Development, Management, Team

Outsourcing or dedicated team?

Outsourcing or dedicated team?

What to do when you urgently need to develop and implement a new product? There are two possible ways out: to do everything on your own, or to ask for the help of other specialists or companies. Here we will consider the second option. For example, you have a small team, and none of its members have the right competencies and experience to quickly create and bring a new product to the market. Therefore, you need the help from the outside.

We live in a very dynamic era when time, in particular the time to market with the final product, has become one of the most important factors in the competitive struggle. Therefore, a very close contact of the development team with managers, marketers, business analysts is required, as well as constant feedback from users.

Thus the classic outsourcing models may appear ineffective, and this makes all the market participants to look for new cooperation models. Here we will compare two popular software development models – outsourcing and a dedicated team.

Definitions

  • Dedicated team is a model in which work on the project is carried out according to the tasks specified by a customer, who controls the workflow, while a team is busy only with the project.
  • Outsourcing is a model in which a company hires the necessary specialists from outside, and the work process is determined by the internal processes of the outsourcing company.

Both of these are not ideal, each has its own advantages and disadvantages, and here are the main ones:

Advantages and disadvantages

  Dedicated team Outsourcing
Benefits 100% involvement of developers in the projectemployer controls the team work;developers better understand the goals and objectives of the companythe team works more harmoniously;better feedback;high efficiency of problem solvingpredictable fixed pay for work. lower prices compared to the dedicated team;All risks associated with the organization of work are on the he contractor’s side.
Drawbacks Costs more than outsourcing;A customer plans the tasks and workloads of employees (there are certain risks, for example, you may have to pay even during downtime). Complex and less effective interaction between a customer and a contractor;When tasks change, a budget changes, and the terms of work are shifted;The project will take longer to complete.

So which one is better? There is no definite answer to this question. This is due to the fact that in different situations different factors are more important. Sometimes time is the major factor, and sometimes we have a limited budget, in some cases communication and feedback is crucial, or the ability to order technical support after development is completed. In any case, evaluating all the pros and cons is always the client’s job.

We are ready to offer you both options, as well as advise on choosing the best scheme for interaction. Contact the professionals!

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