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Choose a Dedicated Team Model Over Traditional Outsourcing for Long-term Cooperation

Published: May 29, 2018
Choose a Dedicated Team Model Over Traditional Outsourcing for Long-term Cooperation

In a scenario where the Independent Software Vendors (ISVs) are blessed with great products, have you ever wondered why they still struggle hard for success? It’s mostly that they are struggling to stay at par and up to date with the changing technology. They must work on strategies that enable them to quickly switch to the cloud and SaaS and build from there. After all, when it comes to making the right choice in business, they need to consider the long-term effects that their choice will have on the ability to compete years down the road. For a better investment, nothing could be better than cloud computing.

Anup VP – Sales & Marketing

When switching to cloud computing, ISVs are making the hard choice and putting a lot of effort into strategizing on social media and mobility to give the best user experience. Social media and mobility has helped companies take ideal steps into evolving their digital world. This strategy has the ability to make marketing investments more cost-effective. In addition, since they need to deliver seamless and non-disruptive experiences to the end users in order to meet the challenges of security breaches, ISVs face many challenges that are unique to their business.

With traditional IT outsourcing, one of the former predominant trends in the IT industry, the pendulum is shifting away from it and heading in a new direction of IT outsourcing. Often, ISVs are reluctant to change their current business model due to the lack of an overall architecture for integration of services and the current evolution. They also feel that they may be at a higher risk of exposing confidential data to a third party with any type of outsourcing since an outsourced vendor tends to cater to the expertise needs of multiple organizations at a time. They might be lacking the required focus on the tasks.

In a situation where ISVs are less inclined towards using IT outsourcing, a widely used outsourcing model called “dedicated team” can be considered. Right from the start, from operations and priorities to key strategic planning, the customer can have full control over it. Additionally, the customer can make better choices overall, thus getting a much higher level of flexibility. It starts with allowing the customer to actively participate in choosing team members. Unlike traditional IT outsourcing where you will have to loosen your pocket, hiring a dedicated team will enable you to cut down on your expenses. Overall, a dedicated team will serve as a virtually integrated team that will be highly committed towards the success of your company.

Have a Closer Look at the Advantages of Hiring a Dedicated Team as Compared to Traditional IT Outsourcing

Being innovative and capable

If you are looking for a team of highly qualified people who can work as your offshore employees at a very affordable cost, you can’t do better than hiring a dedicated team. It involves the required functional team members who will give you the liberty to concentrate more on your business. Being highly innovative, they are at your dedicated service for as long as you need them. On the contrary, the traditional outsourcing model comes with the low level of task-based reactive output, with back and forth communications required, thus leaving no place for innovation.

Expect business value

You can expect long-term business value through the accumulated expertise of a dedicated team. Undeniably, they are highly committed towards your project needs and methodology. With an IT outsourcing model, it involves a low and very basic staff augmentation mode.

Mitigation to risk

A dedicated team model is a pro at mitigating risks, such as loss of control or knowledge, problems with the morale of the employees and quality of the product. On the contrary, it is very difficult to manage risks in an IT outsourcing model due to the lack of visibility into the service providers processes.

Cost effectiveness

Hiring a dedicated team is quite lucrative as it is just a fraction of cost and the team will be solely responsible for hiring and onboarding the specialists they need. With IT outsourcing, you will spend more money.

Time to market

Where the dedicated team ensures a lesser time to market due to the ability of the customer in full control of the team and workflow, the IT outsourcing model reflects an uncertain time to market.

All about flexibility

You can expect greater flexibility with a dedicated team as it works per the requirements of the customer and can change when the business dynamics change. Whereas, rigid flexibility can be expected of IT outsourcing as it demands a clearly defined scope from the customer.

Team composition

A dedicated team is controlled by the customer starting right at the recruitment process, whereas IT outsourcing involves a service provider to dictate tasks.

The dedicated team model is widely used in the world of outsourcing. You just need to create a healthy culture to make your team successful.

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