HOW TO CHOOSE BETWEEN IT OUTSOURCING MODELS IN 2021

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IT Outsourcing models

Well today outsourcing becomes the essential of every company it provide developers to overcome the specific tasks that their in-house team are not capable of doing so. This concept now in 2021 becomes immensely strong and developed, as IT outsourcing company design their services in order to enhance the quality and to build efficient relationships with the client so as it goes a long way. For the enhancement the IT outsourcing company provides their services through different models according to the need of the client’s business.

In this blog we’re discussing the most successful outsourcing model which helps your business to effectively manage the complexities experienced in 2021.

Firstly let’s take a look at what actually an IT outsourcing is?    

IT OUTSOURCING

IT outsourcing has a broad meaning, it includes the work ranging from development of IT solutions up to the execution of different IT functions. As all these roles are performed by a third party which provides services. Simply we can state that:

“IT outsourcing is the representation of the processes of IT to a third party, which allows companies to manage their lack of expertise and internal resources and enables business growth and digital transformation.”

ADVANTAGES OF IT OUTSOURCING

 Assigning a third party IT outsourcing company has many advantages:

  • Companies can focus on their fundamental business objectives as the IT section becomes the outsourced company’s responsibility.
  • This is a fact that in-house teams require time to develop required skills. However IT outsourcing company provide those skills in no time.
  •  Managing and directing the in-house team as well providing them tools can become costly. While through outsourcing a business can manage that cost.
  • One can immediately bring changes and even kick off projects and quickly adjust to new projects. Without having to recreate and train the entire IT team.
  • An outsourcing IT Company provides experienced developers so a business can implement advanced technologies in their business operations and can have advanced and competitive products and services.
  • The professional developers can handle and fix problems in a much better and reliable way than an individual in-house team.
  • A company can monitor its progress 24/7.

LIMITATIONS

Outsourcing the developers also has some limitations

  • Finding a right IT outsourcing company is the most important as well as toughest job because today there are lots of IT outsourcing companies present in the globe. You have to set up the proper criteria through which a selection of services can be made according to your specifics.
  • As developers are provided from all over the globe so the time differences and remoteness of developers can obstruct communication.
  • The cultural and language barrier may also become the barrier in communication and leads to misunderstanding.
  • In this concept the third party has access to your business personal assets which may threaten security.
  • The remoteness of developers causes improper monitoring of work.
  • The developer has to adapt their operations according to client’s specifics, This is a time consuming process.

IT OUTSOURCING MODELS

The CEO of a company maps it out and works out whether the in-house team can handle the specific work goals or not. Depending on the situation one of three outsourcing service models can be chosen.

PROJECT BASED MODEL (full-process outsourcing)

In the project based model the client doesn’t have to involve itself in the project development,  the third party developers have given complete control over the project and are responsible for project development including all aspects like team management , results, delivering and risks.

BENEFITS OF PROJECT BASED MODEL

The benefits of choosing this model is

  • The client has to involve less in the project development in that case he can focus and work on first priority tasks and processes.
  • The outcome of the project is quite predictable as it totally depends on outsourced experienced developers.
  • Access to expert IT developers from all over the world gives your product the best shine.
  • IT developers are responsible for any difficulties and risks.

LIMITATION        

  • The client has a little control over the project developmental process.
  • The cost of the project is decided after selecting the specifics of the project by the IT developers which may become expensive for the client.

WHEN TO CHOOSE PROJECT BASED MODEL

The companies who lack IT expertise should go for this model. Also the companies that have complex projects should assign developers using this model as it ensures the continuity of the project and suits for the long term relationships.

DEDICATED TEAM (managed team)

This model is much similar to a project based model as the project development is still the responsibility of IT developers. In this model these outsourced developers work with the client’s in-house IT department on a specific task or project. They don’t get fully integrated into the company or work as a client’s staff, they work independently.

BENEFITS OF DEDICATED TEAM

Well the advantages of the dedicated team model is much the same as the project based model.

  • Through this model you can have a control over project development which ensures that these developers work as your vision.
  • The better performance and access to the processes can be the result because the developers work along with the in-house specialists.
  • However little time and effort is invested by the client in the project as it is the responsibility of the outsourced developers.
  • The better outcome of the product can be obtained because the dedicated team is set up thoroughly according to your project.

LIMITATIONS

Dedicated team also has some limitations

  • This model is not suitable for short term co-operations.
  • Issues like communication may arise.
  • Kick-off projects may take some time as workflow and processes have been set up.

Also read: 7 Biggest Issues and Challenges for Tech Companies in 2021

WHEN TO CHOOSE DEDICATED TEAM MODEL

This model works perfectly for the company where employee’s work on the core product and there is a side product to be worked on. However the client may hire outsourced developers through dedicated team model when the following circumstances develop:

  • The in-house team lack certain expertise require to maintain workflow
  • The in-house are insufficient and client don’t want to hire new staff
  • The client liked to be involved in the decision making.

STAFF AUGMENTATION

In this model the client merges the outsourced developers with his in-house developers and manages them according to his needs. However this collaboration is temporary. The outsourced developers work side by side with in-house developers to fill in certain positions. The client has total control over these experts and is responsible for the project development.

BENEFITS OF STAFF AUGMENTATION

Following are the benefits of staff augmentation

  • You can speed up the process of the development without hiring the full time specialists.
  • Manage the whole team including outsourced developers and can set the terms according to his needs.
  • Can access skills lacking by the in-house team.

LIMITATIONS

Following are the limitations of staff augmentation model

  • The project development responsibility is all over the client.
  • The communication issues among the teams may become the hurdle for the project development pace.
  • There is a high risk of turnover of increased staff.

WHEN TO CHOOSE STAFF AUGMENTATION MODEL

Staff augmentation model works well for both long term and short term relationships. The companies should choose this model when:

  • It has a well defined established development process.
  • Company should contain an IT department and a tech leader.
  • The company lacks in resources or skills that can be supplied through outsourced developers.

The developers provided by IT outsourcing company may from following concepts:

ONSHORING 

this concept says that the outsourced developers should be from the local talent pool. It provides better communication and understanding but at the same time the client has suffered from high labor and limited pool of experts.

OFFSHORING

This concept says that the outsourced developers should be from anywhere in the globe. What all matters is the experience and skills of that developer.  This concept includes a global talent pool.

NEARSHORING

This concept is an intermediate between the above two. It says that developers can belong to nearby neighboring countries. It provides a much larger talent pool than onshoring at better cost.

OUTSOURCING PRICING MODELS

Outsourcing pricing model is basically a payment method in which the end customer pays in accordance to the service they need. The pricing model can vary depending on the level of service.

FIXED PRICE MODEL

When the amount to be paid to the developer is fixed and only paid when that goal is achieved , this pricing model is said to be a fixed price model. However in this model the client should tell each and every aspect of his project to the outsourced developer so that he can deliver you the exact product as you want. This model is best for projects that are clear, short and well defined.

TIME AND MATERIAL

This model is basically work for the projects whose terms are not well defined and its working may be harder than normal also the variables are unknown. This model says the billing is done according to the time and material used in development of the project.

DEDICATED TEAM

Well in this model the client hires the whole outsourced developer’s team and pays them monthly as agreed. This model is best for the projects that are large and requires the long term relationships between outsourced developers team and client.

In a Nutshell

These are the best IT outsourcing models for 2021 through which a company can hire IT developers. Well for choosing which model is best suitable for the project can be determined by keeping in mind the following aspects?

  • Understanding the project specifics, budget and time frame.
  • Choosing the right IT outsourcing service provider is extremely important.
  • Then go for the selection of IT Outsourcing model.
  • Test and communicate with your partner. Makes it effortless; this provides flexibility and better understanding.

NOW BEGIN WORK………   

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