A problem every FinTech CEO wants to have (and how to solve it)
FinTech companies are one of the fastest-growing business ventures in Europe these days. It comes as no surprise, since EU regulations and countries’ governments are willing to help this flourishing industry. As a consequence of this undeniably positive growth, innovative start-ups have to face the challenge of heavy workload.
The source of the problem
The history of most FinTech ventures begins with an innovative idea for a new system for money management, money spending, money lending, money transfer, money you name it. This particular idea must be adequately addressed, so an appropriate product needs to be developed. After the launch success, market demand for the product gradually increases. Obviously, the bigger the success is, the faster the demand rises. Suppose you are a FinTech CEO and the growth of your start-up is so fast that you need to augment your staff. First, congratulations on your roaring success! But now, it is high time you decided on what to do with this issue. You can choose from 3 options:
Plan A: Hire new workers
This appears to be the most obvious solution. Your company’s growth in the number of clients means heavier workload for you HR departments. However, before a new person and your company click together, your HR needs to spend long hours on-boarding and training them. This is crucial, if you want to make sure that you can trust and rely on your new recruit. What is more, usually one new person is not enough and you need to on-board and train a whole new team. Here, you realise that the world of financial technology is so fast that you simply have no time for complex recruitment processes.
Plan B: Outsource a part of your work
Once you have decided against spending time and money for head-hunting, the most probable plan B is IT outsourcing. Needless to say that today outsourcing is in its heyday. It is a cost-effective and time-saving solution compared to hiring new staff. Thus, no wonder that many companies choose to augment their personnel through it. But FinTech sector is specific. Indeed, it is important that the cost is reasonable and the time is saved, but security and confidentiality are of paramount importance. The former, because of the whole finance industry characteristics, where security of information is the key. The latter, because of the very start-up nature of FinTech – innovative ideas and know-how which have to be kept in secret. Luckily, this plan B is not the end of the list, and you still have option C to choose.
Plan C: Enter into a nearshore partnership
An IT nearshore partnership merges all advantages of an in-house team and outsourcing approaches. Your time and cost are saved and the safety and secrecy are protected (e.g. with a non-disclosure agreement). If a member of the EU, the country will follow similar legislation and you will be protected by European law.
Also, you can feel like your IT nearshoring partner is a part of our in-house team, as there is no time zone difference compared to offshore, distant countries. This allows your managers to organise meetings at their convenience and keep fingers on the pulse of the whole project. Finally, a neighbouring location enables you and your partner to visit each other regularly and develop the bond of mutual trust and with cultural and social similarities, there is a solid foundation for that.
The challenge of heavy workload – an award
The fact that you face heavy workload due to increasing interest in your service can make you feel self-satisfied. Not only does it mean that your business flourishes, but it also implies that it is you (not your competitors) who prosper. It is a problem that every FinTech CEO would like to have and software development nearshoring appears to be the solution they are searching for.