Best Countries to Outsource Software Development Do you know that the entire market size of outsourcing services was$88.9 billion last year? This is one of the most popular remote hiring models that are the best suited for IT because of the high demand for skilled tech professionals.
City leaders perceive innovation as a compulsory mindset to solve existing challenges. A significant appearance of dedicated teams has already changed the way how businessmen run their businesses and brought new rules to the market.
Agile, agile and one more time agile. Enterprises are succeeding with flexible software solutions in 2019 and the upcoming 2020 year. To achieve good results in multiple business and product groups, they need to rethink foundational strategies and relationships.
What companies may take advantage of remote employees
The dedicated team model is relevant for the customers who don’t want to deal with the complexity and all pitfalls of software development. It is a good choice for those who want to free up themselves from the tricky issues.
- Companies with an urgent need to complete a specific task without having to defocus in-house team.
- Dynamic organizations with a permanent hiring need for their fast-changing projects.
- Enterprises that require rare expertise, especially with a limited budget.
Benefits of Dedicated Team Model
To stand out among competitors, many companies are willing to outsource IT functions because of lack of experienced IT staff to handle complex tasks. Eastern and Western Europe offer affordable prices that make collaboration very attractive.
Related article: Best countries to outsource software development
Let’s consider the advantages of a dedicated team:
- Cost-effective solution.
- Global partnership.
- Weekly/monthly reports.
- Daily interaction.
- Highly scalable and flexible resourcing.
- Multicultural work environment.
- Faster response to clients’ needs.
- Extended workday.
- The project scope may be changed according to your needs.
- Ability to fit your limited budget.
- Alignment with your business strategy.
- There is no need to set clear specifications. All requirements may be created within the process by in-house and offshore teams.
- A dedicated team is involved in your specific software development and may be perceived as enlargement of your IT department.
- The agile approach means that you can adjust conditions.
- The dedicated team model brings transparency and visibility to the projects.
- A chance to pick the best-dedicated developers from the international pool of talents and monitor their work.
- Skilled dedicated project managers can achieve a highly-efficient workflow.
- This is a common practice of fruitful collaboration between the internal employees and the offshore team.
- Variety of channels to build meaningful relationships without any communication difficulties.
- Opportunity to grow or decrease your project when it’s necessary.
- The dedicated team is fully concentrated on one project, besides, the IT specialists may become a part of the client’s company for some time.
- Easy collaboration through such tools like Trello, Basecamp, Atlassian JIRA, Slack, etc.
- Time savings. In the USA, an organization can spend weeks or months to search and hire the best full-stack programmers. The main reason is high competitiveness among companies and tech giants, like Amazon, Facebook, Google, and Microsoft that hunt the best IT staff.
- Decreased TCO of a remote team because you pay only for the actual hours required to complete a task.
- Structured workflows because you hire an experienced team with permanent tracking progress monitoring at the same time.
- Quick replacement if an employee takes sick leave or quits.
- Detailed product documentation for the fast onboarding of new team members. It helps to refine visibility and clearness on progress.
- Eliminating artificial dependencies between the projects.
- Decreasing compelled administrative overhead.
- Lowering context-switching overwhelming of an in-house team.
- Refining domain knowledge.
- Growing team unity.
Major Challenges of Dedicated Project Team and How to Eliminate Them
The customer has to know that developing a new product or IT service is a repeating process when development involves a few numbers of stages. That’s why some clients may be stuck to create meaningful products. Besides, most challenges appear through the lack of valuable experience and everything is easy to fix with a deep knowledge of how to build needed cooperation.
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Let’s consider all drawbacks of hiring offshoring software development company that may occur through your first experience.
- Vague product development costs that make financial planning pretty hard.
- Possible time-consuming communication with new team members.
- Some companies believe that this cooperation isn’t a good fit for short-term projects.
- Cultural differences.
- Team motivation is harder to achieve.
- Time zones may be challenging issue for your cooperation.
The dedicated team approach in IT industry is more common practice for long-term projects with needed transparency and control over the processes. Their pricing model can meet your needs if the desired project is hard to analyze and predict future changes.
An outsourcing software development company has many advantages but it isn’t a panacea for all challenges and goals. To choose the appropriate solution, study information about pricing models, what remote team offers you and whether it matches your expectations.
Now, let’s switch our attention to the ways how to deal with possible troubles and make use of your global partnership.
First of all, implement analytics tools to track return on investment. It will help you to ensure that you spent your money wisely and this cooperation is well worth the expenses.
Then, compare your virtual management with the leadership of global tech leaders. Such analysis will help you to spot a room for refinement. There are a lot of articles out there and possible business tours, seminars, conferences for knowledge sharing.
Thirdly, invest time and efforts in growth opportunities. For instance, implement big data strategies becoming a source of growth for many businesses, now is a good time to incorporate it into your strategy. Moreover, it’s possible to partner with outsourcing dedicated project team with a significant experience in cooperating with the global famous companies.
One more way to establish a needed level of cooperation is boosting knowledge flows. Two-way communication between in-house team and software development company will bring you success and fulfill employee gaps. You can pay attention to how you can develop your remote team and gain new expertise from them as well. So, it’s important to stay informed about strengths and drawbacks of your teams. Such observation will bring you a vision about possible resources of new knowledge among your team members. Many companies believe that building right communication funnel is number one issue.
Knowledge transfer helps to refresh your business strategy and recognize each team member as a leader and influencer. Emphasize the benefits of dedicated teams, and make sure that all team members have all resources for it. Many companies see great results from insights gained from the cross-staffing. Online forums may be a great platform for such meeting. According to the Ovum report, up to 85% of respondents said using new tech tools for collaboration helps to achieve mutual understanding and refine customer experience.
Experts advise implementing meritocratic team management approaches to improve resource allocation. Another approach is innovative disruptions, as Mark Zuckerberg says, move fast and break things. It means to change the way you used to handle things and try new approaches, experiment and test innovative ideas. Disruption is the reality of the IT industry nowadays, and high-tech decision-makers search for new advantages.
Besides, it’s important to stay client-oriented company and build software with customers’ needs in mind. Pay attention to required quality control so your global teams may produce products or services that meet expectations.
Set clear goals and boost motivation are very important in IT area with the highest turnover among various industries. A young generation of IT specialists wants to grow at work, acquire new skills and unpack significant opportunities.
The key to retaining your employees is a healthy corporate environment and friendly atmosphere. By identifying motivation of your staff, you can make each team member feel secure and appreciated. The best strategy for talent acquisition involves easy communication, work-life balance, social benefits, self-development.
For example, CarMax worked on the employee program in hard times with bonuses and extra perks, development plan and feedback. It helped the company to refine sales up to 120% in next few years.
Researches showed that outsourcing may work as great retention strategy as well. All the legal responsibility covers outsourcing service provider which gives you flexibility in developing teams according to your expectations.
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In order to eliminate possible setbacks of outsourcing, you need to carefully evaluate the scope of the project and create a list of professionals that are required. Separate the roles that may be filled in-house, and which ones will demand outside expertise. These vacancies should involve detailed descriptions to clear things up. Craft it involving the required number of hours for each role.
Once you have created the job description, look for the reliable software development company.
When you start cooperating with a specific IT provider, set a task to present employees who will best address your needs. Moreover, feel free to interview them as well to find not only a skilled tech specialist but a cultural fit also.
Then, create a preliminary contract to specify the expectations for the roles and needed outcomes. Include salaries and other software development cost, based on the discussed issues. Also, involve the desired scope of the project and provisions for scaling.
Finishing the contract is the final formal step in the workflow to build a dedicated team. But the informal processes require further monitoring and support. That’s why you need to ensure that every employee, in-house or remote, is engaged.
So, now you know what is dedicated team, pros and cons of dedicated teams and how to lead this cooperation.
Adopt a Product-Oriented Organizational Structure
The way your company is structured affects how you handle and run projects. If you wonder about the disadvantages and advantages of dedicated project teams, organize IT resources around products to achieve the best results. Your end-to-end teams need to pay attention to reaching business results.
In an agile-at-scale environment, products aren’t just commercial offerings. They can be a mix of offerings or services or an IT system shared by multiple product teams. So the company and tech leaders need to identify the units of delivery. And once your end products have been recognized, the company needs to define an agile team that will work on software development and maintenance.
In product-oriented organizational structure, planning is the first stage. It includes a strategic vision, and the next stage organizing shows how the organization will allocate resources to reach the goals. Leading requires activities to stimulate employees, and control is needed to ensure that you move towards achieving business goals.
The dedicated team structure is a valuable category of management functions. The project-oriented structure is a good fit for cross-functional cooperation. Employees report directly to a team lead or project manager. The dedicated teams bring additional advantages to completing urgent and complex tasks.
Besides, this structure helps to ensure a high degree of productivity. All goals are aligned with the entire business strategy, and decision-making becomes more efficient. And the greatest gain of the project-oriented structure is the cross-functional engagement of each employee. It leads to higher creativity, integrated work activities, and needed problem-solving.
The obvious benefit of a project structure is more control over the dedicated teams and a strong sense of identity. This structure is well-suited to build a strong team culture, especially from employees all over the world.
All resources are dedicated to the project, so it’s simpler to schedule it. You’ll see when your employees are available.
So, running a business nowadays is a quite challenging task that requires some new ways to improve quality and reduce costs. The global practice is outsourcing that helps to broaden your pool of talents and capture the best tech specialists. Such cooperation brings many advantages to your organization involving time-saving, highly scalable and flexible resourcing, diverse work environment, etc.
Some organizations face challenges to make use of remote team but it’s only because they don’t know how to manage the process. Talent acquisition strategy, a product-oriented structure, and relevant pre-planning help to avoid possible fails.