Leveraging the Hybrid Outsourcing Model for Maximum Software Development Benefits

When it comes to building software, there are many factors to consider. Should you work with an in-house development team? An outsourcing provider? A freelance team? Another model altogether? Perhaps there is no one model that seems like it will take care of all of your technological needs.

But there is a way to have the best of all worlds: hybrid models. The hybrid outsourcing model means that you are blending multiple provider models—IT staff augmentation and software outsourcing services—to help you meet your business and technology goals. This format is ideal for many different types of projects, particularly complex, large, and multifaceted projects that have a lot of moving parts.

What is the hybrid outsourcing model all about? When should you use it? And how do you manage it effectively? Let’s take a closer look.

Understanding Hybrid Outsourcing Model

In software development, the hybrid outsourcing model blends multiple types or styles of outsourcing to achieve a balance between cost-effectiveness, quality, and collaboration.

There are many different forms this type of model can take. The most obvious example is blending your onshore, in-house model with the work of an external service provider. In this instance, one or more outsourcing teams will work together with your own team to complete the project successfully.

Alternatively, a business might partner with both nearshore and offshore software engineering teams—those located on the same continent and in completely different parts of the world respectively—to carry out different operations. This means that you are likely contending with teams in several different countries or even continents, which can be challenging but could likely mean a more successful project overall.

Or, an organization might leverage staff augmentation, in which members of the service provider’s team join the organization’s in-house team, and delivery teams to carry out more complex, involved, long-term projects.

The point is that the hybrid outsourcing model can mean a lot of different things and involve a number of different teams, organizations and processes. By blending these different pieces, you are better equipped to address your needs and ultimately meet your objectives.

In any case, hybrid outsourcing involves several key stages:

Identifying the needs of the client
Crafting and designing custom solutions that meet the business’ requirements
Creating a plan
Implementing services and meeting the needs of the client

Clients often find that they achieve the best results through a combination of outsourcing development solutions—even more so, in some cases, than when they leverage just one version.

Key Advantages of the Hybrid Model

The hybrid approach brings a number of key benefits to businesses looking for high-quality digital solutions. They include:

#1 Cost-Effectiveness

Typically, outsourcing deals mean lower costs in general. The hybrid approach can bring businesses even greater cost savings. For example, if you combine lower-cost offshore resources with higher-cost onshore resources, you will reap the rewards of quality and specialized skills without having to pay a substantial price.

The cost savings are even more substantial when you consider the flexibility of the model—or, rather, combination of models. You don’t need to pay for resources you’re not actually using at any point and can change the approach depending on your needs.

#2 Enhanced Collaboration

Collaboration is essential for all development projects—or any project in general. By combining local and remote teams, you can enhance collaboration with your service provider. Because your own development team will be involved in these efforts, too, you will be improving and boosting the connections between your team members and the outside team or teams.

Better collaboration also means stronger communication, which is critical for the overall development process.

#3 Scalability and Flexibility

The hybrid model offers scalability and flexibility, allowing you to expand your team and pool of resources, while simultaneously controlling costs. It is easy to add or reduce resources from different locations based on the needs of your project and/or your team members.

With more flexibility, you can streamline every relevent business process and ensure that you have right number of personnel, tools, and additional resources for the project. You can also continue to expand or reduce your talent pool depending on the different directions the project takes.

#4 Access to Global Talent Pool

Utilizing outsourcing providers in your projects means that you have access to a global pool of talent. But the hybrid model provides access to an even more diverse and skilled talent pool, and you can combine teams from different regions to bring your project to fruition.

With a multicultural team at your disposal, you are better able to leverage diverse skill sets and experiences. This is beneficial for team dynamics and leads to greater innovation and creativity, adding even more value to your team and end results.

Implementing Hybrid Outsourcing Model in Software Development Projects

How, then, do you implement a hybrid outsourcing model in your projects? Every organization is different, but these are the general steps to follow. Bear in mind that more standard, individual outsourcing models can work in many contexts, while the hybrid method may be more suitable for large, complex projects that have tight time constraints and demand a number of resources.

1. Define Project Requirements and Objectives

The first step of any development project is to define your project requirements, objectives, and goals. These specifications will dictate the course of your project, from selecting the outsourcing models you will be using to devising a course of action and plan to establishing roles and responsibilities.

These requirements must be clear and solid—there is no room for vagueness. To make sure that they are very specific and understandable, create requirements documents. These documents will be helpful for planning, as well as for helping get everyone on the same page.

When we set you should set goals, we mean that these goals must be realistic and attainable. Setting goals that are too lofty will lead to an unwieldy development process and roadmap, as well as disappointment down the road. Additionally, you may have trouble finding outsourcing partners who are willing to help you with you project because they may deem your goals overly ambitious or unrealistic.

Bear in mind that your outsourcing partners can help you solidify and further develop your goals, giving you their expert opinion as to whether they are achievable. However, you should still have some basic ideas of the overarching objectives your are looking to achieve.

2. Select the Right Combination of Outsourcing Models

This is the heart of the hybrid arrangement. At this point, you will need to determine which types of outsourcing models are the most appropriate for your business and your project. You should also think about the combination of onshore, nearshore, and offshore models that are the ideal fit for your team. Take into account the various factors that will influence the course of your project or projects.

Some items to consider when you are putting together your hybrid team are:

The complexity of the project at hand
The length of time you expect you will need to complete the project
Cost and budget
Time zone differences
Cultural differences
Communication requirements
The skill sets and qualifications you need
The strengths and weaknesses of your in-house team
Personal preferences

3. Assemble the Hybrid Team

In order to put your hybrid team together, you choose team members based on the above criteria. This process will usually mean that you are selecting professionals and even vendors from a number of different locations.

Of course, putting together the hybrid team is not the actual end of the assembly process. You will also need to manage and coordinate a multicultural team, one that includes individuals who speak different languages and live in different time zones.

As part of the process, you should make sure that the team members you select all have a working knowledge of English or your preferred language. This will reduce the chances of miscommunication and misunderstandings. Moreover, if you are not operating in the same or similar time zones, then you need to discuss when you are able to connect and how these interactions will occur. This is important for project management and project oversight.

4. Establish Communication and Collaboration Processes

Communication is a critical part of establishing a strong working relationship with your outsourcing partner. This is especially important when you are putting together a hybrid team because there are many different teams and players involved, and they are very likely coming from different parts of the world.

In order to have a successful means of communication and collaboration, you should detail your processes upfront. From the beginning of the relationship, confirm with your partner or partners how you expect to communicate. For example, determine which channels you will be using and for what purpose. Perhaps you will use Slack for touching base on a daily basis, for instance, while video conferencing platforms such as Zoom will be reserved for weekly meetings to ensure that everyone is on the same page.

While this is a bit more difficult, you should also determine the styles in which you would prefer to communicate and collaborate. This should be a process that takes into account the cultural norms and work behaviors of everyone involved. It is also important to discuss the frequency of your exchanges as well.

Conclusion

More and more businesses are working with outside organizations or individuals to achieve their goals, rather than exclusively relying on in-house, full-time employees. There are many different options to use, but the hybrid model is a flexible, efficient, cost-effective model for helping teams of all shapes and sizes meet their objectives and should certainly be on your radar.

The hybrid approach leverages a blend of outsourcing methods for building high-quality software and aiding organizations. It is especially successful when you are:

Lacking immediate, local talent or specialized skill sets
Developing large-scale, complex projects or initiatives
Dealing with time constraints
Need a high-quality product or service

If any one of the above circumstances applies to your business, chances are that you can benefit from a hybrid outsourcing approach—and reap enormous benefits.

If you enjoyed this article, be sure to check out some more outsourcing articles.

FAQ

What is the hybrid outsourcing model in software development?

The hybrid outsourcing model blends multiple types of outsourcing models to help organizations achieve their goals. They may involve a combination of onshore (teams within your own country), nearshore (teams in nearby countries), or offshore (teams in faraway countries) or different styles of outsourcing, such as delivery teams and staff augmentation.

How does the hybrid outsourcing model enhance collaboration in software development projects?

Collaboration is essential for complete software development projects. The hybrid outsourcing model combines local and remote teams to strengthen and improve collaboration. In this instance, people from different parts of the world are coming together to work on a project and bring it to completion.

What factors should be considered when selecting the right combination of outsourcing models?

In order to select the right combination of outsourcing models, you should consider several different factors such as:

Cost-effectiveness
Time zone differences
Cultural compatibility
Unique needs and requirements

There will be other factors you should consider based on the specific project and your business requirements.

How can I manage and coordinate a multicultural hybrid team?

Managing and coordinating a multicultural hybrid team can be difficult in an outsourcing context. It is important to understand and respect cultural differences, while also recognizing that there can be challenges that arise from these differences. To foster a positive team environment, you should establish clear communication and promote understanding across all teams and individuals involved.

What tools and strategies can facilitate seamless communication and collaboration in a hybrid outsourcing model?

In the hybrid outsourcing model, organizations can use a range of communication tools and techniques like project management platforms, video conferencing, and regular meetings. Establishing effective communication and collaboration processes within a hybrid team is important for keeping everyone up to date and progressing.