As a senior project manager in an ever-growing digital agency and the main go-to communication person when landing clients and/ or pitching projects I have had the pleasure to take
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 for 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 development outsourcing 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.
Get notifications every time when Jānis B. writes a new article!
Latest from the Netcore hub
Explore, comment and join the dicussions
It's no secret that development costs have risen over the last couple of years, markets are saturated, and it's getting harder and harder to find high-quality development partners. That's why
In business, good technology is not an option, but a must. Nowadays, it is technology that bridges the gap between people and possibilities. In our previous article, we have mentioned
Let’s face it, choosing a software development company to get your software application created isn’t the easiest thing ever. Some suppliers will intimidate you with technical jargon, hoping to project themselves
Custom e-commerce development vs open-source platforms With more than 4 billion internet users around the world, you know bringing e-commerce into your business is the right decision. The hard part is
Thanks to the inception of modern, cutting-edge technologies such as Enterprise Resource Planning(ERP) and Customer Relationship Management(CRM), managing large businesses is considerably much more comfortable than old times. However, industries
Setting an online store is not much of a big deal. You need the right tools, the right people, and the services to get any of your business ideas online,
As your business grows, there will be an increasing rate of IT issues that are plaguing daily operations. An unstable network, loss data and potential security breaches often brought business
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 for each of these options, and
Modern men are the busiest - this is something we all have to agree at some point or another. We live in a time where even putting some time aside
While it’s agreed that the lack of communication breaks a team apart, incorrect communications method also causes productivity to nosedive. Modern technologies have changed various aspects of a company’s operation,
Financial advantages of having an offshore development center (ODC) In previous articles, as we were covering outsourcing pricing guides and other outsourcing related topics; we quickly skimmed over the advantages of
Every business owner attempting to start a software development project will have this burning question, “should I hire an in-house team or outsource to an overseas agency?”. Unfortunately, there isn’t
Startups entrepreneurs and project managers often share the same dilemma when trying to turn software concept into actual applications that work. A team could be equally divided in opinions when
Be it a small business or a large enterprise, everyone wants to expand and enhance their customer database for marketing purposes. And, to do so, they need to collect the
As an e-commerce entity, you have noticed a drift in the behavior of your customers lately. More and more people are abandoning the cart? Have you assessed the situation? Do
You’ve heard how having a remote team can increase productivity significantly at work. And with the ease of connectivity, tools, and technology, you have every reason to allow your employee
Even the brightest employee could suffer a burn out when he or she is continuously engaged with work without taking sufficient breaks. An important skill to survive in a modern
After years of struggling with long commute hours, you’ve got your dream job where you could work remotely from home. The flexibility of being able to work without leaving your
Whether you're working for a full-fledged software firm or are just a lone dev, the deadline is something we all tend to worry about. Despite how talented or creative you
Small and medium companies are adopting the work-out-of-office policy at a rapid rate. It’s a growing trend that creates an attractive option for Gen-Y and millennial employees. But it’s also
One of the perks working with a modern software development team is the ability to work remotely from anywhere around the planet. You’ll expect that such flexibility naturally accounts for
It's not too long ago when developers were using dynamic languages such as PHP or C++ for enabling advanced features to their users that were impossible to implement with older
Programming, once a rhetorical way of aiding the computation of large and complex calculations, has taken over many different roles since its inception. Moreover, as we embrace technology in every
It doesn't matter whether you're trying for getting an app build or are learning the ins and outs of UX design, chances are you pretty often stumble with terms like
Almost all of us share our personal information - names, addresses, emails, etc. - with Google, Facebook and other websites. Confusing and lengthy terms and conditions make it harder for
Regardless of industry, modern companies are reliant on IT systems to various degrees. Some companies use CRM or similar solutions to manage day-to-day operations. Others depend on integrated software platforms
Ever had a software coded and deployed only to suffer multiple technical issues that take weeks to address? Many companies have suffered from poorly designed software and ended up suffering massive
Computer programming is the art of converting logic to actual work. Traditional programmers may disagree with us, but have you ever thought what the underlying purpose of programming is? From a
It would be a rather unfair comparison when pitting custom software with their off-the-shelf counterparts. Both possess pros and cons that may accelerate or hamper the growth of the business
It’s probably old news, but visuals are an increasingly important element in software design. Whether it’s a responsive website, mobile app or a custom application, the days where uninspiring images
Long gone the days when we needed to rely on bulky software's and cumbersome browser extensions to achieve anything close to a real-time conversation. Many of us, who used the
Modern enterprises rely on electronic devices and solutions much more than you can anticipate. Even a few hours of system disruptions can lead to a severe decrease in productivity. All
You may have a great idea for a product that you think might solve people’s problems but are afraid to execute it due to a lot of time and money
Banks and Finance institutions are the real powerhouses of a nation. In this time of wide-spread international tradings and industrial collaborations, organizations need to be efficient, yet co-operative. Regulations like
Attempting to deploy an untested software is courting catastrophic disaster for your company. But if your software team claims that it’s undergone sufficient testing and yet you’re facing a barrage
If you’re not using Slack, you’re missing out big time. At least, that’s what other developers, marketers, and professionals are raving about. There’s no denying that Slack puts an end
If you’re part of a remote team, you may have found that Slack has replaced email as the preferred channel of communication between co-workers. It allows information sharing to be
A Detailed Study into Gulp and Webpack: When and Why? I can remember the first time, back when I was a junior web developer, somebody said to me “run a build
Improve Your Business With IT System Support and Maintenance The truth is, with the digital era on the rise, the strength of one's IT systems may make or break the business.
If I would guess and predict you're reading this post from your mobile phone instead of a desktop/laptop, what is the chance of me being wrong? I can say with
R&D centers are the core of every industry. They focus on researching and developing new tools and strategies that can help people advance in a field. It takes time, effort,
Well, hey there! Searching for CRMs are you? Well then in this case, I’m guessing that you either think that you need a CRM for managing your business and its
In order for an e-commerce platform to be successful, companies have to take a multi-disciplinary approach to optimization. With a mix of marketing, logistics, UX design, and savvy web development,
If you’ve been holding hours of meeting with your team and fail to reach a consensus on whether to invest in customer software or not, we’re more than ready to
Are you one of the incredibly active business owners who never settle? Do you get a new idea for a new unique project every single hour or two? Does time
Are you looking to have more organized and coordinated operations in your business? Is your firm taking a turn you are not happy with, in regards to customer relations and
Developing desktop applications can be full of challenges that make it hard to approach if you don't have the matching knowledge base of a CS graduate. To understand the ins
The development of Enterprise Resource Planning (ERP) system has continued to evolve since 2004 according to Mark Krake, Engineer and Software developer. The requirements vary among user companies as demand
Recruitment is about putting the right people into your team. But when it comes to hiring software developers, it could be a tall order. With software developers often classified into
Want to see more?
Check out netcore blog
LGain insight into the world of Netcore by visiting
our HUB. Subscribe to our newsletter and don't
miss any updates!