The question of how to scale up quickly in a software startup company is a perennially tough issue. There are some good ways to get started -- starting with a core of really senior people is one time-honored approach. Starting with a core team of people who have worked together at another employer is another approach that often works. The question, though, is how do you scale up beyond that core, and how do you scale up quickly?
I think it's an especially tough issue for people who are process oriented. If an organization is already pretty good sized, then having well defined and efficient processes can be supportive of scaling up quickly. Telecordia added something like 1000 people to its technical staff in the year it was first assessed at CMM Level 5. But that's a very large organization to start with. If you're in startup mode I think it's hard to add staff quickly without your organization's software practices reverting to whatever the industry mean in your geographic area is -- the new staff just has too strong a dilution effect on the existing staff for it to work any other way.
Trying to startup quickly by outsourcing is a dead end as far as I'm concerned, especially to India where turnover is so high. Offshore captives can work, but minimum workable size seems to be about 100 people, and it probably takes 2-3 years of ramp up to get to financial break even. It's hard to find a time-to-market gain in this approach.
So I think the only strategy that has much chance of working is being very, very selective about hiring, co-locating everyone at one facility, and making sure everyone has lots and lots of opportunity to interact both formally and informally, i.e., in addition to meetings you sponsor lots of morale events -- Friday afternoon beer busts, pizza & movie nights at work, trips to football games, dinner at the boss's house, etc. You won't be able to guarantee that the new people will work in ways that are consistent with how the existing people are working, but at least they'll work in ways that are intelligent and they'll be cooperating well. After things slow down a little you can go back in and try to establish more work conventions. You hope!
What do you think? In your experience, what are the best ways for a startup to scale up quickly?