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
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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.
Two other steps read on our website HERE.