Software development outsourcing is becoming more and more popular and prevalent for tech savvy companies. Before you adopt this model you need to know different models of outsourcing, their use cases, benefits, and how to be successful with it. In this article, we present different outsourcing models and their impact on your business.
Software development outsourcing models
There are some basics you need to pay attention to before you outsource your project. In this guide we would be focusing on the client and provider relationship model. This is primarily because healthy relationships drive business success. When the relationship is right, you don't have to worry about distance. Here are the three main relationship based models:
Staff augmentation model - In the staff augmentation model you own your project from start to end. The client takes the most of the responsibility. You're hiring tech talents from an outsourcing company To strengthen the team responsible for the development projects.
Managed team model - In this model responsibility and ownership are shared by the client and the outsourcing provider determining on which responsibilities belong to whom.
Project-based model - The outsourcing provider takes the most of the responsibility and own the projects from start to end. He or She completes your development projects according to your specifications.
Staff augmentation model for software development outsourcing?
What is staff augmentation?
It's a model of outsourcing strategy where you hire extra tech talents to upscale your team based on your needs. They are employed based on the talents required and can work with a client for a short or lengthy period of time. Is a flexible structure in IT outsourcing. You decide on which ground you need specialists and which of them fit into your requirements.
In the IT sector, staff augmentation firms could provide programmers, QA engineers, designers, marketing specialists, and system administrators.
What are the advantages of staff augmentation?
Significant cost efficiencies - for businesses who looking for cost-efficiency and quality the staff augmentation could be good solution because of:
lower staffing and HR costs lower operational costs lower development costsZero recruitment risk - your outsourcing provider hiring for you tech talents appropriate to project.
Speed to innovation - tech talents + the right expertise + different point of view = speed to innovation
Complete flexibility - you can hire as many developers as you need to reach your goals. Quality resources and skillsets - You could select from a global talent pool of remote software developers. It means you can collaborate with professionals from any part of the globe. Full control over project development - You have full control over development development process and experts who are supporting your project.Dedicated team model for software development outsourcing
What is a dedicated software development team?
This software development outsourcing model gives you access to a team of highly skilled developers. In this model, you and your outsourcing partner share ownership of, and responsibility for, project direction and deliverables. It's a cross between staff augmentation and a completely outsourced solution.
As with staff augmentation, your managed team is dedicated entirely to you and your project. Your managed team operates independently of your in-house team, with an outsourced Project Manager overseeing daily operations and workflows. While the managed team operates autonomously, your outsourced Project Manager reports to and meets with your in-house Project Manager / Product Owner on a regular basis. Typically, these teams are cross-functional. Whatever the requirements of your project, a competent outsourcing provider will be able to customize the structure of your team to achieve the best results.
The managed team model is unusual in that both you and your outsourced partner share risk and responsibility for the final outputs.
From the start, you and the managed team will agree on the scope, roles, deliverables (e.g., deliverables), timeframes, and service-level agreements. Your in-house Project Manager / Product Owner is active throughout the process, assisting in the direction and decision-making of the product. This involves maintaining consistent communication with your outsourced Project Manager.
What are the advantages of a dedicated software development team?
More control over the process of development. A managed team model gives you greater control over the development process than a standard project-based outsourcing model because you have shared responsibility of the deliverables.
Less time commitment between you and your in-house team. The responsibility is taken by your Product Owner or Product Manager, she or he have to control time commitment, agreed-upon communication and duties. It relieves you of managing your project on a day-to-day basis.
Reduced ramp-up efforts and costs. Your managed staff does not require any time to get up to speed. They've probably already worked together on similar projects and are familiar with one other's working methods.
Improved communication. Communication and Coordination are essential skills of any outsourced managed team.
Reduced risk due to proven experience. You'll choose your managed team outsourcing provider in part based on their previous expertise with similar projects. Their previous achievements improve the chances of your project succeeding.
Conclusion
Different problems require different solutions and different software outsourcing models. So you make sure to know what kind of problem you have before looking for a solution. If you're new to outsourcing, staff augmentation is a good and easy start. It gives you a feel of the outsourcing world. As your needs increase and your relationship with your outsourcing partner grows, you can try other models of outsourcing.
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