1. What is outsourcing? The model of outsourcing
There are so many talks about outsourcing nowadays. Especially in these new conditions. It is time to figure out what it is and how it can help your business. Spoiler alert: it can help a lot to reduce custom software development costs keeping the highest quality level. So, let’s take a closer look.
Outsourcing, in its essence, means engagement of the third party for certain business tasks or processes completion with minimal cost, effort, and investment. Quick and efficient processes, overhead expenses reduction, tools, and knowledge spheres widening are some of the components of true outsourcing nowadays.
A dedicated project manager serves as a mediator between a client and a remote team to ensure all the requirements are taken into close consideration and the development process runs smoothly and properly. What is more, the manager is responsible for the atmosphere around the project outsourced and the mutual understanding between the customer and the team. So, you can be sure if you had any doubts about managing the project remotely. Everything works great with a good skilled dedicated manager.
2. Five reasons to outsource
Why outsource? A decision to delegate is clearly a demonstration of lack of knowledge and/or expertise. On the contrary, every well thought and balanced decision to outsource is a sign of professionalism and business running understanding.
The benefits of outsourcing are the following:
- Access to a wider sector of worldwide capabilities, tool, and other resources
- Control and decrease of the operational and overhead expenses
- Accelerated business processes
- Better use of external and internal resources
- Distributing risks with the partnering company
- And much more
Outsourcing software development is a good thing when you feel a necessity of third-party assistance with tech support, development processes, or issues needing better understanding and more skills. What is more, software development outsourcing is a good way to get professional assistance for a reasonable cost.
3. How to choose the right cooperation type of contract?
There exist three key outsourcing contracts/pricing models: Fixed Prices, Time and Material (T&M), and Dedicated Team (DT).
Fixed Price is perfect for short-term projects, which are easy to estimate and plan in advance. Everything is handled by the project manager with a minimal client’s engagement.
If you envision a long-term project, which is hard to pre-evaluate, you had better choose Time and Material scheme. It is quite flexible to allow ongoing project modifications and amendments with hourly payment.
Finally, if you are in for personal project management and control, complex product development, flexibility, and long-term cooperation the Dedicated Team pricing model is for you.
Please note: you can always contact our managers here in Agiliway for free consultation to choose the right model just for your case.
4. The pros and cons of outsourcing IT services
IT services outsourcing is a sector with its advantages and disadvantages a client should be familiar with before the cooperation starts.
What about the pros?
- Greater expertise (wider pool of potential workers available globally and, consequently, more skills and higher working quality)
- Lower costs (no need in training, insurances, sick days payments, team buildings, overhead costs decrease, etc.)
- Increased security and improved equipment along with free internal resources access
- More time to focus on your core business tasks and processes
The cons existing are obvious as well:
- Less control of the off-site team compared to the on-site one (nevertheless, proper outsourcing partner will do everything to ensure the maximum transparency and control)
- A gap of quality expectations (careful investigation in the outsourcing company’s previous experience and your relevant requirements will definitely help to prevent the possible gap mentioned)
- Communication issues (a wide range of communication platforms allow the customer to keep in touch with the remote team effectively and anytime)
5. How to find the best outsourcing company?
The task is highly challenging as well as time- and effort-consuming. There are three main points every outsourcing company should stand up to be preferred:
- Relevant domain and technical expertise
- Reasonable budgeting
According to a number of investigations and research done in the field of outsourcing, certain offshore development software teams, in Eastern Europe mainly, are believed to be the best options due to good expertise, acceptable time zone differences, mentality and a rich pool of professionals suggested.
6. What would be the best for you?
Once you made up your mind to delegate some part of your tasks/duties, you are bound to meet the challenge of choosing between an outstaffing company or an outsourcing agency. How to make a proper choice? What factors should be taken into close consideration for the final decision to serve best?
The answer is simple: if you feel a dramatic lack of tech support and skills along with tools and equipment needed, choose the outsourcing company. It will provide you with a dedicated team of engineers to do everything for you.
However, if you have a well-structured and knowledgeable team with experienced managers and modern equipment, your final decision may be in favor of the outstaffing option. So, take your time and think twice. The decision you will make is well worth it.
Agiliway: Your Choice to Make
Agiliway is an outsourcing company with solid expertise and profound experience in the field, has been founded and is managed by IT experts from US and Ukraine with more than 20 years of industry experience each. We are open to either hiring or consulting services merely. More than 100 successfully completed projects, 35 on-going long-term projects, clients from more than ten geographical locations and, consequently, different time zones, and much more speak for itself.
Our team, managers and administration have all the necessary tools and skills to provide the highest quality outsourced tasks and are always ready to discuss and develop new ideas while sticking to the most relative quality-cost balance.