Jānis Blaus
Jānis Blaus
28 November, 2018

Outsourcing whole development teams

In our previous posts, we've already discussed the concept of outsourcing as well as exploring the different options of outsourcing, the range of prices or each of these options, and the advantages and disadvantages of outsourcing. However, the posts I'm referring to are entirely based on the assumption of resorting to outsourcing in a one-time scenario where the development process is facing a tight project schedule or not having the sufficient skills within your in-house development team to get a certain job done.

In this post, we will be exploring the option that many businesses in the software development market have chosen to base its business model on, that is to outsource the whole development team. The meaning of outsourcing the whole development team is to simply have your business deal with, the client, customer service, publicity, and PR side of things, while having “the kitchen” or the actual development process done by an outsourced development team. It involves not having developers, testers, or any role that is directly related to the actual development process as a permanent hire in your company.

Is outsourcing whole software development team the right option for you?

Well, it depends! Essentially, there are two types of software company owners.

1. The Businessman.

If you are the type of software business owner who has no expertise in software development as a process, you probably have been struggling with everything, starting from forming the right team members that match your needs and package and to making sure that your in-house developers are qualified and actually competent enough to get the job done. You struggle with issues such as requirement gathering, documentation and effective communication with your clients. If you have ever faced some or all of these problems managing your software-related business, then I have good news for you! The solution to all of these problems is to have an outsource development team to handle the entire software development process. This way you would be delegating all the annoying overloads that you are not specialized into a professional team, plus would not require to deal with the headache of managing that team.

2. The Technical Expert.

If you are, on the contrary, a software developer, or playing any other role of the software development process for that matter, who decided to invest in a software company since you already have the needed experience or the know-how. First, you need to know, if it’s not clear to you by now, that the managerial side of things is not about having successful technical skills. You can be a one of a kind developer, or a genius software analyst, but when you open your own software company, you find yourself failing. So, you too may have faced other problems and exhausting challenges while attempting to manage an in-house technical software development team. And, in that case, you too are going to benefit from outsourcing your whole software “kitchen” to an outside team. I talked so much about the problems and how outsourcing whole development teams have the potential to solve them. Here comes the part that's even better- many useful details on outsourcing whole development teams.

Is Outsourcing whole development teams the future?

First, let’s start with the most important point that any software company, or any company generally, is concerned with one thing - the future! It’s not just the future of the company, but the future of the whole market in which that company operates, and in our case, it is the software market. Many indicators are saying that the idea of outsourcing whole development teams is well on its way to becoming the dominant model that most software companies are heading to adopt in the next few years. A study conducted back in 2014 has accurately predicted the future growth of outsourcing software development as a whole to an outside team rather than hiring an in-house team of software developers. Outsourcing is good, especially for small businesses.

The cloud technology and software development

If the word “cloud” in this context only means to have your data stored on a rented space on a server, you possess half knowledge. You might be wondered to know what does cloud technology have to do with software development and outsourcing? Well, as you know, a cloud is the rented server space where individuals and companies store their data so that it is accessible by them regardless of the device used. This cloud concept has expanded over the years to include not just rented space on a server, but also to have almost every technology service done for you by that cloud.

How the cloud contributes to the development process?

If you, for example, have uploaded a website or a personal blog to a server before, you must have noticed that many servers offer to have WordPress and many other CMSs installed for you on your cloud space. Likewise, you can have modifications, design, maintenance, and most of the other software-related services that an individual or a business might need, done by the cloud technology.

Does the cloud technology represent competition to outsourcing?

Many reports state that the future of the business world is not actually ‘outsourcing,’ but is ‘the cloud technologies’. To be honest, I find these reports biased. You see, if the market for software development defines outsourcing is to have the technical part of the job done by developers working outside your company with a third-party, without hiring a permanent in-house team of monthly-paid developers. Does that not mean that using cloud service is in fact outsourcing? The way I, and many others, see it is that the cloud services are in fact a new form or model of outsourcing. Cloud technologies do not represent a threat to the future of outsourcing. In fact, it further proves that the future of the software market is outsourcing, whether in its traditional form or as a cloud service model.


Why outsource to whole software developmentoutsourcing teams?

Numbers never lie. Outsourcing has proven its model to have less cost than having an in-house team. Since having an in-house developer, in reality, would cost your business about 2.7x the base salary of that one developer; imagine the collective cost of having a whole in-house development team! Outsourcing the whole development process, on the other hand, can reduce your development costs by up to 90% especially in North America and Western/Eastern Europe!

Flexible set of technical skills. The second most important point in why is outsourcing important good for your business and going to become the reality of the software market in a matter of few years is the amazing flexibility it offers in terms of having any set of skills in your development team. While maintaining an in-house development team means new hires with new salaries and added costs or at least additional training costs for the existing team members in case you wanted to use a new tool or utilize a new skill with your in-house development team, resorting to outsourcing in such a case means only that you would change the developers your outsourcing your projects to, to others who have the set of skills you need in the current phase, no additional charge!

You are a business owner; you should focus on your business.

The production process in any business is a part of the wider entity of the business itself. Granted that is an essential part, however, it is not the only thing there is to take care of when it comes to your perspective as a business leader and owner. With that being said, it is important to point out that managing the software development process can get very detailed, confusing, and exhaustive especially when combined with other business obligations. Many companies had good production processes and procedures and amazing software service, yet they failed to survive in the software market because of the lack of focus on the other important parts of the business process itself. These are the cases where outsourcing whole development teams become not only a “good option”, but the oxygen that gives your business the proper chance to live and survive. Having the ability to change the set of technical skills that are available in your business’s software development process is sufficient on its own to form the outsourcing decision. When added to the facts of the cost numbers and reliving your management from development-related organizational problems, you have the ultimate winner deal in the palm of your hand.

To be able to shift all that technical headache to a competent and less costly team and be free to focus on the core concern of your company, which is growing it and making sure it is going to make it big in that competitive market of software development is the answer and, definitely, the future solution the all the complicated challenges that is managing an in-house software development team.

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