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Spending on outsourcing services has grown in the last two decades, with an increase in companies buying-into the model – either through staff augmentation, remote employees, or a dedicated remote development team.
As a result of this surge, many businesses throughout the world have begun to take advantage of outsourcing’s potential for commercial growth.
This ongoing trend has hastened process changes and improved tools and technology, giving businesses a competitive advantage. However, the emphasis has evolved from traditional outsourcing to disruptive outsourcing, which provides a wide range of services.
For the layman, that means managed services and a dedicated team instead of a sweatshop or freelancer tryouts.
However, many businesses are still undecided about choosing a dedicated team model (a form of disruptive outsourcing) or traditional outsourcing. Here’s a quick rundown on it to assist businesses to choose the proper one.
Dedicated Team Model Over Traditional Outsourcing: Disruptive Outsourcing is the New Trend
First the difference.
Traditional outsourcing is sending development assignments to a sweatshop of fresh-faced developers.
Whereas, Dedicated Development Team model is a managed service where you can access engineers, programmers, business analysts, and project managers.
Now to the context.
Organizations are changing.
Increasingly, most firms are considering the potential of hiring a team of remote developers, an offshore development center, or even extending their existing teams through staff augmentation.
The reason is pretty clear.
Beat attrition, Be flexible, Expand hiring horizons.
+ Firms are also looking to bring on-demand flexibility in scaling a team of their choice – on any tech stack and of any experience.
Firms are struggling to stay updated with the changing technology.
They must work on strategies that enable them to quickly switch to the different stacks without bringing hiring, and recruitment hassles.
On this note, alternate talent solutions like hiring a Dedicated Development team enables businesses to operate smarter, scale faster, expand into new markets, boost productivity, and gain a competitive advantage.
Additionally, this model curtails the disadvantages of traditional outsourcing – that of broken control, lack of milestones and direction, as well as loss of time and money.
A Shift From Traditional IT Outsourcing to Dedicated Team Model
Often, firms are reluctant to change their current business model due to the lack of an overall architecture for the integration of services. They also feel that they may be at a higher risk of exposing confidential data to a third party (dedicated team) since an outsourced vendor tends to cater to the development needs of multiple organizations at a time.
In a situation where software enterprises and startups are less inclined towards using IT outsourcing, the “dedicated team” model can be considered. From operations and priorities to key strategic planning, the customer can have complete control over their project from the start.
Let’s look at a sample project cycle and what is the process of hiring a dedicated development team –
1. You share the requirements of your project. That includes
a. Tech stack
b. Resource requirement
c. Timeline and plan
2. The dedicated development team vendor crafts a plan for you
a. Providing pre-vetted resources
3. You assess and interview your team and select resources that suit your project
4. You set the delivery expectation
5. The vendor crafts a plan, milestones, and deliverables
6. You sign off and your project starts off.
As you’d note, this model allows you to select your own team. Additionally, the customer can make better choices overall, thus getting a much higher level of flexibility. It starts with allowing the customer to participate in choosing team members actively.
Unlike traditional IT outsourcing, where you will have to loosen your pocket and hope that the quality is ok, hiring a dedicated team enables you to cut down on your expenses while building a strong team.
Overall, a dedicated team will work like an integrated team that will be highly committed to your company’s success.
Advantages of Hiring a Dedicated Team Over Traditional IT Outsourcing
Have a Closer Look at the Advantages of Hiring a Dedicated Team as Compared to Traditional IT Outsourcing
Being Innovative & 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 to work together and deliver code, solutions, or features, thus giving you the liberty to concentrate more on your business. Being highly innovative and experienced, they work as a cohesive unit – introducing innovative solutions as and when the project requires.
On the contrary, the traditional outsourcing model has a 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 to your project needs and methodology. An IT outsourcing model, involves a low and fundamental augmentation model with fresh developers.
Mitigation to Risk
A dedicated team model has contingency plans in place to mitigating risks, such as loss of control or knowledge, problems with the employees’ morale, and quality of the product. On the contrary, it is challenging to manage risks in an IT outsourcing model due to the lack of visibility into the service providers’ processes.
Hiring a dedicated team is quite lucrative as it is just a fraction of the 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 complete control of the team and their workflow, the IT outsourcing model reflects and offers 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.
The customer controls a dedicated team 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 need to create a healthy culture to make your team successful.
Ruby on Rails, Java, or React. Legacy stacks or Open-source technologies.
You can build a Dedicated Development team as per your project requirements.
For many firms, the dedicated team model has become the new outsourcing alternative that helps them explore services, talent pool, and hiring options while enabling their flexibility in scaling.
We should know, we’ve helped 100s of organizations build their dedicated development team.
Spending on outsourcing services has grown in the last two decades, with an increase in companies buying-into the model – either through staff augmentation, remote employees, or a dedicated remote development team. As a result of this surge, many businesses throughout the world have begun to take advantage of outsourcing’s potential for commercial growth. This… Continue reading Choose a Dedicated Team Model Over Traditional Outsourcing for Long-term Cooperation
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