The trend of outsourcing in software development is increasing day by day because businesses want the best experts to build their Software. Additionally, software outsourcing is way more convenient and cost-effective than having an in-house software development team. Businesses outsource in different ways. For example, many of them hire freelancers for specific tasks, and many of them contact software development companies to have a remote team for their software development.
However, most of the time, a software development company is a better option than freelancers because it provides a team of experts with diverse skills and ensures reliable project delivery, whereas freelancers may offer limited expertise and availability. Most importantly, you can trust software development for transparency and security throughout your software development process.
Now, when you go to outsource software development services from any software development company, there are two standard software development outsourcing models from which you can choose. These two software outsourcing models are project-based and dedicated team models. Both have different advantages, and you can select according to your requirements.
However, the question is which outsourcing model will be best for your business needs and how you can select the most suitable one. The answer to your questions lies in this article, which discusses the advantages and disadvantages of both outsourcing models. We will compare project-based and dedicated team models and guide you when you choose the project-based model and when you choose a dedicated team model. So, let’s dive into the topic.
1. Project-Based Model in Software Outsourcing
Project-based software outsourcing is when you hire external individuals or teams to compile a specific project. This project might involve software development, website development, bug fixing, quality assurance, testing, or anything else. In the project-based outsourcing model, the entire remote team works on only one specific project from start to end. After the compilation of this project, the work of the partnership ends. It gives you one or more experts for your software development, from designers to developers.
Your outsource partner will handle the entire development process, starting from developing to delivering the final product that can meet your requirements. That means you can focus on other important tasks of your business. The entire control of your remote team will be in the hands of your software development outsourcing partner, but your in-house project manager can keep in touch with outsourcing partners regarding updates on your project.
There are many outsourcing software development companies in the market; make sure you have done proper research regarding the expertise and experience of these companies. Then, choose the trusted software development company to leverage Project-based outsourcing services.
Now that we are clear about the meaning of the Project-Based Model in Software Outsourcing services let’s discuss the benefits and challenges of this outsourcing model.
Benefits Of Project-Based Model
1. Specialized Expertise
Your Different projects may require different expertise. For example, to build a great website, you need a designer and developers. It’s not a practical approach to hire an in-house team of people with this expertise because you need this expertise only for a particular project. Hiring an in-house team will be time-consuming and costly, and many times, you can’t find experts in your city. That’s why project-based outsourcing is best: you can hire a proven expert or team of experts for a short period of time.
2. Cost-effectiveness
Project-based software development is a cost-effective approach because you don’t need to go through a long hiring process to select experts for your project. Your outsourcing partner will manage the entire team, so you don’t require any extra premises or offices for the seating arrangement. Additionally, you can get a skilled and experienced team, so you don’t need to pay any training expenses.
3. Defined Timeline
The main characteristic of Project-based software outsourcing is to leverage the benefit of expertise for a particular time period. So, the tasks are clearly defined with specific timelines for your remote team. And now, it’s the responsibility of your outsourcing software development company to deliver the project within the pre-decide time limit. So, you can be worried about that project and focus on the core competency of your business.
Challenges of Project-Based Model
1. Communication Challenges
In project-based Software outsourcing, the entire control of the team is in the hands of your outsourcing provider, and both are locked in different cities and, many times, in different countries. In this case, it becomes difficult to communicate effectively and continuously. Because of a lack of communication time, your remote team does not understand your requirements, and you may not get satisfactory results.
2. Lack of Long-Term Relationship
As you know, project-based outsourcing is for specific projects, which means it’s a short-term outsourcing model, and when your project ends, the partnership between you and your outsourcing partner ends. As it is for a short period of time, it poses challenges for businesses when they need further updates, maintenance, or additional features and they need new partnerships.
3. Dependency on Outsourcing Partners
As the entire control of your remote team is in the hands of your outsourcing partner, no doubt you can contact them for updates regarding your projects. Still, your business needs to depend on your outsourcing partner for critical tasks, potentially compromising control over project timelines and quality.
Now, we are clear about what product-based software outsourcing is and what the benefits and challenges of this outsourcing model are. Now, let’s discuss when you should choose the project-based software outsourcing model.
When should You choose a Project-based Model?
If you have the following requirements, then project-based software outsourcing is the best option for your business.
- When you have a project with clear objectives, timelines, and scopes.
- When you need specialized expertise for one-time tasks.
- When internal teams lack specific skills or experience required for a particular project.
- For flexibility in resource allocation without long-term commitments.
- When you want to control costs by paying for services on a project-by-project basis.
- When you need to deliver your project quickly without any management burden.
- When you want to develop an important project that is unlikely to change in the future.
So, this is all about the project-based software development outsourcing model; now, let’s move toward the Dedicated Team model and discuss when this is appropriate for you.
2. Dedicated Team Model in Software Outsourcing
A dedicated team model in software outsourcing means hiring a dedicated software development team of experts from a software outsourcing company for long term. This team focuses completely on your project. It’s like having your own team but working from a different place. You will be in charge of what needs to be done by the team while your outsourcing partner manages the team on your behalf.
This entire setup is very flexible, and if you need more team members for your project, you can easily extend your team size. This team works for a long period of time only on your specific project, so they become familiar with your problems and requirements. Your in-house project manager or project owner can stay in touch with the dedicated software development team and guide them regarding the scope, features, and timeline of the projects.
Now that we are clear about the meaning of the dedicated team model in software outsourcing services let’s discuss its benefits and challenges.
Benefits of the Dedicated Team Model
1. Expertise and Specialization
You can have a dedicated software development team where you can select different experts who will only focus on your projects. So you can get specialized expertise for your project development. The team ensures you high-quality work and efficient problem-solving that can lead to better outcomes for your project.
2. Control and Transparency
You will have complete control over your dedicated team just the way you have over your in-house development team. You have full right to take complete control over the project’s direction, priorities, and timelines. Additionally, the team will work for a longer period of time, so you will benefit from transparent communication and collaboration with the dedicated team.
3. Flexibility and Scalability
This model is very flexible, and you can make changes to your dedicated team according to your requirements. If, in the future, you need more experts on your team, then it is very easy to scale your team size. You can even change the roles and responsibilities of your team members as you have full control over the team.
Challenges of the dedicated Team model
1. Costs and Budgeting
No doubt, having a dedicated team will be cost-efficient in the future, but initial budgeting and forecasting can be challenging.
Determining the right size of team with relevant expertise in your budget might be difficult because resource allocation requires careful planning to avoid under or overestimating project costs.
2. Dependency on External Team
No doubt you have high control over the remote team, but still, you have to rely on your external team. Relying on an external team means you’re dependent on their availability, performance, and expertise. If the team faces issues like turnover, lack of skills, or communication gaps, it can impact project progress and quality.
3. Maintaining Engagement and Motivation
As your team will be working from different places, it becomes difficult to engage them and motivate them to work. Without the physical presence and direct supervision, it becomes challenging to maintain team morale and commitment to project goals.
Now, we are clear about what product-based software outsourcing is and what the benefits and challenges of this outsourcing model are. Now, let’s discuss when you should choose the project-based software outsourcing model.
When should You choose the Dedicated Team Model?
If you have the following requirements, then project-based software outsourcing is the best option for your business.
- When you have long-term and complex projects where ongoing support and collaboration are necessary.
- When you need full control over the project’s direction, priorities, and timelines.
- When your in-house team lacks the necessary experience or expertise.
- When you don’t have the resources to manage the entire in-house team, you still want to be a decision-maker.
- When you require a team fully committed to your project’s success.
Every business faces different problems that require different solutions and software outsourcing models; the model that is best for any business might not solve your problems. So, it is important to analyze your business, observe the problems you face, and determine your requirements before choosing any software development outsourcing model. The article’s purpose was to clarify two trending software outsourcing models so it becomes easy for you to select the best one for your business. So, study both models, research more about them, and choose the best one that suits your business requirements.