When you are looking to build or improve your technology, the software development process can seem daunting. Fortunately, there is a solution to help you: software outsourcing.
This is a broad term describing several different models. The common thread is that you are working with an outside team or company to complete a single project or a variety of technology projects. The right outsourcing model depends on your unique needs and requirements, as well as additional factors like your timeline, budget, and more.
At BairesDev, we offer three major software development outsourcing models:
- Delivery Team Model
- Staff Augmentation
- Dedicated Software Development Team
What do these models entail? And which one is right for you? Here, we will unpack the different types of software development outsourcing models and look at the pros and cons of each.
Factors to Consider When Choosing a Software Development Outsourcing Model
When undertaking any software development outsourcing project or arrangement, there are several different factors that you should consider. These factors include:
- Project scope and complexity
- Type of development process and methodology
- Your compatibility with the outsourcing company
- Your desired style of management and level of control
- Timeframe for the project
- Your in-house team’s skill sets and expertise
- The resources you have in-house
- Budget and cost
Of course, there will be additional factors you will consider depending on your own needs and requirements.
Delivery Team Model
A delivery team model is in which the software developers are assembled by a software development outsourcing provider to deliver high-quality technological expertise that adds value to your project and business. This model is particularly well suited to projects that require complete management from the outsourcing partner. Typically, businesses with limited internal resources and capacity opt for this approach.
With this model, it is the responsibility of the outsourcing partner to provide the client with technology experts for all the roles required to make up a dedicated development team. These positions can include project managers, software developers, quality assurance (QA) engineers, and any other roles necessary to complete a project.
In addition to building the team, the outsourcing provider also takes care of people management, everyday task management, and process quality.
Typically, delivery teams work autonomously and have regular contact with the client, providing status updates as often as requested. At BairesDev, all of our delivery teams use Agile methodologies, which rely heavily on client feedback and communication in order to help shape and influence design and functionality. In this project-based model, you have a great deal of input and are ultimately able to have control, even when you are not directly managing the process.
Core Benefits
There are many benefits to the delivery team model. These are the chief advantages.
- Adds value immediately
Delivery teams are assembled quickly and are independently managed by the outsourcing provider to implement and execute the project to a high standard. The client has access to a highly skilled team of experienced professionals that don’t require any further training.
- Streamlined project and team management
Delivery teams increase capacity and reduce the burden on the client by taking responsibility for a project. According to Deloitte’s Global Outsourcing Survey, 47% of companies outsource to solve capacity issues.
- Remain in control
While outsourcing vendors are responsible for the day-to-day running of a project, overall control and major decisions still remain with the client and their team.
- Access to top tech talent
Companies benefit from having access to worldwide developer talent around the clock. BairesDev has a continual hiring process to provide immediate access to the best developers around the world.
IT Staff Augmentation
The IT staff augmentation outsourcing model is essentially an extended team model. The outsourcing company brings in vetted professionals to work alongside the in-house team. This is ideal for teams that need additional talent or specialized skill sets to complete projects. It is also a highly flexible model that can be applied to a wide range of projects and can be scaled up or down depending on the needs and requirements of the in-house team.
In this model, the outsourced team members do everything the in-house team members do, including reporting to your own managers and attending meetings and check-ins regularly.
When to Choose IT Staff Augmentation
Staff augmentation is an ideal solution for short-term projects where you need specific expertise and specialized skill sets. It is also a helpful model for when your project demands flexibility in terms of team size and scalability.
Pros and Cons of IT Staff Augmentation
There are many benefits and drawbacks to the staff augmentation model. On the pro side, the model is cost-effective, flexible, and efficient. It also gives businesses access to a global pool of talent.
On the other hand, there are some disadvantages to consider. For example, you may encounter time zone differences and potential communication issues. In some cases, you may feel that you have limited control over outsourced employees. To mitigate these challenges, you should establish strong communication and collaboration methods and channels early on, as well as discuss how you will both manage and oversee the project as a team.
Dedicated Teams
In the dedicated team model, an outside software development team facilitates the entire development process from start to finish.
The team works as an autonomous group of specialists, including software developers, engineers, product managers, UX designers, and more. It is fully dedicated to managing the software development process of an organization.
That means that your business is better equipped to leverage the necessary resources and talent to meet your goals and objectives while also overcoming obstacles.
When to Choose Dedicated Teams
The dedicated team model is most appropriate for long-term projects, where you need a full-time commitment from the outsourced team. It is also ideal when you have the desire for a more integrated working relationship, as opposed to separate teams working independently.
Pros and Cons of Dedicated Teams
The main advantages of the dedicated team model are:
- Increased control
- Better communication
- Higher commitment
Meanwhile, the drawbacks of this model include:
- Higher costs
- Potential cultural differences
- Longer ramp-up time
Outsourced Development Services
Ultimately, IT outsourcing encompasses all of these models and can be beneficial to a number of different companies, no matter what their industry or niches.
Whether you need extra professionals to right-size your team or want your project to be completed from start to finish by an external organization with the ideal expertise, outsourcing can provide a solution that works for you.
This is not only a cost-effective solution, but it also brings you talent you may not be able to find within your immediate area or even your country. Different models are ideal for both long- and short-term projects and can be scaled accordingly.
Just some of the niches we can assist with include:
- Cybersecurity
- Cloud computing solutions
- Internet of Things (IoT)
- Data science
- Blockchain consulting
We also have a number of different types of specialists to help you, such as:
- Software engineers and developers
- User experience (UX) designers
- Project managers
- Product managers
- Quality assurance (QA) engineers
Whatever outsourcing model you select, your partner will assist you with your processes and bring dedication and unique skill sets to your team to assist you with a single project or an ongoing one.
When to Choose Outsourced Development Services
Outsourced development services are ideal for a variety of contexts. Some situations where you should consider outsourcing software development are:
- You need time to focus on your core business
- You are lacking the necessary skill sets and expertise in your in-house team
- You need a one-stop solution for your software development project
- You have limited resources within your organization
- You are grappling with time constraints and need your software development project to be completed quickly
These are just some of the context when you should consider software development outsourcing. Your decision depends on a variety of considerations and contexts, as well as your individual needs.
Pros and Cons of Outsourced Development Services
What are the benefits and drawbacks of outsourced development? Pros include:
- End-to-end services
- Reduced management overhead
- Access to a diverse range of skill sets
Cons include:
- Less control of your project
- Potential communication challenges
- Lack of oversight
Software Outsourcing Regions
In addition to choosing the most effective outsourcing model, companies should also consider where to outsource their development. Every region has its developer expertise and price points. Generally speaking, there are two broad options when it comes to outsourcing regions: nearshore and offshore.
Nearshore outsourcing is when a company decides to have their development project completed by an outsourcing partner in a neighboring country. For example, BairesDev operates in a number of regions, although we originally operated mainly in Latin America and continue to partner regularly with US and North American companies, such as ViacomCBS and Google.
Offshore outsourcing takes place when a company uses an external team in a location that is geographically distant from their headquarters. For example, a US company might outsource to India. However, in recent times, more companies are partnering with outsourcing providers closer to home to capture the benefits of nearshoring, which include timezone compatibility and closer cultural fits, as well as reduced language barriers
BairesDev assists its clients by setting up nearshore development centers and overseeing their operations. The company also provides the resources necessary to ensure the smooth completion of a development cycle.
Once you have decided on the most effective software outsourcing model for your project, the next step is to consider how you will outsource. In order to ensure a project progresses smoothly, we recommend following these 3 steps when outsourcing:
- Evaluate Your Team’s Skills
- Verify the Quality of Outsourcing Companies
- Implement Workflow Processes
Choosing the most effective outsourcing model requires some research. By considering the exact specifications of your project, you can determine what skills you need to outsource and what model will deliver the most effective results.
How To Choose the Right Outsourcing Partner
Choosing the best outsourcing partner for your business depends on numerous factors. In general, these are the steps you should follow when you outsource software development:
- Determine your needs, goals, and requirements.
- Establish which model is the best choice to fulfill your technological needs.
- Research different outsourcing models and vendor to evaluate their qualifications.
- Discuss the project requirements and goals with your top picks.
- Solidify your partnership with your top choice.
- Begin planning the project and kick it off—together.
Conclusion
Software development outsourcing can bring businesses of all types a number of advantages, helping improve efficiency, cost-effectiveness, and overall product quality. There are many options to choose from when it comes to the different outsourcing models you have available to you.
In order to choose the right one, business leaders should carefully evaluate their needs and options, taking into account the nature of your project and what you’re looking for. Ultimately, this will help you build a strong partnership.
If you enjoyed this article, be sure to check out some more outsourcing articles.
- 5 Signs It’s the Right Time to Outsource Your Software Development
- Types of Contracts You Should Consider to Outsource Software Development
- 7 Reasons Why You Should Consider Outsourcing SaaS Development
- The Best Guide for Outsourcing IT Projects
FAQ
What are the main software outsourcing models?
The three main software outsourcing models are IT staff augmentation, delivery teams, and dedicated teams. The models all operate differently and offer various benefits and drawbacks. The choice for your business depends on a number of factors, including the specific project, requirements, budget, and more.
How do I decide which software outsourcing model is best for my company?
To decide which software outsourcing model is best for your company, you should consider factors such as your own in-house staff and skill sets, the resources you’re able to delegate to the project, your communication channels, the scope of the project, budget, timeframe, and more.
What are some potential challenges of software outsourcing?
While there are plenty of advantages to software outsourcing, there are also some challenges. These challenges include communication problems, cultural differences, limited management and oversight, and time zone differences. In order to mitigate these challenges, businesses should research the provider and select the one that has a strong reputation and fit with your company.
