What are Software Development Outsourcing

There are two main pillars of any successful company. One of them is the vision of the company and the next is execution. It doesn’t matter how good the vision is if it is not executed properly. The same happens on the other side too. If the vision is not good, there are fewer chances of the company being successful.

Outsourcing is one of the major components when you are working as a software development company. It’s always better to outsource the work from some company and get the final word done with the help of them.

Now, there are various models for software development outsourcing. If we say the same thing in simpler words, there are various ways of outsourcing. These are called specific models. One can use any model as per the requirements.

Project-Based Outsourcing

One of the most popular and common software development outsourcing models that people use is project-based outsourcing. If you have a small project to complete and you mostly care about the results, this is the best model for you.

Here, you can pass over the requirements to the outsourcing company. The outsourcing company will analyze the requirements and give you a quotation. You can accept the offer and the team will start working on the project. Once the project is completed, the company will submit the final project. You can review it and accept the delivery. That’s the most common type of outsourcing for most small-businesses and small projects.

The advantages and disadvantages are the same here. You are passing on the complete responsibilities to the other company. For small projects, it’s super-efficient and affordable as you are not wasting your time and you will get the final project.

However, for big projects, you might require proper team management or a dedicated team. Depending on the requirements, one can choose the model if they want.

Not to mention, the pricing is also project-based. You will only have to pay for the project you are outsourcing.

Staff Augmentation

Staff Augmentation is an outsourcing model where you can outsource the staff. In simpler words, the outsourcing provider will arrange a team for you as well as they will provide the working place.

The rest of the things are controlled by you and the client. Here, the client plays an important role. For example, the client will define the project and also control the work. This is highly recommended if you want the client to take responsibility.

All the things are defined by the client and the client controls the work. The outsourcing provider will make sure that the team is working properly and the place has no issues. You work as a middleman here. As you just need to provide the proper staff details to the clients which you will get from the outsourcing provider.

In the end, the client will manage the team and you are technically free from the headache. Last but not the least, you will still make enough revenue from the project as generally, the outsourcing provider’s name is hidden.

This type of model works when there is a huge work that will last for years. The requirements of the clients are fixed and they want to work for the long term. In this case, you can surely work on such a deal. This will allow you to work with other clients along with maintaining the current client. Usually, there is very little chance that a small business will have to deal with this. That’s why they can use the next outsourcing model that is for a dedicated team.

Dedicated Team

As the name says, it’s the process of outsourcing and getting a dedicated team to work on the client’s project. The team is provided and managed by the outsourcing provider whereas the client will handle the definition and rest of the things. In simpler words, the outsourcing provider and the client will have to deal with the entire project.

Management mostly includes things like task management and the quality of the process. The outsourcing company will build a team for you depending on the skills you require and also manage them for you. Whereas, the client will give the definition, and half of the management will be done by them.

It’s similar to staff augmentation. The only difference is that here the outsourcing provider will also manage the team for you which is not done in staff augmentation. If you don’t want your client to handle all the responsibilities, you can surely outsource based on this model. In return, you can surely take extra charges from the client for the same thing.

Even the outsourcing provider knows about the project and will manage the reports and project status on behalf of your client. In this way, the entire project will do successfully as the outsourcing provider has experience in managing and handling the team. For non-technical clients, it’s better to choose a dedicated team rather than staff augmentation as you are taking out the responsibilities of the client and giving them to the provider. In the end, this will make the project more efficient.

Even though the team is managed by the provider, the project-based decisions and management is done by the client. It becomes complex when the client is not the one who is managing the team. If the client has their outsourced team which is amazing the project, it becomes more time consuming and sometimes complex too. However, that’s not your decision to make.

Final Words

To conclude, these are some of the outsourcing models that people work on. Depending on the requirements, you can surely choose one and get the work outsourced from an outsourcing company. The choice will depend on the client’s requirements and budget. You also need to consider the outsourcing provider’s charges before making a final decision.

If you are looking for any of the three outsourcing services, our team will be happy to guide you further.