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Scams in Software Outsourcing: How Startups Lose Thousands Without Realizing It

Scams in Software Outsourcing: How Startups Lose Thousands Without Realizing It

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In this episode of Startup Behind the Scenes, we dive into a painful but common startup experience - getting scammed by outsourcing companies, subcontractors, or “partners” who fail to deliver results. Unlike typical “software scam” definitions, we’re talking about real-world business scamming - when people lie about their skills, overcharge you, or simply waste your funding with no accountability.

You’ll learn three major types of scamming every founder faces sooner or later:

1. Lack of accountability for results

2. Lack of technical skill hidden behind smooth talk

3. Lack of respect for your funding - treating your money like “free money.”

If you’re building a startup, outsourcing development, or managing early funding - this episode could save you hundreds of thousands and months of frustration.

Timestamp:

(00:00:00) - The scam no one warns founders about

(00:01:58) - Map the 3 scam types you’ll face

(00:03:41) - Spot Scam #1: No accountability for results

(00:08:26) - Spot Scam #2: Lack of skill (Power BI & AI hype)

(00:15:59) - Spot Scam #3: Disrespecting funding + how to choose honest partners

About the host: Julia George (she/her) - the Startup Witch herself. After swapping boardrooms for baby bottles, Julia broke free from her corporate cage, chasing a more flexible, meaningful life. She conjured pricing and sales excellence consultancy, then co-founded several SaaS startups. And that’s when the real magic (and mayhem) began.

The 9-to-5 spell turned into 16-hour nights - fueled by caffeine, chaos, and customer complaints. But every bug, broken feature, and blown deadline became a lesson worth sharing.

Now Julia channels her experience to help other founders break their own startup curses, build smarter, and feel a little less alone in the madness.

Follow on Instagram: startup_witch

Follow Julia on LinkedIn: https://www.linkedin.com/in/juliageorgi/

Visit Julia's innovation Studio: https://kbngconsulting.com/kbng-innovation-studio

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