but also share their technical knowledge.

How to Choose the Outsourcing Development

Here’s a schematic manual on how to begin the software outsourcing strategy.

  • Think about the expected outcome: plan the budget, roadmap, measurement, and deadline;

  • Choose the outsourcing location;

  • Use Google or Clutch to find businesses by healthcare-related keywords plus desired area, for example, software development outsourcing Ukraine or healthcare software development company;

  • Visit the firm website and look for similar healthcare projects the company created in the past: check the Cases or Expertise unit;

  • Scroll the company’s social media: it will show you a sneak peek of the team you’ll partner with;

  • Prearrange a call or leave a request in the contact form;

  • During negotiations, pay attention to the expert’s recommendations on the technology preferences and other tech issues.


Outsourcing can be a solution to pretty much every issue regarding software development in healthcare. Concentrating on business tasks instead of tech questions, assembling the team quicker, saving costs, and expanding the in-house team with niche specialists are points to opt for outsourcing in this sphere.


Mariia Maliuta
Mariia Maliuta (Copywriter) "Woman of the Word" in BeKey; technical translator/interpreter & writer

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